Prepaid credit card scam leaves buyer with worthless plastic
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Hey there, time traveller!
This article was published 11/12/2019 (1568 days ago), so information in it may no longer be current.
Police are warning the public about a new scam targeting prepaid credit card users ahead of the holiday season.
People buying or gifting prepaid credit cards should take a close look at the package to make sure it hasn’t been tampered with by fraudsters.
Police say scammers are stealing prepaid credit cards, which come in sealed packaging, from retail outlets and replacing the cards with blank lookalikes.
Winnipeg Police Service spokesman Const. Jay Murray said most prepaid credit cards are activated by cashiers who scan a magnetic strip on the packaging, not the card itself.
Fraudsters are taking advantage of this system; when the package is activated they then have a card loaded with cash in hand. The purchaser is left with a worthless piece of plastic.
“They’re often carefully opening the packaging, replacing the card that’s inside with one that doesn’t work or has nothing on it,” Murray said.
“And they’re resealing that package, bringing it back to the store, putting it back on the shelf… and they’re hoping someone is going to come by and purchase that.”
It can be difficult to tell whether a package has been tampered with, Murray said, adding customers often don’t realize the card has been swapped until they try to make a purchase. By that time, the scammer has already used the funds on the card.
The scam appeared in Winnipeg just within the last year, and few people here have been victimized. But the number of stolen cards is increasing, Murray said.
There are ways to track the use of fraudulently obtained cards after they are activated, he said, but the best way to avoid being scammed is to examine the item to ensure its authenticity before going through with the purchase.
“We believe it’s very important for people to protect themselves, and we want everyone not to be taken by surprise when they open these prepaid cards, especially if they’re Christmas gifts,” he said.
Compromised prepaid credit cards can be reported to Winnipeg police, the Canadian Anti-Fraud Centre or the point of purchase.
danielle.dasilva@freepress.mb.ca
History
Updated on Thursday, December 12, 2019 3:43 PM CST: Removes gift card image