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KNOXVILLE, Tenn. — As shoppers prepare to buy the last of their Christmas gifts, they may want to keep an eye out for a few common scams over the holidays.
Gift card and ATM scams can be popular ways for scammers to steal cash at the end of the year, said Tony Binkley, president and CEO of the Better Business Bureau of Greater East Tennessee.
“It’s crazy the lengths they will go to for $50 or whatever the gift card may be worth,” he said. “Sometimes these scammers will go in and put a different barcode over the one on the card itself. And when you scan that at the checkout counter, that money actually gets loaded to a different place.”
That means that when the cashier scans a gift card and shoppers pay, their money can actually go elsewhere and leave them with an empty gift card and out the cash. A sense of urgency during the holidays can also make folks more vulnerable to scams.
“This time of the year when people are buying gift cards and they’re in a hurry — that’s what scammers love,” Binkley said. “They love people to be in a hurry, not thinking, not making good decisions. So just slow down a bit. You’re spending your money. Make sure it’s ending up in the right place.”
Staying aware can protect shoppers from these common cash grabs, he said.
“Gift cards right now are probably a good last-minute gift to get for somebody like that, but you’ve got to be careful when you buy these things. When you buy them in a store, you want to inspect that packaging pretty closely to make sure it hasn’t been tampered with,” he said.
Anyone opting for a cash gift for someone instead of a gift card should be on the lookout at ATMs too, Binkley said.
“That piece that you’re going to slide your card into, make sure it’s secure and not loose because these skimmers can be placed right over the top of that card piece, that reader, and again that money can be intercepted,” he said.
Scammers can attach a plastic card reader on top of the actual card reader at an ATM or gas pump. When people swipe their cards, that card reader can take its card information and can use it for other purchases.
Binkley recommended to always use a credit card when shopping in a public place as a way to protect against scams. Debit cards will automatically have money taken out of bank accounts, whereas credit card transactions can be disputed.
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