THE National Retail Federation says gift cards will be the second most popular gift category this holiday season behind clothing.

They will represent 44% of all donations, for a total amount of nearly $29 billion. The average shopper will purchase three to four gift cards at just over $50 per card, with restaurant gift cards being the most popular.

At the same time, AARP says that 30% of people have given or received a worthless gift card, and that number is growing. In a crime known as “card dumping,” scammers:

• Tampering with an unused card at a retail store to obtain the barcode, PIN, or other security number

• Close the card

• Wait for a consumer to buy and load them with money

• And then spend the balance before the consumer or gift recipient can

How to Look for Signs of Gift Card Forgery

A North Carolina man bought two gift cards totaling $250 for his niece as Christmas presents last year and when she went to use them two months later, the balance on each card was $0.

In November, a Chicago man was arrested while trying to replace some of the 1,807 previously stolen and falsified gift cards on the shelves of two Walgreens stores.

Check for tampering with stickers covering barcodes or other security numbers on any gift card you purchase, especially one on a display in the store. Run your finger across the back to see if a sticker has been applied to the barcode and look for other signs of tampering such as tears or wrinkles. It’s best to buy a gift card that’s behind a register or otherwise secure, although you should still examine it closely.

Buying a gift card online may be a safer option so you can avoid the possibility of purchasing a compromised card at a store. If you buy online, make sure you buy directly from the merchant’s real website.

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Be wary of websites or social media ads promoting gift cards for popular retailers at deep discounts. They can use these offers to steal your payment card number or other personal information. Look for the Better Business Bureau (BBB) ​​seal or search for the business on BBB.org to see if it’s a reputable retailer.

Registering a gift card can offer some protection

Use caution when purchasing from a third party. If you purchase a gift card at an auction or from a third-party website, you may end up with a card that is worthless, expired, or fraudulently obtained from another source. And be wary of websites that offer to check your gift card balance but are actually a way to steal money from your card.

If the retailer offers the option to save the gift card, take full advantage of it. This makes it easier to protect the balance; you can report stolen funds sooner and potentially save money stored on the card.

If you receive a gift card, don’t delay using it. The longer a card remains in circulation, the more likely it is that a cybercriminal will steal the balance, the merchant will go out of business, or you will simply forget about it.

Treat a gift card like cash. Contact the issuer immediately in the event of loss or theft. Most issuers have toll-free telephone numbers for reporting lost or stolen cards.

Randy Hutchinson is President and CEO of Better Business Bureau of Mid-South.

This article was originally published on Memphis Commercial Appeal: Don’t be fooled by a worthless gift card. Follow these tips. | Notice