Alerts

Gift Card Scams – What to Know

Gift card scams have surged in recent years, exploiting vulnerabilities in both physical and digital gift card systems. These scams often involve sophisticated tactics to drain funds or trick victims into sharing card details, leaving many consumers with empty cards or financial losses. Here’s a breakdown of common scams and how to protect yourself:

Types of Gift Card Scams

  • Gift Card Draining

    Scammers tamper with physical gift cards in stores, often using tools to read or copy card numbers and PINs before the cards are purchased. Once activated, they drain the funds. This method accounts for a significant portion of scams, with AARP reporting that 23% of U.S. consumers encountered empty gift cards in 2023.

  • Impersonation Scams

    Fraudsters pose as colleagues, supervisors, or organizations, urgently requesting gift cards for “events” or “awards.” Victims are tricked into sending card details, which scammers then drain or sell.

  • Government Imposter Scams

    Scammers impersonate authorities like the IRS or police, demanding payment via gift cards for fake fines or taxes. Legitimate agencies never accept gift cards as payment.

  • Phishing and Social Engineering

    Scammers send fake emails, texts, or calls, creating urgency (e.g., “your account is compromised”) to pressure victims into buying and sharing gift card details.

Protecting Yourself

  • Inspect Physical Cards: Ensure scratch-off panels and seals are intact. Avoid cards from open displays or kiosks.
  • Buy Securely: Purchase cards from behind counters or opt for digital gift cards sent via email/text.
  • Verify Requests: Legitimate organizations (e.g., government agencies, employers) will never demand gift card payments. Confirm requests directly with the source.

Protect yourself from Check Fraud

 

Check fraud is on the rise, fueled by a rise in organized crime targeting individuals and small businesses. Here are essential tips to safeguard yourself:

Prevention Strategies
  • Avoid Mailing Checks: Use secure digital payment methods whenever possible.
  • Monitor Transactions: Regularly check your bank account for suspicious activity.
  • Secure Your Checks: Store blank checks and bank statements in a locked location.
  • Use High-Security Checks: Opt for checks with enhanced safety features, such as chemically reactive paper.
  • For Businesses – Implement Positive Pay Services: This pre-authorizes checks, helping to prevent unauthorized withdrawals.
How to Avoid Being a Victim of Check Fraud Scams

Warning Signs to Watch For:

  • Unexpected Checks: Be cautious of checks you didn’t anticipate.
  • Overpayment Requests: Never accept checks for more than the agreed amount.
  • Urgent Action Pressure: Legitimate transactions don’t require immediate responses.

Key Prevention Strategies:

  • Verify Legitimacy – Call the issuing bank using official contact information to confirm the check.
  • Be wary of prize or lottery scams that ask for fees and avoid job scams involving fake checks.
  • Don’t send money back for overpayments or use check funds to buy gift cards or cryptocurrency until the check clears.
  • The FTC offers a guide on avoiding check fraud schemes.
How Fusion Bank can help
  • We offer Online and Mobile Bill Pay, which is often a more secure method of paying bills.
  • We order high-security checks, exclusively, for our customers.  No charge on these checks for SmartChoice account holders.
  • We offer Positive Pay for our business accounts, allowing you to verify checks before they clear your account.

Protect yourself from Identity Theft

Kansas Unemployment Fraud link:  https://www.dol.ks.gov/fraud

ID Theft Info from FTC:   https://www.identitytheft.gov/databreach

FTC Identity Theft click through help:   https://www.identitytheft.gov/

Free Annual Credit Report: https://www.annualcreditreport.com/index.action

SSA:  https://www.ssa.gov/antifraudfacts/

 

Credit Bureaus:
Equifax, Consumer Fraud Division, 800-525-6285, www.equifax.com

TransUnion, Fraud Victim Assistance, 800-680-7289, www.transunion.com

Experian, National Consumer Assist, 888-397-3742, www.experian.com

How Fusion Bank can help
  • We do not ask for personal information in email messages.
  • We offer our SmartChoice Checking account, which has identity theft protection benefits.

Protect yourself from Identity Theft

Kansas Unemployment Fraud link:  https://www.dol.ks.gov/fraud

ID Theft Info from FTC:   https://www.identitytheft.gov/databreach

FTC Identity Theft click through help:   https://www.identitytheft.gov/

Free Annual Credit Report: https://www.annualcreditreport.com/index.action

SSA:  https://www.ssa.gov/antifraudfacts/

 

Credit Bureaus:
Equifax, Consumer Fraud Division, 800-525-6285, www.equifax.com

TransUnion, Fraud Victim Assistance, 800-680-7289, www.transunion.com

Experian, National Consumer Assist, 888-397-3742, www.experian.com

How Fusion Bank can help
  • We do not ask for personal information in email messages.
  • We offer our SmartChoice Checking account, which has identity theft protection benefits.
Identity Theft Protection tips when Shopping Online
  1.  Make sure you have installed and updated antivirus, anti-malware and personal firewall software on your computer.
  2. Only shop on secure sites. To see if a Web site is secure, look for “https” in the address bar.  Make sure that you enter the correct URL. There are cases where hackers have purchased misspelled domains.
  3. Shopping Web sites have no reason to ask for your Social Security number, or passwords to your e-mail or bank accounts as part of the buying process. Never provide them.
  4. If you suspect a Web site is not what it claims, leave it immediately. Do not click any buttons on the site, run any content or download any software.
  5. Use different “strong” passwords (those that are more secure) for online retailers and your personal e-mail accounts.
  6. Don’t save your personal information on retailer web sites in return for more convenience or better deals. Many web sites have had their customer databases breached by identity thieves.
  7. Be aware of phishing e-mail scams that include Web site links advertising incredible deals. Rather than clicking on them, type the link of known sites by hand into your browser.

Protect yourself from Phishing Scams

Phishing is a type of scheme that uses fraudulent email, web pages and text messages to gather personal, financial and sensitive information for the purpose of identity theft. Most commonly, users receive spam email (mass email messaging), text messages and pop-up windows that appear to come from legitimate businesses. People have been tricked by these deceptive solicitations into sharing passwords, credit card, debit card, and bank account numbers.

For your protection, please remember to NEVER install programs suggested in emails, even if the email appears to be from an official or familiar source. Do not provide personal information in a response to a text message you have received.