NRF Says Gift Card Scam Is Overblown

Dec 5, 2006 2:11 PM

WASHINGTON - The National Retail Federation here is downplaying reports about a new gift card scam that says consumers are losing money from gift cards when criminals steal the card numbers from the back of the cards. “The retail industry has implemented sophisticated safeguards to prevent thieves from obtaining, and using, consumers‘ gift cards,” said Joseph LaRocca, NRF vice president of loss prevention, in a statement. “Most gift cards are outfitted with scratch-off security codes and protective packaging, in addition to a special verification number distinguishing one gift card from another. Also, retailers have created complex back-end systems to prevent criminals from obtaining proprietary gift card information.” LaRocca encouraged shoppers to keep the original receipt from the purchase of gift cards in the unlikely event that they need to return a card to a retail store because it has been used.