Gift card packaging used to be non-existent–just a stack of gift cards at the checkout counter. But with sneaky people doing stupid things, gift card manufacturers have had to get increasingly clever in packaging gift cards in ways that deter theft. I watched the above story on gift card fraud and wanted to share a few more words of caution. The news piece accurately says to inspect any gift card before purchase, but doesn’t really say what to look for. Here is my advice:

What to look for:

• On paper packaging such as what is shown in the American Express example above, check for the paper to be ripped, torn, glued, or otherwise disturbed in some way. Are any corners lifted or bent? Does the gift card holder feel thicker than the one next to it?
• On plastic packaging, like the two-part plastic gift card that the cashier has to break in the middle in order to swipe the magnetic stripe, check that the plastic is unbroken and the stripe hasn’t been tampered with in any way.
• Check the PIN scratch-off area. One way to steal the value of your gift card is for the thief to use the gift card online without actually taking the plastic. But it can’t be done without the PIN number. So be sure all scratch-off areas on the back of the gift card are in tact.
• Watch the cashier’s handling of the gift card the entire time and ask to have the card as soon as it is activated–just to be sure there’s no swapping. Sometimes gift card errors occur accidentally. For example, if two gift cards are stuck together, the cashier might activate one and hand you the other.
• Keep the activation receipt. If anything does happen, this record will help you prove your side of the story. Give the receipt to the recipient as well so he or she can offer proof of the card’s value in case there is a question.
• Pick from the middle of the stack. Gift card fraud has to be premeditated. The thief has to get the card data, lie in wait for you to activate the card, then use the card’s value before you do. Cards on the front of the stack are more likely to be the ones criminals are waiting for you to activate.

It’s a shame we even have to have this conversation. Gift card fraud is nothing compared to credit card fraud in which thousands of dollars can be spent before you even notice it, but I can’t afford to lose even 20 dollars, nor do I want to give someone a gift only to discover the balance is zero. 

So my advice is not to be paranoid, but to simply be cautious.