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A recent retail theft crackdown in Northern California has uncovered a gift card scam affecting retailers and shoppers all along the West Coast.
During the crackdown, dubbed “Operation Bad Elf,” the Sacramento County Sheriff’s Office found a shocking number of gift cards that had been tampered with, KTLA sister station KTXL-TV reports.
Authorities say thieves are taking the cards from the racks, replacing the barcodes, and then placing them back on the racks for unsuspecting shoppers.
“When the consumer goes to check out, the cashier is loading the consumer’s funds to that barcode but it’s not to the physical card the consumer is holding, it’s to the card the scammers own,” Daniel Stiner, with the Better Business Bureau told news media outlets.
Once the customer tries to use the card, the money is gone.
“These specific gift cards can be funded anywhere from $5 to $500. So at their max balance, with the amount of cards we have, we’re looking at potentially $2.86 million in loss,” said Detective David Derouen.
Authorities say they recovered 5,739 tampered gift cards from an organized skimming crime that spans the entire state of California, 12 counties, and 54 retail locations.
The BBB says if there’s any question about a gift card that you find on a store rack, pick a different one.
“You can purchase online as well, and that’s even easier [because] in many cases it just emails right to the recipient,” Stiner said.
Other tips from the BBB:
- Inspecting the card closely to make sure there are no signs of tampering
- Keeping your receipt from the purchase
