CNBNews

...Against Gift Card Fraud This Holiday Season

(TRENTON) — Assemblywoman Barbara McCann Stamato (D-Hudson) is urging consumers to be cautious when purchasing gift cards this holiday season and has called on retail merchants to display clear warnings about gift card fraud. Her call to action comes as part of a broader effort to combat the growing number of scams targeting consumers through the use of gift cards.

The Federal Trade Commission (FTC) has issued a warning to consumers, advising them that only scammers will ask you to buy a gift card and provide them with the card's number and PIN. No legitimate business or government agency will ever request payment via gift cards.

According to the FTC, these fraud schemes typically begin with a phone call, text message, email, or social media message. Scammers often impersonate well-known companies or even government agencies, convincing victims to buy gift cards from major retailers such as Google Play, Apple, or Amazon, and then provide the scammer with the card details.

Assemblywoman McCann Stamato, a strong advocate for consumer protection, has introduced legislation designed to raise awareness of this prevalent scam. Assembly Bill A4636 would require retail merchants who sell gift cards to post conspicuous signs at or near the display areas where gift cards are sold, warning consumers about the risk of fraud and providing instructions on how to report suspected scams.

"Educating and informing consumers is the best defense against gift card scams," said Assemblywoman McCann Stamato. "That is why I have introduced legislation that would require retailers to post notices at gift card displays, helping shoppers recognize the warning signs and take appropriate action if they suspect fraud."

The proposed bill mandates that the signs include a clear warning about the potential for fraud and provide guidance on what to do if someone believes they have been targeted by a scam. The goal is to make consumers more aware of the risks involved with gift card transactions, especially during the busy holiday shopping season when fraudsters often target unsuspecting buyers.

"A gift card scammer will tell countless stories to trick people into buying gift cards so they can steal their money," added Assemblywoman McCann Stamato. "Businesses that sell gift cards have a responsibility to protect their customers. By posting these notices, we can help prevent people from falling victim to fraud and ensure they know what to do if they suspect they are being scammed."

Consumers are reminded that gift card fraud is a year-round issue, but it becomes especially prevalent during the holidays, when scammers take advantage of the festive shopping environment. Assemblywoman McCann Stamato's bill is a step toward protecting New Jersey residents from these dangerous schemes.

Bill A4636 is also sponsored by Assemblyman William Sampson (D-Hudson).