Gift cards are a convenient way to transfer money and to show appreciation to others. However, the act of purchasing gift cards can lack transparency. For example, if someone buys up gift cards with a stolen credit card, it can be difficult to unravel the financial mess that this act inspires.
Partially due to a lack of transparency in the acts of buying and exchanging gift cards, these resources are increasingly linked to fraudulent schemes and criminal charges related to theft, scams and identity-related crimes.
Missteps and misunderstandings
One of the most common types of gift card fraud involves using stolen credit card information to purchase gift cards. Because gift cards can be quickly resold or used anonymously, they are often targeted by individuals looking to convert stolen data into usable funds. If someone is caught buying or possessing large quantities of gift cards tied to fraudulent purchases, they may face charges such as credit card fraud, wire fraud or possession of stolen property.
Another scenario that can lead to fraud charges involves refund fraud. This happens when someone returns stolen or fraudulently purchased merchandise to a retailer and receives a gift card instead of cash. Repeated instances of this behavior may be prosecuted as a form of retail theft or scheme to defraud. In some cases, businesses or employees suspected of manipulating gift card balances or issuing cards without proper transactions can also face internal investigations or criminal prosecution.
Gift card scams can also lead to charges for those involved in laundering money or participating in broader fraud rings. For example, scammers may trick victims into purchasing gift cards and sending the card numbers and PINs via phone or email. Even those who simply collect or distribute the cards on behalf of someone else may find themselves caught up in a criminal investigation.
It isn’t hard to see how law enforcement could make assumptions that lead to fraud charges, even when transactions themselves are made in good faith. Yet, depending on the amount involved and whether the crime crossed state or federal lines, these cases may be prosecuted at the state or federal level.
At the end of the day, what may seem like a minor gift card issue can quickly become a serious legal problem without proper legal guidance. Seeking support right away in the wake of an investigation or arrest, therefore, is important.
