Identify Gift Card Scams on eBay
From GiftCardNexus
This is a list of warning signs that describes potential gift card scams on eBay. Scam can occur for both the buyer and sellers. If a transaction exhibits more than one of the following characteristics, then the odds that the transaction is a scam is more likely.
Contents |
[edit] Request for PIN Code
Scammers have been know to ask sellers for a gift card’s account number and PIN on the pretext of verifying the remaining balance. The scammers have no intention of verifying the remaining balance. Instead, they will use the account number and PIN to make online purchases. Therefore, do not list the full account number in the description and do not give out the PIN.
For buyers, be cautious with bidding on gift cards that have an exposed PIN code. The seller can mail the card out and turn around and use the PIN to make online purchases.
[edit] PayPal for Local Pickups
Sellers should not accept PayPal payments for local pickups, because the transaction will not be covered by PayPal’s Seller Protection Plan. Gift cards not shipped to a confirmed address in not eligible for the protection plan. Instead, request that payment must be made in cash for local transactions. To further protect oneself, agree to meet in a public place, preferably at the store to verify the balance to winner at the same time. Hopefully, this will protect both parties and allay any concerns with cash transactions.
[edit] Zero Feedback
Not all winners with zero feedback are scammers as everyone has to start their feedback somewhere. However, there is a good chance of this occurring if the winner is paying with PayPal and does not have a confirmed mailing address. Explain to the winner that they need to confirm their address with PayPal before mailing the gift card out or state in the description beforehand that winner must have a confirmed mailing address. The seller can cancel the auction and relist on eBay.
As a buyer, be cautious with buying gift cards from sellers with zero feedback. Typically, there are less bidders on auctions, so it is possible to get a good discount. However, pay with a credit card, as it provides additional protection.
[edit] Final Price Greater Than Balance
As a seller ask yourself, “Why would anyone pay more for a gift card from a total stranger when they can get the same card with the same face value directly from the merchant?” It does not make sense. Most people buy gift cards on the open secondary market because they are hoping to get a discount. If there is no discount, then why risk buying on the secondary market from a stranger. There are some circumstances when the final price can be greater than the remaining balance, such as shipping cost pushing the final value slightly over the remaining balance. While this may seem plausible, it is smart to be wary. Contact the winner and try to get a feel for the situation.
[edit] Unconfirmed Address
PayPal's Seller Protection Plan is only valid if the gift card is mailed to a confirmed address. Therefore, request to mail gift cards to unconfirmed or address different from the confirmed address should be approach with caution. What is the likelihood that someone buys gift card as a present on the secondary market, especially on eBay, and have it mailed to someone else without a note or greeting card instead of giving the gift card themselves. It is very rare indeed. In addition, thieves do not want tip off victims that their credit card is stolen. Therefore, they will have goods mailed to a different mailing address than the credit card’s billing address. Be wary of requests to mail gift cards to an address different than the one provided by PayPal. To play it safe, do not mail to an unconfirmed mailing address. Ask the winner to confirm the address.
[edit] Expedited Shipping
Remember that the majority of people buying unwanted gift cards on the secondary market are doing so to get a discount. By requesting expedited shipping, such as next day air, the savings would be eroded. In addition, thieves using stolen credit cards want to purchase goods and get it as fast as possible before the credit card is reported stolen and no longer usable. Therefore, keep an eye out for expedited shipping in conjunction with the other red flags.
This tips are no sure proof way to remove all possibilities of getting scammed. However, these tips should help minimize the chances of running afoul. Remember to stay vigilant and properly weigh the risks involve.
