B.C. non-profit warns consumers about gift card fraud

A Metro Vancouver non-profit is sharing a cautionary tale after hundreds of dollars were drained from a gift card.

Alexis Root, the founder of the non-profit Recovery Kidz Society, is warning consumers about purchasing prepaid gift cards for families in need.

“I want people to know that when you go to buy a gift card, make sure that you’re buying it from behind the tills, not from on the floor,” Root says.

The warning comes after the family she gifted a card to claimed there was nothing on it.

Dan, who received the gift card, said he found it was empty while trying to use it at the grocery store, and reported the fraud immediately.

Emails reviewed by CTV News from the card manufacturer indicate the $500 was spent on a website called spin-brands.com.

In an email to the manufacturer, the family denied any involvement with the site and was given a full refund.

Loblaws, the owner of Shoppers Drug Mart, told CTV News in a statement: “Our store teams are trained to recognize tampering and other fraudulent situations involving gift cards, doing their best to intercept suspicious transactions before purchase. That said, we understand this is a frustrating experience for customers.”

Prof. Thomas P. Keenan at the University of Calgary says issues with gift cards are common. “They’re inherently insecure,” he said.

Blackhawk Network, the manufacturer of the gift cards, told CTV News the physical gift card was real, but fraud did occur.

“Following a full review, we determined that this incident was not the result of card tampering in store or on the gift card rack,” the company said in a statement. “Our investigation indicates that the fraudulent activity occurred after the card was purchased, post-sale.”

It is still not clear how the fraud occurred. Blackhawk Network would not comment on its review.

After her experience, Root is now searching for more answers, and better protection for consumers. “If a retailer chooses to sell that gift card, it (should be) kept behind the till.”