NJ retail merchants could be asked to do more to prevent gift card fraud

🔴 Gift card scammers are prevalent during the holidays

🔴 One NJ lawmaker wants to add another layer of protection for consumers

🔴 Her legislation would require retailer to post warning signs

Do you still need to purchase some gift cards for holiday gifts? Beware of the scams.

One New Jersey lawmaker, a strong advocate for consumer protection, has introduced legislation to raise awareness of this prevalent scam.

Assemblywoman Barbara McCann Stamato, D-Hudson, has called on retail merchants to display clear warnings about gift card fraud.

The proposed bill, also sponsored by Assemblyman William Sampson, D-Hudson, would require retail merchants in New Jersey that sell gift cards to post conspicuous signs at or near the display areas where the gift cards are sold, warning consumers about the risk of fraud and providing instructions on how to report suspected scams, McCann Stamato said.

The goal is simply to make consumers more aware of the risks involved with gift card fraud, especially during the busy holiday season when scammers often target unsuspecting buyers.

But McCann Stamato also said that gift card fraud is a year-round issue. Her bill is a step toward protecting New Jersey residents from these dangerous schemes.

“There are so many gift card scams out there, and while we know that most, if not all merchants are honest, these scams are so sophisticated that I feel that one more added layer of protection is necessary,” she said.

“There are signs when you’re buying cigarettes, or buying alcohol, and this would be just one more signage that I believe would help consumers to be aware of things that could happen when they purchase a gift card,” McCann Stamato added.

The assemblywoman recalled a personal story about a time when she had purchased a gift card and didn’t get a receipt. When she went to use it, the gift card was never validated, so she could not use it. So, whenever she purchases a gift card, she always gets the gift receipt and tapes it to the back of the card as proof of purchase.

The Federal Trade Commission (FTC) has also issued a warning to consumers that only scammers will ask that they 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.

“A gift card scammer will tell countless stories to trick people into buying gift cards so they can steal their money. 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,” McCann Stamato said.

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