Beware of Disney Gift Card Scams
By Darren Wittko
It’s no surprise that Disney vacations are pricey and while I believe you get what you pay for, it helps to save money anywhere you can. Disney Gift Cards can often be purchased for amounts less than their printed value at stores like Target and BJ’s Wholesale.
Disney Destinations allows you to pay for your vacation using Disney Gift Cards so purchasing them at a discount is a nice little hack to get extra savings.
Here’s what happened to me. I had planned a Disney cruise for my family and purchased several gift cards at BJ’s Wholesale Club.
I saved about 5% on $3,000 worth of gift cards - close to $150. Not a big savings, all things considered, but it seemed worth it at the time.
A few days later I went to apply payment to our reservation and discovered that six of the gift cards, each with $100 on them, had a zero balance.
I immediately returned to BJ’s figuring my gift cards hadn’t been activated properly. After a lot of back and forth with the store manager and Disney, it was determined my cards had already been redeemed - I was scammed!
So how did this happen?
There have been numerous scams reported with gift cards, not just with Disney, and according to the FBI, scams are on the rise and getting more sophisticated.
The More Simple Scam
There are numerous scams fraudsters use to gain gift card numbers, many are pretty high-tech.
But the simplest method is just taking the cards off the rack in the store. These are the cards that are accessible to everyone.
The scammer writes down the gift card numbers and scratches off the security strip on the back of the cards to get the security codes.
The scammer then puts replacement strips over the security codes and then sneaks them back into the store. Replacement strips are available online.
Sammers can replace the security code with products easily found online.
Later, after you buy one of those cards and load money onto it, the scammer gets an instant alert that tells him that the funds have been loaded onto the card.
According to the FBI, the scammer knows as soon as someone activates the card, because they use automated software that periodically checks the card balance via the internet, this is called pinging.
If he’s a low-tech thief, he just checks the Disney gift card website every day until he sees funds have been added.
And if you haven’t activated your gift card yet, he takes the funds.
What does the scammer do with the gift cards?
He can sell the cards to companies that purchase gift cards for a reduced rate, such as raise.com. These sites exist for those who get gift cards but would rather trade them in instead of redeeming them.
Perfect for when you get that gift card to the Jelly of the Month Club.
For example, a company might offer $75 on a $100 gift card.
But to the scammer, that's an easy profit of $75.
The scammer can also launder the money through online classified sites like Craigslist or eBay for legitimate products they purchased from the Disney Store.
How to Protect Yourself from Gift Card Fraud
Buy gift cards online directly from the retailer. Criminals do not have easy access to those cards. Buy online especially if you're purchasing a high-value gift card.
Don't buy in-store racked cards with easily accessible numbers and PINs. If you buy in a retail store, look for gift cards kept behind the counter or in well-sealed packaging.
If possible, change the security code as soon as you buy the card. Register the gift card when you get home and change the PIN.
If you are purchasing numerous gift cards, consolidate them down to one card as soon as possible, and change the primary card’s PIN. With Disney Gift Cards, you can transfer as much as $1,000 onto one card. And be sure to redeem that card as soon as possible!