The eventual buyer depletes the card of its value soon after the consumer’s gift card purchase. The scammer can then remotely access and retrieve the gift card’s value or, more commonly, the gift card information will, with blazing speed, be sold and resold on a secondary market. The scammer then directs the consumer to scratch off the security film on the back of the gift card and read out the numbers to the scammer. The scammer may even be on the phone with the consumer while the card is being purchased. Gift cards: The scammer convinces the consumers to go to a nearby store (e.g., Walmart, Target, Walgreens, or CVS) to purchase a gift card.Practitioners should be familiar with these somewhat exotic payment methods that may be used by scammers: Some of these payment methods are illegal even for legal telemarketing operations. Four Payment Methods That Scream “Scam”Ī person contacting the consumer by telephone and requesting any of the following four forms of payment is almost certainly a scammer. Credit card payments are discussed in NCLC’s Truth in Lending.
With the exception of credit cards, all of the payment methods discussed below are discussed in much more detail in NCLC’s Consumer Banking and Payments Law. The legal discussion below is in some cases a simplification of more complicated rules, which may have exceptions or differences from the general rules described. The article then turns to a discussion of legal rights and advice on getting money back for scammed consumers despite the consumer’s payment using those or other payment methods. Advocates should be familiar with these methods when helping clients, friends, or family.
The first two sections of this article summarize four payment methods that virtually announce that the transaction is a scam and others that wave a big red flag. A simple resource for consumers who have been scammed is. While scammers mostly use payment methods that leave people with little immediate recourse, consumers have options in some situations, and complaining quickly and widely may be the most important way of getting help. This article explains consumers’ legal remedies and options, which vary depending on the method used for the consumer’s payment. Scammers not only carefully plot out seductive scams, but also the best means to receive the consumer’s money.