Incident Reported at Target
At the register, Target declined a gift card, stating the balance was zero. Rena in San Ramon experienced a similar situation when tried to use her Target gift card, which was empty before could use it. The situation led her to ask another bride-to-be to check her gift card, which also had no balance.
Widespread Issue
Several complaints have been received about similar issues. Target is at the center of a major case currently unfolding in Sacramento. In December, riff’s deputies arrested a man inside a Target store who was found placing tampered gift cards on the rack. They discovered more than 5000 Target gift cards in his car.
Fraudulent Scheme
Adrian McMillan, prosecuting the case, explained that the tampering process is sophisticated. The cards are initially empty, then tampered with undetectably, and re-lved. When a shopper loads money onto the card, the scammer or an associate can immediately steal the funds.
Broader Investigation
The suspect, Sun, is believed to have operated in multiple locations, including Arkansas, and phone records show extensive travel. His court-appointed attorney argued possession alone does not indicate criminal behavior. However, prosecutors believe Sun worked with others in a serious fraud case.
Target’s Response
Target acknowledged the issue, stating that store teams regularly inspect cards for signs of tampering. They noted that gift card tampering is a widespread problem across the industry.
FBI Involvement
Robert Tripp, in charge of the FBI’s San Francisco field office, discussed the scale of the problem, highlighting a well-developed secondary market for compromised gift cards. Scammers sell these cards online at a discount, making the cash virtually untraceable. This is an international issue, with U.S. buyers unknowingly laundering stolen money.
Prevention Tips
To protect against this scam, the FBI recommends buying gift cards from behind the counter or in locked cases, inspecting for tampering signs, and using the card quickly. Reporting stolen gift card money to the FBI’s Internet Crimes Complaint Center (IC3.gov) can help unravel larger criminal networks.