SHOPPERS have been warned to double-check gift cards before purchasing them after an international organized theft ring was uncovered by police.
Six men from China were caught cutting vouchers out of their sleeves, redeeming the money, and then returning them for an unlucky customer to buy, cops revealed.
Six men from China were arrested for the scam, and Homeland Security is investigating a link to Chinese organized crime rings[/caption]
All six men targeted the same Kroger store in Louisville, Kentucky[/caption]
The scheme was discovered by Homeland Security in Louisville, Kentucky, who saw the brazen thieves tearing through cards in Kroger surveillance footage.
The mystery deepened after cops arrested the crew and found all of them were Chinese nationals who had ties to international money laundering organizations.
One week ago, police surmised the sly crooks had stolen at least $1 million worth of vouchers.
“It’s only becoming more prevalent,” Bruce Passmore, assistant special agent in charge for homeland security investigations in Kentucky, told ABC affiliate WAVE.
“This is not an HSI problem. It’s not an FBI problem. It’s not a Secret Service problem. It’s not a state and local problem.
“It’s an everyone problem.”
So far this year, six men have been caught targeting the same Kroger in Louisville, but it’s unclear how involved they are with one another.
That’s why Homeland Security started a task force called Project Red Hook to investigate the ties with Chinese crime rings and determine where the money is going.
“Whether or not the gift cards scam is solely perpetuated by the Chinese Government, I don’t think we have that level of fidelity,” Passmore said.
“But I think it’s safe to say the few things that go on in mainland China that the Chinese government is not aware of.”
For now, shoppers can protect themselves from heartless theft by double-checking gift card sleeves before they buy.
If a sleeve has razor marks on the back, is held together with tape, or has the barcode scratched off, it’s best to take it to the store’s management and report the issue.
In 2024, American’s will spend a massive $200 billion on gift cards, and $1 billion of that money is going into the pockets of scammers, Passmore warned.
Not only is this money being ripped from consumers, but it could go toward horrifying crimes like human and drug trafficking.
What to look out for when buying gift cards
When buying a gift card, be sure to check the back of the packaging.
If it is ripped or damaged in any way, it could have been opened by a fraudster.
If you buy a gift card and the redemption code on the back is damaged and unusable, call the store where you purchased the card and contact the gift card company immediately.
Be sure to also keep the gift card receipt.
“When you take the scope of the fraud that we are seeing, that has an impact on day-to-day American’s wallets,” said Passmore.
Shoppers should always keep their receipts if they’re buying a gift card.
It’s also key to hand off the receipts to recipients if you’re buying the card as a gift.
While snagging a voucher from grocery stores is convenient, the safest way to purchase a card is directly from companies.
The gift card drama comes after a Walmart shopper lost $300 on a voucher from another scam.
Plus, anyone who gets an eerie phone call should hang up immediately and call their bank.
