A $1,000,000 gift card scam has been uncovered by cops after a Kroger customer was caught swiping vouchers from shelves.
Four men have been accused of tearing out cards, stealing their value, and then putting them back on shelves for unsuspecting shoppers to grab.
Cops say the men tore the gift card out of the package, redeemed the value, and then put it back[/caption]
Officials warned shoppers to always check whether a package has been tampered with before purchasing anything[/caption]
The alleged thieves were caught after one was seen pilfering through a gift card aisle at the supermarket in St. Matthews, Kentucky, outside Louisville.
They are all Chinese citizens, and their names are Chaoming Lin, Zhiqiang Huang, Huixing Yu, and Tianlong Chen. They were arrested on Saturday.
So far, the men are facing hundreds of charges, and St. Matthews Police Chief Barry Wilkerson said they’re looking into what the money was used for.
“Is it tied to terrorism? I don’t know,” he told CBS affiliate WLKY.
“That’s why we turn these cases over to the federal agencies so they can get a better look and a better grasp of what or how deep these cases are.”
The United States Department of Homeland Security said the stunt is part of a crime scheme they’ve noticed in Chinese immigrants.
To avoid capture, the four men allegedly targeted stores in Kentucky, New York, Pennsylvania, and Ohio.
According to retail experts, Kentucky is in prime territory for shoplifting rings because it borders so many major states.
“Kentucky seems to be a center point just because we have three major interstates that crisscross the state,” Kentucky Retail Federation spokesperson Steve McClain said.
McClain is advocating for a crackdown on the issue, saying it can result in little jail time.
Chief Wilkerson agreed, saying, “Most of these cases are amended down, sadly, just to get them through the process.”
The accused thieves have been charged with 999 counts of criminal possession of a forged instrument.
Consumers can protect themselves from gift card fraud by taking special care when purchasing vouchers.
First, make sure to inspect the packaging and double check it hasn’t been tampered with.
Expert Advice: How to protect yourself from fraud
Craig Costigan, the CEO of fraud experts NICE Actimize gave the following tips to readers of The U.S. Sun on how to stay safe from fraudsters.
- As the saying goes, trust but verify. Always question your text and email communications. It may not be from who you think it is. Look for giveaways that it is a scam email. If your bank contacts you about a fraud via a text or email, call the number on the back of your credit or debit card to contact the fraud department directly – much safer than giving data to an impersonator.
- Protect your personal identifying information such as social security cards, your blank checks and other IDs.
- Always be vigilant. Even the safest and most careful among us have encountered fraudsters – we survived
because we reported the activity immediately to our providers, changed our passwords and checked our credit reports for unusual activity. - If you are not applying for credit, you might also consider placing a freeze on your credit reports, such as Experian, TransUnion and Equifax, so fraudsters can’t open accounts in your name. You can easily unfreeze your credit when you want to open a new account.
The alleged thieves caught in Kentucky resealed the vouchers, but a quick glance easily revealed the tape hastily pasted on the back.
Shoppers should also keep their receipts and hand them off to any recipients if it’s a gift.
This way, they can report the fraud to the store and get their money back.
And finally, customers can always purchase gift cards directly from brands instead of picking them up at supermarkets.
Anyone who believes they’re a victim of gift card fraud should report the issue to their store and the gift card company.
They can also tell the Federal Trade Commission and the police.
The gift card drama comes after a Walmart shopper lost $300 on a voucher thanks to another scam.
