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Posted: 6:00 a.m. Wednesday, Jan. 9, 2013

New gift card scams hurt consumers

Plus, you can turn unwanted gift cards into cash

By Clark Howard


Consumerist.com reports there are a number of scams going on where crooks have found a way to steal value from gift cards before they're sold.

"Sometimes this means scratching off the area on the back of the card to reveal the code. It could also mean peeking down the sleeve of the card to read and record the number," the website reports.

"Then, right after the holiday starts, the scammers begin checking online and by phone to see if these cards have been activated...and proceed to drain all the value from the card."

This is bad news all around.  Use those gift cards up as soon as you get them to protect yourself!

Or try buying them from a legitimate online seller that vouches they'll work for up 180 days after purchase (depending on e-tailer). Such websites include CardPool.com, GiftCardGranny.com, and GiftCardRescue.com.

You can also use these sites to sell unwanted gift cards. Sellers can typically expect to make about 70-80 cents back on the dollar. (Need I say more about why gift cards stink?!) Buyers, meanwhile, can find gift cards discounted up to 30% off the face value. The websites themselves make money on the buy/sell spread.

So don't let that unloved plastic gather dust in a drawer this season. Turn it into some real money!

 
 

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