Wisconsin BBB discusses how retailers address rising gift card scams during holiday season

MILWAUKEE (CBS 58) -- As the holiday shopping season intensifies, retailers are increasingly focused on combating gift card scams. Jim Temmer, President of the Wisconsin Better Business Bureau, joined us on Monday, Dec. 4 to discuss the urgent need to address this growing threat.

A recent study by the BBB reveals a significant rise in scams involving gift cards as a preferred mode of fraud by perpetrators. This update to their 2021 study delves into patterns of reports and financial losses.

Temmer noted that 48% of people prefer gift cards as gifts, a jump from 2022. However, he warned of the escalating risks associated with these convenient gifts. According to BBB research, fraud reports involving gift cards surged by 50% in the first three quarters of 2023 compared to the same period last year. These scams often involve convincing consumers to use gift cards for payments, making them susceptible to fraud, particularly in online transactions.

Contact the Wisconsin BBB for more information.