ALBANY, N.Y. — A new state law to protect consumers from potential gift-card scams went into effect on June 20. All businesses selling gift cards are now required to display a notice at or near where any gift card or gift certificate is displayed or sold to caution consumers about gift-card fraud. Requesting gift cards […]
ALBANY, N.Y. — A new state law to protect consumers from potential gift-card scams went into effect on June 20. All businesses selling gift cards are now required to display a notice at or near where any gift card or gift certificate is displayed or sold to caution consumers about gift-card fraud.
Requesting gift cards as payment has become increasingly popular with scammers as funds are nearly impossible to trace, according to the office of New York Secretary of State Robert J. Rodriguez.
Nearly 65,000 consumers filed a complaint related to gift-card scams, equating to a total loss of $228.3 million, per the U.S. Federal Trade Commission in 2022.
“With the number of gift card scams on the rise, it’s more important than ever to educate consumers so they know that gift cards should only be used for gifts, not to make payments,” Rodriguez said in a release. “This new law requiring warning signage where gift cards are displayed or sold will help to reduce the success rate of these scammers and protect consumers’ hard-earned money.”
Businesses can obtain a model notice from this website: https://dos.ny.gov/business-resources/.