Categories: Law, Accounting & TaxesNew York NewsNonprofitsSmall BusinessSports, Entertainment & TourismSubscriber Only

New state law to protect consumers from gift-card fraud goes into effect

New York Secretary of State Robert J. Rodriguez holds a press event at a retail store in June, to draw attention to a new state law to protect consumers from gift-card fraud. (PHOTO CREDIT: NYS DEPARTMENT OF STATE WEBSITE)

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 […]

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

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/.

Jornal Staff