State Representative Joe Ciresi, representing the 146th District, has proposed a law to help people steer clear of falling prey to gift card scams, amid a rise in such incidents.
According to a statement from Ciresi's office, scammers are increasingly using gift cards to defraud people in Pennsylvania. These cards are easy to buy, tough to trace, and enable fraudsters to swiftly transfer money, making them a preferred means of payment for scammers.
At times, con artists pose as government agencies, legitimate companies, or even victims' relatives, creating a sense of urgency to coerce individuals into purchasing gift cards as payment. There has been a 50% surge in reports of gift card fraud on the Better Business Bureau's Scam Tracker in 2023.
Ciresi stated, "Last year, victims lost $217 million to gift card fraud, as reported by the Federal Trade Commission. In response to constituents sharing heartbreaking accounts of losing thousands of dollars due to these scams, I have introduced a bill to safeguard Pennsylvania's consumers from gift card fraud."
Ciresi's bill, H.B. 2186, would mandate that retailers selling gift cards display prominent signs warning customers about gift card scams wherever the cards are sold. Additionally, retailers would need to train their staff to recognize and respond to potential victims of gift card-related scams.
The Pennsylvania Attorney General's Bureau of Consumer Protection would be tasked with developing standard signs and training to aid retailers in enforcing these regulations.
Ciresi affirmed, "As scammers employ increasingly sophisticated tactics, it is crucial to educate the public and equip them with the necessary information to avoid falling victim to fraud. My bill aims to ensure that Pennsylvania's residents and retailers are vigilant against gift card fraud and stay cautious whenever asked for payment using gift cards."
