Mike White answers a question about gift card crime rings:

Q: You spoke about the crime ring with gift cards at the Atlantic City Show in October. What can I do to protect my business and myself against that?

A: The fraud happens frequently during the holiday season in places where gift cards are displayed in reach of the consumer. In a normal scenario, the card is brought to a register, a value is applied and the consumer gives the card as a gift. Unfortunately when a criminal mind gets involved consumers become victims and the issuers lose out.

The scam works like this: The crime ring sends in members to take pictures of the series of numbers on back of the gift card with their cell phones. The ring then waits a few days and calls in the numbers inquiring that they just received this card as a gift and wanted to know the balance on the card. The amount is given and the crime ring cashes in online with merchandise. When the gift card is legitimately presented, the bearer finds out the hard way that it has no value. Needless to say this is an embarrassing situation for both the presenter and receiver. This occurs at retail outlets and restaurant chains more than at independent restaurants.

However, as a consumer you should refrain from buying a gift card that is out in the open. To be protected from fraud, ask for a gift card that is out of sight below the counter or in the register.