My DH was given two Amex gift cards on a separate occasion in the past two years. We never used them. I checked them today and they both been drained to zero by someone using PayPal. Same account in multiple transactions on the same day on one card and few different PayPal accounts one month later on another card. Is there a way to get money back if we didn’t purchase those gift cards? Will it helps if the person who purchased cards contact Amex? It has been over 90 days if it helps
Same happened to DH - and they were not small amounts. I think his were used on amazon. No recourse that we found (he called, etc.).
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Out of curiousity, how did the culprit get access to the funds associated with the card? Was the PIN and other security details on scratch-off portion on the card? How else would the perpetrator gain access to the funds?
If it wasn’t scratched off, I would go back to the card issuer (I guess AmEx in this case) and press your case. That would represent a flaw in the card’s security, IMO, and AmEx should take responsibility.
It doesn’t have scratch off. It’s like a regular Amex card just gift card. I found a lot of information about these types of things online but can’t find anything how to recover funds
Do you (or Amex) know how the card was activated?
ETA: This seems relevant:
What should I do if my Gift Card is lost or stolen?
Please know that refunds will not be issued for any amount that is debited from a lost, stolen or improperly used Gift Card prior to the time you notify us.
Yes. I don’t think we will be able to get money back. The card is not lost or stolen. We still have it
It’s the “improperly used” language that appears to be the problem. I hope Amex can at least tell you how the card was activated. That might give you a slight crack in this.
Best of luck.
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Amex will not replace the stolen amounts.
There were a bunch of reported “drained” gift cards in our area for quite awhile. Folks were buying a card (say American Express) for x$ - step outside to activate it, and it was already emptied within the time purchased and activated. I haven’t a clue how that happens but I stopped buying gift cards because of it. I used to get them for my nephews.
What stinks is the card companies won’t do anything about it.
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Apparently it’s common; I found recent news stories around the country. But AmEx isn’t helping and reporters can’t get answers.
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I’ve gotten in the habit of immediately depositing gift card funds to my Amazon account.
Gift cards are a really terrible near-scam IMHO. We never give them but do sometimes receive them.
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We had this happen with a Visa gift card my mother gave my D24 for her birthday last year. It was the Vanilla Visa brand with a value of $100. My daughter filed a claim and submitted some documentation and about a month later she was given a new card for the full amount.
After that experience, we also have started using gift cards to reload our Amazon gift card balance immediately upon receipt, and then I just put the cash in the kids’ bank accounts. Of course, that won’t help for the situation above where the card was drained immediately after it was purchased and activated.
How do you transfer balance from gift card to Amazon and then to bank account? For Amazon you probably just purchasing Amazon cards and add them to your account but how you convert it back to cash?
I’m sorry, I didn’t explain our solution very well. I am not able to convert any of the gift cards to cash, unfortunately. It’s just easy enough to use the Visa gift card to reload an Amazon gift card, then I use my Amazon gift card balance instead of my debit card when making a purchase. Since we buy plenty of items from Amazon each month, it’s a good way for me to use up the gift card immediately before any scammers can drain the funds. It would be a lot easier if the gift giver would just write a check or Venmo my kids, but that feels even more impersonal than a gift card (according to grandparents, at least).
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Given these two VERY important articles, perhaps OP might want to go back to AmEx and say they are aware of these and keep pressing. It sounds like an inside job, possibly. You shouldn’t be responsible for that.
AmEx and InComm might be looking at a class action lawsuit if they don’t resolve this.
If nothing else I would think they’re complicit by not adding additional security features that would keep this from happening -
After thinking about it, you not just absolutely right, but you are absolutely, absolutely, absolutely right.
The gift card issuers make a fortune in these cards, AFAIK.
For example, just imagine the “float” on the cash used to buy these cards that AmEx is getting. AmEx has access to interest-free money, and oftentimes, not all the money is ever used on a gift card. Plus, most of these cards have fees associated with loading the cash that can add a few percentage points to the total purchase price.
I have no sympathy for AmEx at all given how much they are probably making off these cards. I have the world of sympathy for the OP, and I wish them the very best in hopefully pursuing this with AmEx. It is grossly unfair.
Now that it appears it’s a systemic problem, I won’t buy a card in the store again, regardless of the issuer. Thanks to all here for opening my eyes as to how risky (and costly) these cards can be. I will also let my family know to be extremely wary of purchasing gift cards.
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Just want to add, that Amex gift cards purchased online get mailed in Amex window envelopes and have no scratch off security. All information is printed on the front of the card
Yikes. I was not aware of the risks.
Tangent question - do all places take gift cards? I had a Kohls/Black and Decker rebate in form of a gift card and realize now it is still in my wallet.
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Yes, most places (those that accept Visa) will take your gift card - I suggest you register it right now & then spend it.
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