Gift card fraud instore

powerful_Rogue

Pocketmoths said:

Thank you for the pep talk. I’ve exhausted Tesco phone line and social media. I’m so frustrated that some people get refunds and others don’t. I found the same issue in November in a bbc article and they said Tesco would be training staff . I can’t find the CEO contact, everything routes back to the helpline. 

I just found it straight away. Google 'tesco ceo email address' - Lists two email addresses. For some reason, even though the info is in the public domain, MSE don't like it being posted here.

Pocketmoths

Brilliant thanks , I could only find 2021 but I will try anyway depending on how it goes 

screech_78

I don’t understand the big deal about saying you’ll write to the CEO. Our branches will give customers the email address if they want. It’s not an issue. I wouldn’t have a job if customers didn’t contact our Chairman 🤦🏻‍♀️ 

And I’m not saying you don’t have the right to a refund by the way. Only saying that writing to the CEO isn’t going to have staff rolling over in fear. 

consumer_rights_now

My partner and I also separately bought fraudulent Amazon gift cards from a Tesco in London. Exactly the same issue with perfect looking Amazon gift card outer cardboard sleeves but then, when you open it, you find that some of the code on the gift card inside has been removed. Having dug around online, it turns out that this is a known issue. It has been a problem in the USA for some time (there are YouTube videos about it) and is now popping up in various locations across the UK. 

My partner managed to get Amazon to credit his amount to his Amazon account because he'd opened his card straight away and had contacted Amazon within a day and the fraudsters hadn't yet had the chance to redeem the value so credit was there to apply. I, however, am having to fight with Tesco after the usual repeated redirections and wild goose chases (i.e. go speak with Amazon, go speak with Blackhawk Network - a gift card supplier, go ask some guy down the road, go ask anyone anywhere else but here, etc).

We looked into the legal end of things and the legal position is clear on this... Tesco is solely liable and has full legal responsibility to issue an exchange or refund.

1. Tesco clearly sold a fraudulent tampered gift card to a consumer. Tesco may argue that there is no way of knowing that the gift card had been tampered prior to purchase. That is false. There is evidence of Tesco having sold these tampered cards in other instances already (yours; ours; others in this MSE forum - I'm too new so can't include links but search for "I’m absolutely disgusted with how Amazon has handled my gift voucher issue" and Already redeemed store bought Amazon gift card" ; plenty of Facebook and Reddit reports easily findable with an online search; and online articles such as this the main BBC article that pops up when you search for "Gift card draining scam"). Additionally, under the Consumer Rights Act, there is a 6 month burden of proof presumption that the item in question was faulty and it's for the seller to prove otherwise.

2. Every time any of us buys something from Tesco, we enter into a legally binding contract with Tesco. You paid Tesco money for an Amazon gift card of a specified value. Tesco did not provide its end of the bargain (i.e. a non-fraudulent gift card that could be redeemed at Amazon.co.uk). Under common law, Tesco is in breach of contract, the remedy for which should be an exchange or refund.

3. The Consumer Rights Act (CRA) fully applies also as this concerns a consumer contract. There's a little bit of a grey area because technically we entered into a contract with Tesco to buy a contract with Amazon (i.e. the contractual prepayment for Amazon store credit) but it's ultimately well settled that the CRA bites and Tesco is statutorily obligated to provide an exchange or refund. Plus, as noted above, the burden of proof is on Tesco, not the consumer.

The process for this is per Citizen's Advice. Seach for Citizen's Advice, Small Claims. Essentially, you raise the issue with Tesco (i.e. it's HQ customer service), setting out the facts and their legal obligations. If they do not acquiesce, you can make a claim in a county court. Citizen's Advice sets out all the information and steps, including a template for a Letter of Action, which you'd need to formally send by mail to Tesco HQ in advance of suing Tesco and having the small claims court make Tesco issue the exchange or refund. 

If you need to/want to contact people at Tesco, their email addresses are firstname.surname@tesco.com. You can easily find the names of their General Counsel (Kay Majid), head gift card people (Marc Blake & Paul Wilson) or whomever else you need to/want to contact using AI and/or LinkedIn.

By the way, after raising the issue with Amazon, I also received an email from Amazon, exactly like the one others have reported in the MSE forum, where Amazon, by clear insinuation and implication, effectively accuses family, friends or acquaintances of committing or being complicit in the gift card fraud. It's such a shame so many people in that one thread pilloried that forum poster. She and everyone she knew where of course entirely innocent and Amazon has evidently been adopting a disgraceful and, of course, wholly baseless claim to redirect blame and liability away from Amazon to consumers. If it were sent to a third party is would meet all the prerequisites of being libellous.

This also seems to be the mantra in the media (i.e. focusing on consumers asa victims rather than on the retailers not having robust enough supply chains and not accepting liability when they are clearly liable etc).

We are also raising with Trading Standards and Action Fraud for that reason. Tesco and Amazon are victims of the fraud too, but they are responsible for what they sell and for their supply chains, not us consumers. They need to be held to account.

user1977

And obviously, much easier if you just avoid all the complications of buying gift cards via third parties (unless you think the risk is worthwhile because e.g. you're getting a discount).

born_again

user1977 said:

And obviously, much easier if you just avoid all the complications of buying gift cards via third parties (unless you think the risk is worthwhile because e.g. you're getting a discount).

Would need to be a good discount to not buy direct from Amazon when it's a gift card for yourself or known family member..
Given how easy it is to buy either a direct credit to your account or a physical card for them to top up their account.

Time2Go_25

Also if purchasing a gift card in a store, check for sign of tampering before paying for it.

Grumpy_chap

There is an article coming up on BBC 1 in a short while about this subject.  It seems to be suggesting that it is not the stores, per se, that are doing this (nor, necessarily, the store staff) but individuals that access the cards on display and register the cards so that when someone makes a purchase the value is added to the card and the individual that previously registered the card can spend the money before the gift recipient can spend the money.

It also seems like something that has an easy solution.  Remove all the cards from display and only have "tokens" to pick up.  Then, when you pay at the check-out, take your receipt and the "token" to the Customer Services or Tobacco Kiosk or Bureaux de Change in store and they swap the "token" for an actual loaded gift card and mark the receipt as collected.  

consumer_rights_now

I've seen that theory online previously (people taking from shelves, tampering, putting back). Seems to be pure speculation though. I suspect it's a supply chain fraud -- people who have access to the cards at some point between the manufacture of the cards to the final display in stores (i.e. at warehouses, couriers, etc). It'll be interesting to find out how the fraud is being committed if it's ever uncovered fully, and I guess knowing that is what will then lead to a prevention solution... fingers crossed!