Gift Cards and Employee Retail Theft
Retail theft by employees has always been a problem, but gift cards make it easier:
At the Saks flagship store in Manhattan, a 23-year-old sales clerk was caught recently ringing up $130,000 in false merchandise returns and siphoning the money onto a gift card.
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Many of the gift card crimes are straightforward, frequently involving young sales clerks and smaller amounts than the Saks theft. Among the variations of such crimes, cashiers often do fake refunds of merchandise and then, with the amount refunded, use their registers to electronically fill gift cards, which they take. Or sometimes when shoppers buy gift cards, cashiers give them blank cards and then divert the shoppers’ money onto cards for themselves.
That last tactic is particularly Grinch-like.
Andrew • January 7, 2010 8:02 AM
I stopped using gift cards at all after the second time an employee didn’t load the card, I found out, confronted the manager with a receipt and was told to my face that I was the thief because the card numbers did not match.
I was once given by a trusted friend a $100 gift card loaded at a leading supermarket for use at a national retailer. It had a zero balance. The manager at the retailer commented, “You got this at Safeway? We get these all the time and we have no way to investigate. Sorry.” My friend contacted the store manager and after over an hour of argument, apparently including review of cameras and the threat of small claims court, got his money refunded in cash. Not worth the time.
The only solution is gift card dispensers, much like ATM machines except that they dispense gift cards. Otherwise gift cards present far too much temptation towards theft. (At that, they are more traceable than cash refunds, which explains why many retailers use them for.)
(BTW: Thanks again for nothing, Safeway supermarkets. Refunding me the $40 you stole would have cost less than the bad PR from this comment.)