Windsor Senior Scammed for $275 in Gift Card Fraud Incident

A Windsor, Ontario, senior has vowed never to purchase gift cards again after falling victim to a scam that drained $275 from his gift card purchases. Mark Duguay, 66, expressed embarrassment and frustration over the incident, which unfolded earlier this month when his seniors’ euchre club decided to present gift cards to their key organizers as a gesture of appreciation.

The club collected $275 to purchase five Tim Hortons gift cards, each valued at $55. Duguay bought the cards from a local Dollarama store and presented them to the recipients during a gathering on December 10, 2023. The next day, however, each of the five recipients returned to him with their cards, stating they could not be redeemed. Duguay discovered that all the cards displayed an “access denied” message when he checked them himself.

Upon realizing he had been scammed, Duguay returned to Dollarama to seek a refund, but the store directed him to Tim Hortons for resolution. “They kept saying, ‘There’s nothing we can do,'” he recounted, highlighting the challenges he faced in proving that the cards had not been used by the recipients or himself.

Dollarama’s statement to CBC Windsor noted that its customer service teams handle gift card-related issues on a case-by-case basis, as each card issuer has specific policies regarding reimbursement and replacement. The retailer emphasized that while it implements measures to reduce gift card fraud, its ability to prevent such activity is limited once the transaction is completed.

Jennifer Matthews, CEO of the Better Business Bureau for Western Ontario, commented on the incident, stating that Duguay’s experience is “unfortunately, not an uncommon experience, especially at this time of year.” The Better Business Bureau has issued warnings about a scam known as “gift card draining,” which typically involves scammers tampering with the card codes in store before returning them to the shelf. Once purchased, the scammers can access the funds before the buyer even realizes there is an issue.

Chuck Bell, advocacy programs director for Consumer Reports, advised consumers to inspect gift cards for signs of tampering, such as damage to the protective strip on the back. He noted that as scamming techniques become more sophisticated, it may not always be physically evident that a card has been compromised. “It could also be a hacking problem,” he explained, suggesting that consumers consider ordering gift cards online or only purchasing those stored behind the counter to minimize risk.

While the five recipients of the Tim Hortons gift cards have been understanding, Duguay feels a sense of guilt towards his euchre club, especially towards those who contributed to the $275. “It’s like I’m the one who stole the money,” he lamented. “They all know I got scammed. But at the end of the day, how do I explain that?”

Reflecting on the ordeal, Duguay declared, “I’ll never buy a gift card, ever again.” His story serves as a reminder for consumers to remain vigilant and informed about the risks associated with gift card purchases, particularly during the holiday season when scams tend to rise.