CLEVELAND — Many people have a love-hate relationship with gift cards. The part everyone hates is when they’re used to scam people. But now, a significant settlement with computer giant Apple could very well put money back into victims’ pockets.
In 2016, someone called Earl Hankins said he was from the federal government and could help Earl pay for barber school if he bought $1,000 worth of iTunes gift cards. Hankins got scammed.
“It’s really bad. I mean, you taking people’s money away and you not giving them anything,” said Hankins.
That was the same year the Federal Trade Commission warned about the rise of iTunes gift card problems. And that same time frame is mentioned in a lawsuit settlement “alleging that Apple did not provide consumers with refunds with a certain type of gift card scam.”
Apple said it did nothing wrong. The company’s settlement? $35 million.
“I think it’s really important,” said Shelley Hunter, who runs websites about gift cards.
She told us the lawsuit is the first she’s seen that really holds a company accountable for these kinds of schemes.
“Gift card scams are underreported because people are embarrassed and, perhaps, this lawsuit will empower them to come forward,” said Hunter.
If you were scammed between 2015 and 2020 and iTunes cards were used, you can visit giftcardscamsettlement.com to find out more and file a claim.
Unfortunately, gift card scams, in general, are alive and well. Just in the past few weeks, we’ve told you about people losing money. The Better Business Bureau said to be careful.
“Gift cards can be a tricky purchase,” said Sue McConnell.
She is the president and CEO of the Cleveland BBB. She told us consumers should check if the card’s packaging is damaged if the pin is scratched off, and if someone tells them to pay a bill, that’s a big red flag.
“Gift cards are for gifts. They’re not for payments,” said McConnell.
Hunter would like more changes overall in gift card transactions.
“Gift cards are anonymous and I think we’re done with that,” said Hunter. “It’s time to start connecting cards to the person who purchased the card.”
All are good suggestions because Hankins told us his scammer was very good at his job.
“He did sound convincing,” said Hankins.
Hunter told us that to file a claim, people must prove they bought the card under duress, gave it to someone they didn’t know and tried to get help from Apple or law enforcement. The deadline to file is Oct. 15.
