CASTLE ROCK, Colo. — A Douglas County woman's gift card scam story caught our attention, not just because of how much money she lost but also because of how little the store that sold her the gift cards did to ensure it wasn't a scam.
"I love being a nanny," said Martha Fry, explaining why she panicked when a purported virus alert popped up on her computer. "When I called them, they told me that my IP address had been used to order child pornography out of China. I was terrified. As a nanny, I can't be and would never want to be associated with something like that."
In a convoluted scheme, Fry entered what's known as the "fear bubble," as the impostor on the other line ultimately convinced her to go to the nearest Lowe's to buy gift cards and transfer them to the scammer.
Police reports show she purchased $10,000 in gift cards, five $2,000 cards at once.
Fry said Lowe's employees didn't ask her any questions.
"I was relieved after that," she said. "I actually thought, 'Wow, I just dodged a bullet.' Little did I know, I took a big one."
Fry's case is all too common, according to Douglas County Sheriff Darren Weekly.
"We're seeing this daily. We're taking reports constantly," he said. "People are falling for this left and right."
Weekly said some businesses have responded to gift card scams by posting small warning signs, like the one we saw at the Lowe's where Fry went.
Other companies do more, such as capping the dollar amount one customer can purchase at a time.
"It's really incumbent upon a lot of these corporations to make sure that the front-line sales staff are trained to look out for these types of scams," said Weekly.
Colorado does not have consumer protections around gift cards, but other states do. In New Jersey, a 2021 law requires stores that sell gift cards to "train employees on how to identify and respond to gift card fraud."
"I would love to see stronger protections in this arena, " said Mark Fetterhoff with AARP in Colorado, who said gift card fraud is a growing concern.
A 2022 AARP survey shows 34% of U.S. adults say they or someone they know has been targeted by scams seeking payment by gift card.
"I think any step that we take towards saving consumers money as part of these scams would be a positive one," said Fetterhoff.
At first, Fry said that a Lowe's manager told her she might get her $10,000 back, and she was hopeful, but the company has since said the money will not be refunded.
Lowe's did not respond to our request for comment about employee training or capping gift card amounts.
But Fry said businesses could and should do more to protect their customers.
"Lowe's profits from this. They get 10 grand in a blink of an eye. The bank profits. The Visa profits," Fry said. "So the loser here is the victim, and I just want the public to be aware."
