An elderly couple was recently scammed out of thousands of dollars, promoting a warning to the public about an ongoing issue.

The Better Business Bureau said the couple received a call at 7 a.m. one day from a person claiming to be an investigator with their bank.

The man, who identified himself as George Atkinson, told them there was fraudulent activity on their Visa credit card. Among the purchases he said were made was $1,000 in groceries from a store in the U.S.

The BBB says the man told the couple he needed help to catch the culprit, and asked them to buy Google Play gift cards which would somehow be used to catch the person using their card data.

At first, they bought cards worth $400, then shared the redeem codes with the person they believed to be an investigator. The scammer later transferred $2,000 to their account, which made them believe there was a legitimate investigation through the bank.

But he then called them and asked them to buy more cards, saying six people were involved in the fraud case and the gift cards would help catch them.

They were told to go to three stores near their home, which they were told had gift cards of higher value in stock.

"They made a total of 4 trips to 3 different retail stores to buy more gift cards, and by the time they caught on to the scam, they spent a total of $8,300," the BBB's statement issued Wednesday said.

The bureau was called to investigate, and discovered the couple's computer had been hacked. That's how the scammer knew their address, the stores near their home and information about their bank accounts. He also knew their credit card number.

The $2,000 he'd transferred to them had come from one of their other accounts, and used Microsoft Word to leave messages on their computer when they went to buy the cards.

One of the messages was, "Are you home yet?"

The BBB's manager for community and public relations for Mainland BC said gift card scams are a growing trend.

"Scammers are posing as loved ones, government agencies, public utility companies, financial institutions, recognized brands, businesses, and even law enforcement," Karla Davis said.

"They are demanding gift cards as payment for services, debts, taxes, bail, fees to collect sweepstake and lottery prizes and in this case, to help with an ongoing bank investigation."

More than 1,000 reports of gift card scams were received by the BBB last year. The bureau says a red flag for those who think they might be the victim of a scam is being asked to share the PIN at the back of the card.

In many cases, scammers ask for specific brands including iTunes and Google Play. Many will also suggest the buyer goes to several stores, and that they not tell anyone why they're purchasing the cards.

"With cash, you are typically required to meet in-person to make any exchanges, which is least ideal for a scammer. With a credit card, the funds may be traced and the bank may be able to stop the transfer of funds. However, a gift card is like cash. Once it is used, they have access to the funds immediately, the transaction is untraceable and irreversible and they can remain anonymous," Davis said.
 

BBB's tips to avoid being scammed

  1. Look at the time of a call. Banks and other businesses rarely make calls outside of business hours.
  2. To be sure you're speaking to your bank and not a scammer, hang up then call the number on the back of your bank card.
  3. Be aware that banks do not ask clients to participate in investigations. If they ask you to spend money to help with a case, it's a scam.
  4. Gift cards should only be used for gifts, not for payment. If someone asks you to buy a card and share the numbers on the back, it's a scam. Reputable companies and organizations wouldn't ask for payment using gift cards.
  5. Don't buy gift cards for people you don't know, including those you've met online but not in person.
  6. Register your gift card if possible, making it easier to track. This may also protect the money stored on it.
  7. Watch for pop-ups on your computer or other electronic device. If you see something unusual, including a warning about a virus, restart the device. Consider buying anti-virus software or taking your computer to a reputable tech support company for inspection.
  8. Be wary of links in unfamiliar emails. Look at the email address, as scammers may pretend to be a loved one or trusted business. These links can lead to fake websites that download viruses and other malware.
  9. If you think you've been a victim, report it immediately to the Better Business Bureau or the Canadian Anti-Fraud Centre at 1-888-495-8501. Reports can also be made to the company that issued the card or to the retailer where it was purchased.