Gift cards are a hugely popular gift, with almost half of people holding at least one right now. For beauty lovers, a Sephora gift card is often the perfect present. However, recent reports highlight a concerning issue: Sephora gift cards being drained of their value before they even get used. Understanding how to check your Sephora Gift Cards Balance and being aware of potential fraud is now more important than ever.
The Federal Trade Commission (FTC) has reported a significant rise in gift card fraud, with consumers losing over $217 million in 2023 alone. Gift cards are implicated in about 25% of all fraud complaints received by the FTC. This is particularly worrying for those who see gift cards as a convenient and safe gifting option.
Uli Kalessa from Arlington Heights experienced this firsthand when she gifted her 11-year-old granddaughter, Morgan, a $100 Sephora gift card for Christmas. Sephora was at the top of Morgan’s wish list, making the gift seem ideal. However, their excitement quickly turned to disappointment.
Just days after Christmas, when Morgan tried to use her Sephora gift card, she was met with bad news. “They said there’s a 0 balance,” Kalessa explained. Despite the store associate’s attempts to manually input the card information, the result remained the same – an empty gift card.
Kalessa later discovered numerous similar complaints online, posted on Sephora’s website, TikTok, and Reddit forums, some dating back over a year. Many users reported feeling helpless, stating that “Sephora does absolutely nothing” to resolve these issues. Sephora staff reportedly offered Kalessa no assistance in-store.
Sephora gift cards direct customers to LGCS Inc., a sister company, for gift card issues. Adding to customer frustration, the back of the card carries a disclaimer stating, “The value of this card will not be replaced if the card is lost, stolen, altered, destroyed or used without authorization.” This policy leaves consumers feeling vulnerable and unprotected against fraud.
Ray Clopton, president of LocalGiftCards.com, which manages gift card programs for thousands of small businesses, finds Sephora’s setup unusual. He noted the uncommon practice of separating gift card responsibility to a different company, potentially for liability reasons.
Clopton explained how hackers are exploiting vulnerabilities to steal gift card balances. A common method involves using automated bots to bombard the “Check Your Balance” pages on merchant websites. These bots attempt thousands of balance inquiries until they find a valid card number with a balance. Once a valid number is found, the hackers quickly use the value online.
The question remains: how do scammers obtain gift card PINs and card numbers in the first place? In Kalessa’s case, the Sephora gift card was readily accessible at the register, not securely packaged. Clopton suggests two main possibilities: physical tampering of card packaging in stores, or breaches in online databases where gift card information is stored.
After receiving no help from Sephora directly, Kalessa contacted NBC 5 Responds. Following inquiries from the news outlet, Sephora finally contacted Kalessa and provided a $150 e-gift card as compensation.
A Sephora spokesperson stated that the company “takes combatting gift card fraud very seriously” and reviews all reported incidents. They claim to have implemented measures such as gift card limits, employee training, and enhanced PIN security. Sephora also directs customers to their website for fraud prevention tips and advises those affected to contact their client service number. However, Sephora dismissed social media complaints as “not reliable or verified places for support.”
Despite Sephora’s assurances, Kalessa is now wary of gift cards, preferring to give cash in the future.
Key Takeaways and How to Check Your Sephora Gift Card Balance Safely:
To protect yourself from Sephora gift card fraud and ensure your gift card has the intended balance, consider these crucial steps:
- Check Your Balance Immediately: Upon receiving a Sephora gift card, check the Sephora gift cards balance right away. You can do this through Sephora’s official website or by calling the customer service number listed on the back of the card. Do not rely on third-party websites or apps for balance checks as these may not be secure.
- Be Cautious When Purchasing: Avoid purchasing gift cards displayed in easily accessible locations in stores. Opt for cards behind the counter or in secure display cases whenever possible. Examine the card packaging for any signs of tampering before purchasing.
- Purchase with a Credit Card: Using a credit card for gift card purchases can offer some protection. In cases of fraud, some credit card companies may offer refunds, although this is not guaranteed.
- Use Gift Cards Promptly: The longer a gift card remains unused, the higher the risk of fraud. Use your Sephora gift card as soon as possible after receiving it to minimize potential issues.
- Keep Your Card Secure: Treat your Sephora gift card like cash. Store it in a safe place and be mindful of its security, especially the PIN if applicable.
By staying informed and proactive, you can enjoy the convenience of Sephora gift cards while minimizing the risk of becoming a victim of gift card fraud. Always verify your Sephora gift cards balance through official channels and remain vigilant to protect your gift and your money.
