Gu and Casimiro seek to protect seniors from scammers
According
to a 2022 survey
from the AARP, approximately 13
million U.S. adults have purchased gift cards for scammers. According to the
Federal Trade Commission (FTC), consumers reported losses of $233 million in
2021 to scams involving gift cards as the form of payment.
“We have seen an uptick in scam calls, especially ones targeted towards seniors,” said Senator Gu (D-Dist. 38, Charlestown, Westerly, South Kingstown). “This common-sense legislation will help alert people to a possible scam before they go through with the purchase of a gift card and lose their hard-earned money.”
Scammers
use gift cards as an easy form of payment that can be difficult for authorities
to trace. Often, scammers will “sell” products or services that do not exist
and ask for a gift card as payment or tell someone they are past due on a
utility bill and must make a payment in the form of a gift card or have their
services shut off.
The legislation
(2023-H 5732) would require any store that sells gift cards
to post a conspicuous notice at or near the point of sale that cautions the
purchaser about prepaid card scams and instructs the purchaser on what to do if
they suspect they might be a potential victim of such a scam. New York and New
Jersey have similar legislation.
“Unfortunately,
there are bad actors out there specifically targeting older Rhode Islanders,”
said Catherine Taylor, state director of AARP Rhode Island. “Lawmakers can help
thwart scammers by passing bills like this one that raise awareness and provide
critical education to consumers”
“We
need to take fraud and abuse seriously,” said Representative Casimiro (D-Dist.
31, North Kingstown, Exeter). “This bill will be a crucial tool in educating
consumers. By working together with retail establishments, we can better
protect Rhode Islanders from scams.”