Over three days a man and a woman who remain unidentified bought $51,128 in gift cards and merchandise which the clerk:
- Allowed them to do entering card numbers, rather than swiping actual cards
- Above the store limit of $50 that a cashier would normally be able to process
The cashier was in on the scam:
Mitchell told police that the two were strangers who approached him at the store and offered him $500 for every $20,000 that he would allow them to purchase. Mitchell ultimately took a $1,000 cut from the transactions, according to the report.
He told police that they would coordinate days and times when Mitchell would be working in order to buy the gift cards. The cashier would accommodate the pair and sell them gift cards valued at more than the $50 limit that line cashiers are permitted to sell, the report said.
There are two major factors which cause stores to tighten policies on purchase of gift cards.
- That these financial instruments are used for money laundering.
- That they are used to perpetrate credit card fraud.
Customers earning frequent flyer miles are generally very very low on the list of priorities, although occasionally a store will determine that the products aren’t being used as intended and aren’t profitable to offer when high transaction fee cards are being used to purchase the low margin products without other offsetting purchases to accompany them.
(HT: Robert G.)