Chester County police have arrested 33-year-old Dong Shao, accused of orchestrating a gift card scam at Giant food stores in Westtown and East Goshen townships. The arrest comes as shoppers grow increasingly cautious about purchasing gift cards following the scam.
Witness Judith Mace, from Chester Springs, shared her experience: “I just bought one, I just bought a gift card,” indicating a common practice that is now under scrutiny.
According to authorities, Shao’s method involved scratching off the protective covering on gift cards to reveal their codes, then replacing the covering and returning the tampered cards to the shelves. Once a customer purchased one of these cards, Shao allegedly drained the funds using the recorded codes before the customer had the chance to use them.
The Federal Trade Commission (FTC) has identified this technique as “gift card draining,” which has become a widespread problem for retailers. In 2023 alone, there were over 41,000 reports of gift card fraud across the country, leading to losses nearing $217 million.
In light of this scam, customers are now taking extra precautions when buying gift cards. East Goshen resident Sam Crispin remarked, “I generally get them directly from a cashier behind a counter. To go to these multiple racks and get them from there, no I don’t do that.”
Cybersecurity expert Peggy McCoey, an assistant professor at La Salle University, provided advice for those who may fall victim to such scams: “I’d first go back to the store and then I would call the organization that issued the card.” This approach is what led to Shao’s arrest, as numerous customers reported their cards had no funds. Police subsequently reviewed surveillance footage to track down Shao.
McCoey also recommended purchasing gift cards that allow buyers to control the amount loaded onto them. She noted that scammers often target cards with fixed values, making them easier to manipulate.