Ohio leads nation in gift-related scam reports

CLEVELAND, Ohio (WOIO) - Ohio leads the nation in gift-related scam reports per capita, according to a new report from Gourmet Gift Baskets that analyzed fraud data during the holiday shopping season.

The Better Business Bureau Scam Tracker has received 10,000 verified gift scam reports, with Ohio recording the highest rate of incidents, at 5.46 per 100,000 residents.

Ryan Abood, CEO of one of the nation’s largest gift basket companies, said his industry provides a unique view of multiple scam types affecting consumers.

“We have a ton of ‘card not present’ scams, meaning customers are using stolen credit cards and attempting to place orders,” Abood said.

Gift cards appear in more than 60 percent of gift-related scam reports, making them criminals’ preferred tool for fraud.

“As an internet retailer we see fraud from fake websites, counterfeit websites, too good to be true, fake competitors,” Abood said.

The scams range from romance fraud and sophisticated financial schemes to impersonator scams and package theft.

Average losses range from $500 to $800 per incident, with some cases reaching $1,200.

Abood said gift cards function as cash equivalents, making them attractive to scammers.

“And then we’re not helped by the fact that it’s so easy to move gift cards on the secondhand market. There’s robust exchanges where you can get 90, 95 cents on the dollar for a gift card and get the cash the same day,” he said.

The Better Business Bureau encourages victims to report scams regardless of loss amount to help track and stop criminal activity.