A new New York State law hopes to protect consumers from falling victim to gift card scams.

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The newly signed law is part of a package of laws signed by Governor Kathy Hochul in October 2021 that aims to protect New Yorkers from fraud and strengthen protections against fraudulent practices.

Under a new law, businesses that sell gift cards must display a notice at or near where any gift card or gift certificate is displayed or sold to warn consumers that fraudulent individuals may call and falsely represent themselves as a government entity or law enforcement officer and request payment via gift card or prepaid debit card.

Additionally, the posted notice must also inform New Yorkers that legitimate government entities will never ask for payment via gift card. This law is an important step in protecting New Yorkers from gift card fraud, which has become increasingly prevalent in recent years.

The new law in New York State aims to give consumers the information they need to avoid falling victim to these scams. By requiring businesses to display a warning about gift card fraud, consumers are more likely to take precautions and protect themselves from fraudulent activity.

New Yorkers need to remember that legitimate government representatives will never ask for payment by way of gift cards or prepaid debit cards. If someone requests payment by gift card, it's likely a scam. New Yorkers are encouraged to report fraudulent activity to the Federal Trade Commission or the New York State Attorney General's office.

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