If you use prepaid credit cards or plan on giving them as gifts this holiday season you may want to learn about the latest scam targeting them.

Winnipeg Police warn that fraudsters are targeting prepaid credit cards sold at local retailers across the city.

Here is how the scam works

The fraudsters steal several inactive cards in their original packaging from a store. They then replace the cards in the packaging with either used prepaid cards or blank cards. They then go back to a retailer and place the cards back on the rack.

Most prepaid credit cards use a magnetic strip on the packaging (not the card itself) when they are activated at retailers.

Fraudsters then try to use the card that was activated via the packaging a few days after they had returned the fake cards in the now activated packaging to the store.

Often at this time of year, it takes days or even weeks before the fraud is discovered.

Police advise that if you’re going to buy a prepaid credit card check the packaging carefully. If you notice anything unusual let a store employee know.

Once you have made the purchase you may want to open the packaging to confirm the card is authentic.

© News4.ca 2020