Call for sale limits on iTunes cards

Consumer Protection is urging retailers of iTunes gift cards to enforce limits on sales and erect warning signs at the point of sale after two Bunbury couples lost a combined total of almost $60,000 to scammers.

The Bunbury Herald last week reported on a couple in their 70s who bought $23,900 in iTunes cards after receiving a call from scammers claiming to be from Telstra and allowing them access to their computer and bank accounts.

The couple was asked to help in catching a scammer by purchasing the iTunes cards over two days, spending a total of $23,900.

Following consultation with some major supermarkets, the stores agreed to set a limit on iTunes purchases of $1000 or $500 per transaction.

However, officers from Consumer Protection recently carried out a “mystery shopper” exercise at four Perth stores which found the limits were enforced at only one of the stores visited.

At the other three stores, staff either carried out multiple transactions at the checkout or used a till that did not impose the limits.

Commissioner for Consumer Protection David Hillyard said such actions circumvented attempts to curb losses.

“It’s disappointing that the limits agreed to at the corporate level and incorporated into the checkout system are not being effective at the store level,” Mr Hillyard said.

“Retailers need to better inform their store staff as to the reasons for the limits and give strict instructions not to over-ride the limits that have been put in place.

Scam payments by iTunes cards doubled last year to $120,000 and we fear the increasing trend will continue this year.

Reports from scam victims and the results of our short mystery shopper exercise also show that signage either at the point of sale or the checkout is ‘hit and miss’, with most stores not having any warning signs at all.

“We will continue to work with the retailers in the hope that a more effective effort is put in place to alert potential scam victims of the scam and hopefully prevent any further losses.

Information and advice on scams is available at www.scamnet.wa.gov.au.