Buying Gift Cards for the Holidays? Beware of this ‘Card Draining’ Scam!
Don’t fall victim to a gift card draining scam this holiday! Here’s what to know.
Gift cards are one of the most popular holiday gifts and stocking stuffers, but if you’re planning on gifting a few this year, be alert.
In 2023, card-draining and other gift card scams amounted to some $217 million dollars, and the situation is critical enough that many states are trying to pass legislation to curb the fraud.
Gift card scams happen at all national retailers, usually from displays set out to show the gift cards. You may most recently, however, have heard both Target and CVS in the news related to these scams.
What are card-draining scams?
Last year in California, investigators discovered that bar codes were being removed from Target gift cards and then replaced with fraudulent bar codes. The scammers then would seal the gift cards back up, and return them to the rack. In other situations at other retailers, scammers may also use a magnetic stripe reader to steal the barcode.
When honest paying customers buy the tampered gift card, the cashier unknowingly loads the funds to the fake bar code. The scammers then jump in and use the balance – they even use onlineputer programs to alert them that they’ve been activated. As a result, your giftee’s gift card balance could end up with a zero value when they go to use it. 😞
Are you buying gift cards this holiday? Here’s our advice…
- No matter where you are shopping this holiday season, it is best to be alert when purchasing gift cards.
- To avoid fake activation websites, consider activating your card by phone.
- If you notice the package of your gift card appears to be ripped or tampered with in any way, notify a store employee or manager of the gift card issue and get a new one, or opt to send an eGift card instead.
- When possible, buy your gift card from a locked case or from behind a counter.
- Take a photo of the gift card you purchase and keep your receipt with the activation code.
- If you receive a gift card, try to use it right away.
- Report any fraud to the store of purchase and also to the Federal Trade onlinemission (FTC) via their website.
Don’t want to take the risk of buying a gift card? Try these other gift ideas instead.