Gift cards are a popular choice during the holidays, but they are also a frequent target for scammers, according to the Better Business Bureau (BBB).
A scheme known as “gift card draining” allows thieves to steal funds from unsuspecting buyers, leaving gift cards empty.
Scammers tamper with gift cards displayed in stores by using handheld scanners to record card information. They periodically check the card’s balance after it is activated, using the information to shop online, create counterfeit cards, or transfer funds to their own accounts.
One victim shared their story through BBB Scam Tracker, describing how a tampered barcode sticker was placed over the genuine barcode on a gift card. The funds were loaded onto the scammer’s account, leaving the card buyer without any value.
Tips to Avoid Gift Card Scams:
- Inspect packaging and barcodes: Before purchasing, check for any signs of tampering, such as wrinkles, tears, or exposed PINs. Run your finger over the barcode to ensure no sticker has been placed over the original. If the packaging looks suspicious, choose another card and notify the store’s customer service.
- Consider buying online carefully: Purchasing gift cards online directly from a merchant’s official website may reduce risks. Avoid websites offering gift cards at steep discounts, as they may steal payment information. Look for the BBB Seal or verify the retailer’s legitimacy on BBB.org.
- Be cautious when checking balances: Some websites claiming to check gift card balances are scams designed to steal your card’s ID number and PIN. Use only the retailer’s official balance-checking service.
- Register and use the card promptly: If the retailer allows, register your gift card and change the PIN. This provides added security and helps protect funds if the card is lost or stolen. Use the card as soon as possible to minimize the risk of theft.
- Treat gift cards like cash: Report lost or stolen cards immediately to the issuer. Most cards have a toll-free number for this purpose, which can also be found online.