Buying Last Minute Gift Cards for Christmas? Read This First!
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, and the situation is critical enough that many states tried to pass legislation to curb the fraud.
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 computer 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…
- 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 Commission (FTC) via their website.
Don’t want to take the risk of buying a gift card? Try these other gift ideas instead.
We had this happen to us several years ago with a $100 gift card. We used it once for a small purchase. The next time we went to use it, the card balance was zero. The card was purchased online. We also unknowingly purchased fake gift cards online and when we went to use them, the restaurant told us they were not legitimate. Be careful of that, too. Not all of Amazon’s sellers can be trusted. My view now is that cash is a better gift than a gift card…it allows the person to buy whatever they want wherever they want to.
So sorry to hear that. Thanks for the heads up on your experience!
Thank you for always looking out for us.
You’re very welcome!