Avoid gift card draining scams this holiday season

By: The Roseville Police Department 

Planning to give a gift card this holiday season? They’re convenient, versatile, and unfortunately, a popular target for scammers. “Gift card draining” enables thieves to steal the funds before the recipient can use the card. Here’s how the scam works and how to protect yourself.

How gift card draining works

Scammers tamper with cards before they’re purchased. Common tactics include:

1. Stealing card info: Thieves remove cards from store racks, record the numbers and PINs, often by taking quick photos, and put them back.

2. Swapping with fakes: In some cases, they replace legitimate cards with high-quality counterfeits.

3. Monitoring activation: After tampering, scammers track the card online or use bots to check when it’s activated.

4. Draining the balance: As soon as money hits the card, they spend or transfer the funds instantly

By the time the gift is unwrapped, the balance is usually long gone.

How to Protect Yourself

Retailers are working to improve security, but you can take simple steps to reduce risk:

1. Inspect the card and packaging: Look for torn packaging, peeled or scratched stickers, exposed PINs, or any signs that the pack was opened and resealed.

2. Buy cards kept behind the counter: Cards stored with staff or handed to you directly are far less likely to be tampered with.

3. Choose digital gift cards: Purchasing directly from the retailer’s website eliminates physical tampering. Keep the card details secure and only redeem through trusted payment portals.

4. Use the card promptly: Encourage the recipient to use the balance soon to minimize the window scammers have to access it.

5. Keep receipts and check balances: Hold onto proof of purchase and monitor the balance until the card is fully spent. This can improve your chances of reimbursement if fraud occurs.

Stay one step ahead this season

Gift card draining is a holiday headache no one wants. With a quick inspection and some smart purchasing choices, especially digital cards, you can help ensure your gift goes to your loved one, not a scammer’s stocking.