Gift cards are a convenient way to give but they’ve also become a target for scammers, particularly so in the run up to Christmas. From tampered cards on shop racks to sophisticated online bots, fraudsters are finding new ways to drain gift card balances before they’re even used. Here’s how these scams work, why they happen and what you can do to stay safe.
Image by Gerd Altmann from Pixabay
How do gift card scams work?
Gift cards come in many formats and are sold in huge volumes — that makes them easy pickings for criminals. The scams fall into a few main types:
Imposter scams – fraudsters pose as someone from HMRC, your bank or a competition prize centre, demanding you buy gift cards to pay a fee or claim a win.
Romance scams – someone you’ve met online convinces you to send them gift cards for an ’emergency’.
Tampered gift cards in shops – perhaps the most worrying trend: scammers physically interfere with the cards before they’re sold.
How do scammers tamper with gift cards?
In-store gift card fraud is deceptively simple but effective:
Scammers remove cards from the display racks.
They carefully peel off or scratch the protective strip covering the card number and PIN.
They record the details, then re-seal the card to make it look untouched.
Once that card is bought and money is loaded onto it, scammers use the recorded numbers to drain the balance almost immediately, often before the buyer or recipient even tries to use it.
In some cases, automated bots monitor online balance checkers, repeatedly testing card numbers until they spot one that’s been activated and then instantly transfer or spend the funds.
Why do gift card scams happen?
Gift card scams thrive because of a mix of opportunity, speed, and scale:
Busy retail environments – staff are occupied with serving, stocking and assisting customers.
Open displays – cards are often placed on open racks in high-traffic areas, giving scammers quick access.
High volume and variety – there are thousands of card types, making it difficult for stores to monitor each one closely.
Skilled scammers – it takes just seconds to tamper with a card.
System weaknesses – in rare cases, flaws in retailer systems can even reveal which cards have been activated.
What role do bots and automation play?
Many modern gift card scams are powered by automated scripts and bots. These programs can run through thousands of card numbers on retailer websites, testing for active balances. When they find a live card, they instantly redeem or transfer the funds, often before anyone notices.
Some bots also check balances regularly so they can drain newly activated cards the moment money is loaded.
How to avoid gift card scams
You don’t need to stop buying gift cards altogether, just take a few smart precautions.
Be vigilant. Inspect the card before buying. Look closely for signs of tampering eg scratched-off strips, loose packaging or damage.
Keep the receipt until the card has been used.
Buy only from trusted retailers or directly from official brand websites, not from open racks which are more vulnerable or third-party sellers.
Pay by credit card where possible, to benefit from consumer protection.
Use gift cards asap after purchase, store them securely and check balances regularly.
Never
Share gift card codes or photos with anyone you don’t know personally.
Follow instructions from unsolicited calls, emails or texts asking for payment in gift cards.
Image by Alexa from Pixabay
Can you get a refund if your gift card is scammed?
Retailers aren’t usually obliged to refund money lost to gift card scams. While some may offer refunds as a gesture of goodwill, legally they’re not responsible because:
The retailer has fulfilled its part of the transaction.
Gift cards are treated as cash, once the balance is spent, it has no value.
The scam typically occurs after the legitimate sale.
Gift card transactions can’t be reversed once processed.
Still, it’s always worth contacting the retailer or card issuer as soon as possible. Some will freeze or cancel a compromised card if you haven’t been able to use it.
Final Tips
Be skeptical of anyone who asks for payment via gift cards.
Inspect cards carefully before buying and check for any signs of tampering.
Act quickly if something doesn’t feel right, report it to the retailer and to Action Fraud.
Share this advice with friends and relatives, especially older shoppers, who are often targeted.
Remember: Gift cards are only as good as cash and should be treated that way. They remain a popular choice for customers but it’s worth remembering that there are ways to get the most out of them so you don’t get left out of pocket.
