New ‘Gift Card Draining’ Scam Threatens Holiday Shoppers
A sophisticated new scam targeting gift card purchasers is sweeping the nation, potentially draining funds from cards before they are even gifted. Authorities are warning consumers to be vigilant this holiday season as criminals exploit vulnerabilities in gift card security.
The scheme, dubbed gift card draining, involves scammers surreptitiously accessing gift card codes and stealing the pre-loaded value. According to a recent news release from the office of D.C. Attorney General Brian Schwalb, perpetrators remove unpurchased gift cards from displays, subtly scratch off the back to reveal the activation code, and then conceal their tampering.
Once a customer buys and activates the compromised card, the scammer remotely accesses the funds online, leaving the intended recipient with a worthless gift.
“This holiday season, District residents should watch out for sophisticated gift card ‘draining’ scams that prey on shoppers who like to give gift cards as holiday presents,” Schwalb stated.
How to Protect Yourself From Gift Card Scams
Officials are urging shoppers to take several precautions to avoid becoming victims of this evolving fraud.
Here’s what you can do:
- Inspect Cards Carefully: Before purchasing any gift card, thoroughly examine it for any signs of tampering. Look for scratches, damage, or anything that appears out of place. Do not purchase a card if anything seems suspicious.
- Choose Secure Displays: Opt for gift cards that are stored securely, such as those kept behind the counter or in locked cases, rather than those readily accessible on open racks.
- Pay with a Credit Card: Using a credit card to purchase gift cards offers an added layer of protection. If you are defrauded, your credit card company may be able to reimburse your funds.
Reporting Gift Card Fraud
D.C.’s Department of Insurance, Securities and Banking Commissioner Karima Woods emphasized the importance of reporting any suspected gift card fraud. “Gift cards may seem like a safe and simple solution to gift giving, but scammers are finding new ways to drain their value before they’re even used,” Woods said.
If you believe you have been a victim of this scam, you are encouraged to report it to the D.C. Department of Insurance, Securities and Banking at 202-727-8000. You can also file a complaint online or contact the Office of the Attorney General’s Consumer Protection section at 202-442-9828.
This emerging threat underscores the need for heightened awareness and caution during the holiday shopping season, reminding consumers that even seemingly convenient gift options can be vulnerable to criminal activity.
