There was a surge in gift card draining scams in the US around Christmas 2023 – now the scam is gathering pace in the UK (Picture: Bloomberg via Getty Images)
Christmas is coming and the scammers are circling, with their sights set on gift cards.
One of the most popular presents, they’re a prime target for scammers, who stole £13.5million through gift card scams in the UK last year.
Even when they’re spoofing the number of HMRC, you can sniff out criminals exploiting fear of an unpaid tax bill to trick you into loading money onto a gift carding and handing the details over to them.
And people are cottoning onto the con of scammers posing as friends or family in need over vague messages from new WhatsApp numbers.
But you should be able to assume your supermarket purchases are authentic and scam-free.
Increasingly, it seems, that’s not the case.
Scammers are stealing gift cards from stores, and scratching off the silver foil or removing a paper strip to reveal a validation code.
They then copy this down, glue the cover back on, and return them to the shop shelves as if they’d never been gone.
Unsuspecting customers then buy them and load them with money as a gift for family and friends who are unlikely to use them straight away – particularly not on Christmas Day.
This delay gives an opportunity to scammers, who are watching the balance, waiting for their moment to drain it with purchases.
Once the money is spent, it’s untraceable, which – along with the popularity and sometimes high value of gift cards – make them a desirable tool for scams.
In one case, a woman lost a total of £150 after buying two Amazon gift cards after her local Sainsbury’s store last December, This Is Money reports.
Two weeks later, she gave them to her niece, who found the money had been spent before she even received them, when she tried to shop online in January.
Sainsbury’s, who arranged for a full refund, said: ‘We have a range of measures in place to prevent fraud and we are working closely with the Gift Card and Voucher Association to look at what else retailers can do to help.’
There are different types of gift card scams, including impersonation, fake competitions, and draining (Picture: Jeffrey Greenberg/Universal Images Group via Getty Images)
At the time Amazon said: ‘We take gift card related fraud very seriously.
‘We work closely with our third party distributors to improve how we protect customers and businesses.
‘If customers have concerns about a gift card, they should return it to the place of purchase.
‘We also encourage customers to report any suspected scams to us so we can keep customers safe.’
How can customers protect themselves from gift card draining scams?
Check before you buy – give the gift card a thorough inspection and look for signs of tampering before you buy it. Those stored behind the counter may be safer as they are monitored by staff.
Check the value as soon as you’re given one as a gift, and return it to the store immediately if the money has already been drained
Buy online from reputable retailers like Asda and brands like Cardly and Prezzee
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