As the holiday season hits its peak, shoppers eager to quickly check off their gift lists might unwittingly fall prey to a stealthy scam that's sapping the joy out of gift-giving. Cybercriminals are executing a brazen ‘card draining’ heist, targeting the convenience of gift cards by draining their funds before the intended recipients can utter a "thank you." According to cyber security expert Chris Peltz with Guidepoint Security, who spoke with KXAN, "Oftentimes, scammers will replace a barcode on the back of a card with a card they have. So while we're buying that card, we think we're adding value to the card we're buying. And we're actually adding value to a scammer's card."
These thieves are not only technologically savvy but also brazen enough to walk into stores to manipulate these cards. They are known to temporarily steal batches to jot down the card number and PIN or activation code, Peltz warned. To effectively combat these scammers, Peltz advises buyers to "buy gift cards straight from the retailer online" as digital gift cards are harder to tamper with. If physical cards must be purchased, he recommends checking their packaging thoroughly for any signs of tampering.
Meanwhile, devastating tales of loss are surfacing among consumers. Suzanne Gdovic, a 64-year-old from Arvada, Colorado, had the misfortune of gifting a tampered-with $200 Target gift card. The Daily Mail reported her saying, "It was embarrassing," and further recounted how a trip to her local Target and two months of persistence ultimately led to reimbursement, but with no acknowledgment from Target regarding the scam. "The retailers have to start helping us out. I feel bad for people that don't get their money back," Gdovic told the Daily Mail.
Police caution that the scam peaks during the holiday rush, with retailers like Apple, Amazon, and Visa Vanilla also being manipulated by fraudsters. In a statement obtained by DailyMail, one victim, Greg Clark, detailed losing $650 across two Visa Vanilla cards purchased at a Walgreens in New York City. Victims across the nation have recounted similar incidents, some sharing how hundreds of dollars have vanished, leaving them to awkwardly explain to their loved ones why their gift has no value.
Authorities and cyber security experts stress the importance of vigilance while purchasing gift cards. Inspect them for scratches, scuff marks, or any evidence of tampering. Keeping the receipt is essential, as it proves the purchase and aids in claiming refunds if necessary. If you discover a card has been tampered with, act swiftly to report it to the gift card company and insist that the funds are frozen and a refund is issued. For more information on how to safeguard your holiday generosity from digital Grinches, follow the coverage on KXAN.
