Holiday Gift Card Scams: What to watch for and how to report them

WASHINGTON - District of Columbia Attorney General Brian Schwalb has issued a consumer alert warning D.C. residents to be on the lookout for gift card scams this holiday season.

Scammers often tamper with gift cards on store racks by scanning the codes, then waiting for someone to buy and activate the card so they can drain the funds. In other cases, they swap the card’s barcode with one already tied to their account and redirect the money as soon as the purchase goes through.

"Unlike traditional scams that focus on manipulating victims into revealing personal information, these scams involve draining the gift cards of the funds loaded on to them without the scammers even having to contact their victims," Schwalb said in a statement.

"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," said DISB Commissioner Karima Woods. "We urge District residents to inspect cards carefully and report suspicious activity to DISB or the OAG."

What is a gift card draining scam?

Gift card draining scams involve thieves compromising cards on store racks by scanning the codes or swapping barcodes so they can steal the funds the moment a shopper buys and activates the card. These scams don’t require the victim’s personal information, making them fast, quiet and hard to detect.

What to watch for:

• Watch out for gift cards with damaged packaging, altered barcodes or PIN areas, or any signs of tampering. Even cards that look untouched may still be compromised.

Tips to protect yourself:

• Buy gift cards from stores that secure their displays or keep cards behind the counter.
• Use a credit card for purchases so your card issuer may be able to help if you're scammed.
• Register the card when possible, keep your receipt, and check the balance directly with the retailer.

Victims should keep their gift card or receipt and report the scam to DC’s DISB at 202‑727‑8000 and the Attorney General’s Consumer Protection Office at 202‑442‑9828 or oag.dc.gov/complaint.