It’s gift-giving season, and DC Attorney General Brian Schwalb is warning consumers to be cautious when purchasing gift cards. A common scheme called “draining” could rip you off.
How It Works
Draining is when a scammer takes an unpurchased gift card, scratches off the back to reveal the code, then covers it up again. Once someone purchases the card, the scammer then goes online and accesses the card’s funds with the stolen code.
In some cases, scammers take unpurchased gift cards and replace the barcode with a barcode that has already been activated. Or they can scan codes of unpurchased gift cards and wait until you purchase the card to activate it and access the money.
How You Can Protect Yourself
Watch out for damaged gift card packaging or signs of tampering, especially the bar code and PIN. “But remember, even a gift card that appears untouched could still be unsafe to buy,” Schwalb says.
To protect yourself from scams, try to only buy gift cards from stores that keep them locked in a display case, behind the register, or that only add a barcode after the purchase.
It also helps to purchase gift cards with a credit card so you can dispute the charge if necessary. You can also register the gift card with the retailer whenever possible and keep the receipt.
If you are a victim of a gift card scam, keep the card and the receipt, and report it to The DC Department of Insurance, Securities, and Banking and the Office of the Attorney General’s Consumer Protection Office.
Feature image, Kenishirote/stock.adobe.com
