To protect yourself, look at the back of the gift card and packaging.
GREENSBORO, N.C. — Gift cards are among the most popular and easiest gifts to buy. Capitol One estimates that 64% of U.S. consumers purchase gift cards as holiday gifts, which is why scammers have figured out how to steal money from them.
It’s called the Drain Scam. Last year, 41,632 cases of gift card draining were reported. This resulted in a loss of $217 million.
HOW THE DRAIN SCAM WORKS
Crooks go to a store, copy the card number and activation code, then reseal the package. When you load money on the card, it goes to Scrooge.
Before you buy a gift card, inspect it. Run your finger over the card. Does it look like a sticker has been put over the barcode? Does it look like the package was opened and maybe glued back together?
Buy gift cards from behind the counter or a virtual gift card if possible. If you receive a gift card, use it as soon as possible.
DO YOU REGISTER YOUR GIFT CARDS WHEN YOU GET THEM? YOU SHOULD!
Did you know you should register the gift cards you get? When you get a gift card, look for the website on the back and register the card. This protects your card balance if it’s lost or stolen.
What you don’t want to do is Google ‘how do I check the balance on my gift card?’ Too many scammers have set up fake websites.
“On the back of the card it will tell you the site you go to to check the balance–those are the sites I would use,” said Lechelle Yates, Better Business Bureau.
