The scam: Thieves copy gift card numbers + PINs while cards are still on the rack
The hit: Once a cashier activates the card for a unknowing buyer, the crook drains it fast—often before it’s even used
Avoid it: Check the PIN/scratch area for tampering, grab from the back, pay with credit, report suspicious cards
Police are investigating a gift card scam reported at a Giant Eagle store near Pittsburgh that we all need to be aware of.
Unfortunately, the scam is showing up in grocery and big-box stores nationwide. Police say scammers tamper with gift cards while they’re still hanging on the rack.
Here’s how the scam works
Someone steals the gift card number and PIN. They don’t steal the actual card, just the information off of it. They’ll then put the gift card back on display, and then wait.
Once an unsuspecting shopper buys the card and a cashier activates it, the scammer can quickly drain the balance before the recipient ever gets to use it.
The Better Business Bureau of Western Pennsylvania says criminals will repeatedly check balances online, sometimes using automated tools, and then move quickly to use the card the moment real money hits it.
In many cases, people don’t even realize anything is wrong until they try to spend the gift card and find the balance is already gone.
Police officials said they’re looking to question a person in connection with the reports at the Verona Giant Eagle. Giant Eagle said it’s cooperating with investigators and has taken steps to help prevent fraud, but warned that card tampering can be difficult to spot. The company also said it’s working to make customers whole in fraud situations.
The BBB said it has logged hundreds of scam reports involving gift cards this year, and the holiday rush creates the perfect storm: crowded aisles, distracted shoppers, and racks full of easy-to-grab cards.
How to avoid getting burned
Consumer advocates recommend a quick “gift card inspection” before you toss one in your cart:
- Check the PIN area. Make sure any tape, scratch-off strip, or protective covering looks intact and hasn’t been peeled, replaced, or re-stuck.
- Don’t grab the first card on the rack. Pick one from the back, and avoid cards that look bent, scratched, or resealed. If the protective covering of the card looks comprised, put the card back or show it to an employee.
- Buy from a trusted store and in person. Avoid sketchy online sources and third-party sellers.
- Use a credit card when possible. It can be easier to dispute charges than if you pay with cash or debit.
- Report suspicious cards immediately. If a card looks tampered with, hand it to an employee right away.
Bottom line
Gift cards are still a popular and easy holiday gift, but they’re also an easy target. In the last-minute shopping crush, a 5-second check of the packaging can be the difference between giving someone $50… or giving them an empty piece of plastic.