Gift Card Draining Scam: How Barcode Tampering Works

Gift card draining is when criminals tamper with cards on a store rack before anyone buys them. They copy the card number and PIN, or cover the barcode with a fake sticker, so the money you load goes to them. Before buying, check that the protective sticker is intact, the PIN is hidden and the barcode isn't a sticker. If it has already happened to you, contact the gift card company right away.

How does the gift card draining scam work?

Scammers tamper with gift cards in the store so they can take the money after someone else pays to load it. The FTC and the FBI describe two main methods.

Copying the card number and PIN

According to the FTC, scammers may remove the protective stickers from gift cards or scratch off the back to reveal the PIN. They record the card number and PIN, put the card back on the rack, and wait. Once you load money on the card, they can spend it using those numbers, even without holding the card.

Swapping the barcode

The FBI warns about scammers placing fake barcodes over the real barcodes on gift card packaging. When the cashier scans the fake barcode, your payment loads a card the scammer controls. The card you take home stays at a zero balance.

In both cases the packaging can look almost normal, which is why a quick check before you pay matters.

How can I tell if a gift card has been tampered with?

Look closely at the back of the card and its packaging before you take it to the register. This checklist is drawn from FTC, FBI and Canadian Anti-Fraud Centre advice:

• The protective sticker over the PIN or security code is present and doesn't look lifted or replaced.
• The PIN area isn't scratched off, and you can't see the PIN.
• The barcode isn't printed on a sticker.
• The barcode number matches the number printed elsewhere on the packaging.
• The package isn't ripped, wrinkled, bent or resealed.
• It looks like the other cards in stock. The Canadian Anti-Fraud Centre suggests comparing cards and running your finger over the barcode.

The FBI also suggests taking a card from the middle or back of the rack instead of the one at the front.

What should I do if I spot a tampered card?

Don't buy it, and show it to a cashier or manager. The FTC says scammers may tamper with gift cards in batches, so if one card looks suspicious, consider buying from a different store.

How do I buy gift cards more safely?

• Keep the receipt and a copy of the card number. The FTC says these help you report a problem to the gift card company.
• Pay with a credit card if you can. The FTC notes you get the most protections when you pay with a credit card.
• Check the balance soon after buying. Use the website or phone number printed on the card so you catch a problem early. Our Visa gift card balance guide shows how to find the right issuer.
• Buy from the brand or issuer directly. The Canadian Anti-Fraud Centre advises avoiding resale and auction sites when buying gift cards online.
• Use only official balance-check sites. Giftcards.com warns about fake sites that capture card numbers and PINs. Type the address yourself.

Our gift card balance guides list the official site for each brand, including Vanilla Visa and Mastercard gift cards.

What to do if your gift card was drained

Contact the gift card company as soon as you notice the money is missing. The FTC says the faster you report, the better your chance of getting your money back.

1. Call the company using the number printed on the card or packaging. For Vanilla gift cards, Vanilla lists 1-833-322-6760.
2. Tell them the card was drained, and give them the information from your receipt and the card number.
3. Ask for your money back. The FTC says some gift card companies may be able to flag fraudulent transactions and freeze stolen funds.
4. Tell the store where you bought the card, so it can check its display for other tampered cards.
5. Report it to the FTC at ReportFraud.ftc.gov in the US, or to the Canadian Anti-Fraud Centre in Canada.
6. Keep the card, packaging and receipt until the case is closed.

A refund isn't guaranteed, but a fast report with your receipt gives you the best chance. If the problem first showed up as a decline at checkout, our guide to Visa gift card declines covers other causes to rule out.

Where do I report gift card tampering in the US and Canada?

The Canadian Anti-Fraud Centre's online reporting system is at reportcyberandfraud.canada.ca, and it accepts reports from victims and witnesses.

Is gift card draining the same as a gift card payment scam?

No. Draining happens before you buy, without any contact from the scammer. In a gift card payment scam, someone pretending to be from the IRS, the CRA, a utility or tech support pressures you into buying cards and reading them the numbers. Both have the same first step: contact the card company quickly. See what to do if someone asked you to pay with gift cards.