Emma Johnson
Emma Johnson says she wants to raise awareness after she fell victim to a gift card draining scam
Shoppers are being warned to be vigilant as the number of scams involving gift cards rise.
Both Trading Standards and Report Fraud, the national fraud reporting body, said better bank protection was pushing criminals to turn to gift cards as a new way to get our money.
According to experts, fraudsters target the cards online and in the shop to drain the money from them, or trick people into buying them to transfer money without a trace.
Report Fraud, the national body for fraud reporting, believes it has increased by about 25% over the past two years. New figures from the organisation show they had 9,386 reports of gift card fraud in 2023-24, with more than £18.5m lost.
Emma Johnson, 48, from Nottinghamshire, said she, her dad and her brother were all victims of a gift card draining scam.
They had all separately bought gift cards for her other brother’s birthday from the same Tesco store within a week of each other, spending £120 in total.
But when he went to use them, it turned out the money had been spent already.
She said: “It’s upsetting that you’ve gone out and bought a present for someone and they haven’t actually got anything.
“It’s not left me with confidence to buy a gift card in store.
“I don’t want this happening to anyone else.”
She believes the cards had been tampered with while in the store and the money drained from them once activated.
She urged people to make sure the number in their card matched the number on their receipt.
‘Emerging crime’
A spokesperson for Tesco said they had a “robust set of technical and operational measures” in place to prevent and deal with card tampering.
They advised customers to check gift cards carefully before they buy, and to speak to the customer service team if they think they have been victims of fraud.
Amanda Wolf, head of Report Fraud, said under reporting made it difficult to know exactly how much it was increasing by, but said their intelligence suggested cases had risen by about a quarter over the past two years.
“It’s not unusual when there’s an emerging crime type,” she said.
“But it’s absolutely one we are looking at and we are looking to do a deep dive into over the next 12 months.”
She said most of the reports came in around January after the festive period.
The ways people are caught out include buying fake online gift cards, accidentally buying a card which has been tampered with or being tricked into buying gift cards for someone.
She also said criminals used phishing emails, offering fake gift cards as a prize or a deal.
Ms Wolf said: “Make sure you’re buying from reputable sellers, if you’re purchasing in person make sure it’s not been tampered with.
“If they look poorly made, or don’t have visible security features, don’t use them and take them back.
“Use two-factor authentication [when shopping online] and check out as a guest to protect your details unless it’s a website you recognise and use regularly.
“For that 30 seconds, stop, and think.”
She also said she would like to see gift cards being better protected in shops, including being put behind the till.
National Trading Standards
Louise Baxter believes some victims of gift card fraud would not think of it as a scam
Louise Baxter, head of the National Trading Standards Scams Team, said it was “not a surprise” gift card fraud was on the rise, and believed it was likely under reported.
She thinks the rise is down to tighter controls on sending money from bank accounts and people not expecting to be scammed with gift cards as it is a “relatively new” fraud.
“The criminals are diversifying and trying to find new methods of stealing our money,” she added.
“Gift cards are difficult to trace, and from the consumer’s point of view, how do you prove you didn’t just give it to a friend?
“There’s more that can be done – we need to ensure we diversify as quickly as the criminals do.
“But sometimes it’s like whack-a-mole.”
She said she wanted to see more campaigns to raise awareness, and training for shop staff to check in with people spending lots of money on gift cards.
The Home Office said it was “committed to bringing every perpetrator of this devastating crime to justice”, and would announce a fraud strategy in the new year.
“We’re urging everyone to stop and think. No genuine organisation will ever ask you to pay with gift cards,” a spokesperson added.
Hannah Shimko, managing director of the Gift Card and Voucher Association, said the vast majority of gift cards were bought with no difficulty and “are supported by established consumer protections”.
She added retailers and issuers spent a lot on security, transaction monitoring and staff training, and shared intelligence.
She previously told the BBC putting gift cards behind the counter would add “unnecessary friction” and could lead to a 30% drop in sales, based on industry experience.
She added: “Gift cards continue to be one of the most popular and trusted ways to give, particularly at Christmas, and the industry remains committed to protecting customers and supporting genuine use.”
