Scammers Unleash “Card Draining” Scam: The Alarming Gift Card Fraud Sweeping the U.S.

As the holiday season ramps up, a disturbing new scam has emerged, leaving unsuspecting customers across the U.S. falling victim to a practice known as “card draining.” The latest incident involves a Colorado woman, Suzanne Gdovic, who shared her unfortunate experience with Fox & Friends First.

Gdovic recounted purchasing a $200 gift card at Target, intending to gift it to a friend. To her shock, when her friend attempted to use the card at checkout, the balance had been reduced to zero. The unsettling discovery unfolded as her friend was informed that the gift card had already been assigned to another individual’s account.

The perpetrators behind this scam employ a method involving the manipulation of gift cards. By carefully removing the silver lining covering the security code on the back of the card, scammers extract the code, register the card in their name, and then meticulously replace the silver strip. This enables them to steal the loaded funds before the legitimate cardholder even has a chance to use it.

Target’s Cautionary Measures

In response to the rising threat of gift card theft and scams, Target has issued warnings on its website, urging customers to exercise caution. The retail giant advises against buying, selling, or checking the balance on a gift card anywhere other than Target’s official website. Additionally, customers are urged to scrutinize the packaging for any signs of alteration or manipulation.

Gdovic, fortunately, managed to reclaim her funds by disputing the charge on her credit card. Emphasizing the importance of swift action, she highlighted the supportive stance taken by credit card companies in treating such incidents as instances of fraud and theft. However, she also acknowledged Target’s responsiveness in replacing the compromised gift card.

As the “card draining” scam gains traction, consumers are advised to remain vigilant. If a gift card’s packaging appears tampered with, it’s best to refrain from purchasing it. Should any doubts arise, seeking assistance from Target staff is recommended.

Photo: Unsplash

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