The gift that didn't give: navigating unexpected gift card draining

As the holiday cheer fades and folks settle into the new year, many are left puzzled by an unexpected issue: gift cards with missing balances. If you've found yourself in this frustrating situation, you're not alone. This post-holiday phenomenon, known as "gift card draining," has become an increasingly common problem.

What is gift card draining?

Gift card draining occurs when scammers steal the balance from legitimate gift cards before the intended recipient can use them. This sophisticated form of theft has seen a surge, leaving many holiday gift recipients disappointed and confused.

How does it happen?

Scammers employ various tactics:

• Physical tampering: Fraudsters access in-store gift card racks, record card information, and drain balances once cards are activated.
• Digital skimming: Hackers breach retailer systems to steal gift card data in bulk.
• Bot attacks: Automated programs guess card numbers and PINs to access balances.
• Social Engineering: Scammers trick customer service reps into transferring balances.

What to do if your gift card has been drained

If you've discovered your holiday gift card has an unexpected zero balance:

• Contact the retailer: Reach out to the gift card issuer immediately. Many have policies to assist in these situations.
• Inform the giver: Let them know about the issue. They may have the receipt, which can be crucial for resolving the problem.
• File a report: Contact the Canadian Anti-Fraud Centre to report the incident.
• Document everything: Keep all related receipts, card numbers, and correspondence.

Protecting future gift cards

While it might be too late for your drained holiday gift card, here are tips to protect future ones:

• Register cards promptly: If possible, register the gift card on the retailer's website.
• Use quickly: The longer a card sits unused, the more vulnerable it becomes.
• Check balances regularly: Monitor your card balance, especially before making a purchase.
• Inspect physical cards: Before using, check for signs of tampering.
• Keep receipts: Always save the purchase receipt as proof of purchase.
• Be cautious online: Use secure internet connections when checking balances or making purchases.
• Consider digital options: E-gift cards sent directly to email can be more secure than physical cards.

Looking ahead

While gift card draining is a concerning trend, being informed and cautious can significantly reduce risks. As we move past the holiday season, remember these tips for any gift cards you receive throughout the year. If you've been a victim of gift card draining, don't be embarrassed – it can happen to anyone. The most important step is to report it and take action quickly. Staying vigilant and informed is key.