New Gift Card Scam “Card Draining” Raises Concerns Among Officials

Officials across the United States have issued warnings about a new gift card scam known as “card draining.” With the holiday season in full swing, many shoppers are opting to purchase gift cards as Christmas presents, making them vulnerable to this fraudulent activity.

Arrest Made in California

In California, law enforcement arrested a man named Ningning Sun for tampering with Target gift cards at a store in Sacramento. According to the Sacramento County Sheriff’s Office, Sun was found in possession of over 5,000 gift cards.

During a retail theft operation called Operation Bad Elf, detectives noticed Sun acting suspiciously near the gift cards in a Sacramento Target store. They observed him placing the gift cards inside his jacket and replacing them with seemingly identical ones. Further investigation revealed that Sun was part of a sophisticated scam operation that spanned multiple states.

The scam involved tampering with gift cards, scanning their barcodes, and stealing money loaded onto them. The stolen funds were quickly transferred to offshore accounts, leaving victims completely unaware of the theft.

Undetectable Modifications

The Sacramento County Sheriff’s Office emphasized that these scam operations are highly sophisticated, and modifications to the gift cards are often virtually undetectable. Even trained individuals may struggle to identify any signs of tampering.

Given the prevalence of this scam, the sheriff’s office advised people to avoid purchasing gift cards for Christmas altogether.

Other Incidents and Recommendations

The New Britain Township Police Department in Pennsylvania also reported incidents of tampering with Apple and Visa gift cards at Giant store locations. They urged customers to check all gift cards and their packaging for signs of tampering and to report any suspicions to store managers or service desks.

The Pinole Police Department in California released a social media video explaining the scam, which involves removing the gift card from its packaging and cutting the activation code.

Target, in response to the sheriff’s office’s findings, stated that they take gift card scams seriously. They have implemented measures to educate their team members about common scams and encourage vigilance at registers. Target also expressed their willingness to assist law enforcement with their investigation.

Additionally, state attorney general’s offices advise customers to ensure that gift cards are sealed and that the protective tape is intact. Customers should also check for any signs of tampering. If a purchased card is found to have been tampered with, it is crucial to report it immediately to the issuing company and request a freeze on the card.

Conclusion

The “card draining” gift card scam poses a significant threat during the holiday season. Officials urge caution and recommend avoiding gift card purchases altogether. If you do choose to buy gift cards, it is essential to be vigilant and check for any signs of tampering. By staying informed and taking necessary precautions, consumers can protect themselves from falling victim to this fraudulent activity.