Gift card fraud is on the rise, with victims losing millions. The number of scams involving gift cards has increased by about 25% over the past two years, according to experts. Fraudsters target the cards online and in stores, draining the money from them or tricking people into buying them to transfer money without a trace. Report Fraud, the national body for fraud reporting, received 9,386 reports of gift card fraud in 2023/24, with over £18.5m lost. Emma Johnson, 48, from Nottinghamshire, was a victim of a gift card draining scam. She, her dad, and her brother all bought gift cards for her other brother's birthday from the same Tesco store within a week, spending £120 in total. When he went to use them, the money had already been spent. Emma believes the cards were tampered with while in the store and drained once activated. She urges people to check the card number against the receipt number. Tesco has a robust set of technical and operational measures to prevent and deal with card tampering. Customers are advised to check gift cards carefully before buying and to speak to the customer service team if they suspect fraud. The rise in gift card fraud is attributed to tighter controls on sending money from bank accounts and the relatively new nature of the scam. Criminals are diversifying their methods, and gift cards are difficult to trace. The Home Office is committed to bringing perpetrators to justice and will announce a fraud strategy in the new year. The Gift Card and Voucher Association emphasizes that the vast majority of gift cards are bought without issues and are supported by established consumer protections. Retailers and issuers invest in security, transaction monitoring, staff training, and intelligence sharing to protect customers and support genuine use.
