As millions of Brits prepare to give and receive gift cards this Christmas, a stark warning has been issued over a sophisticated fraud that has already seen £13.4 million stolen in the past year alone.
The Scale of the Festive Fraud
BBC Radio 4's Money Box presenter, Dan Whitworth, highlighted the alarming figures from Action Fraud during an appearance on BBC Morning Live. He emphasised that the reported £13.4 million loss is likely just the tip of the iceberg, as many incidents go unreported. The scam, known as 'card draining', turns what should be a thoughtful present into a worthless piece of plastic before it even leaves the shop.
How the 'Card Draining' Scam Works
Dan Whitworth explained that criminals operate brazenly in supermarkets and retailers. They target large displays of gift cards, often left unattended, and tamper with multiple cards at once. "They will tamper with the gift card," he said. "They might peel the security cover on the back, scrape away the foil, and they're then basically able to drain that card of any cash as soon as the money is put on." This means the victim pays for a card that has already been compromised, with the fraudster ready to siphon off the funds instantly.
How to Protect Your Purchase
Experts advise taking just 20 seconds to inspect a card thoroughly before buying. Shoppers should check the packaging for any signs of tampering, such as it looking already opened or the card having been removed. If anything seems suspicious, choose another card or alert a staff member.
One crucial tip is to avoid cards from open displays. "Shoppers can feel more confident that their cards haven't been tampered with if they collect them directly from the till area," advised Whitworth, noting that staff can keep a closer watch on cards located near checkouts, deterring criminals.
Gift card provider One4All has also published guidance, stating: "Gift card fraud is a serious and growing threat... Scammers use gift cards as an easy way to steal money, so spotting gift card fraud is crucial to protect yourself from financial loss."
With Christmas just days away, a moment's vigilance could be the difference between giving a cherished gift and handing over cash to a fraudster.
