Gift Card Draining
A retail fraud in which criminals access gift cards in stores, record the card numbers and PINs, replace them, and drain the balance once a consumer activates and loads them.
Also known as: gift card fraud, gift card scam, card skimming retail
Last reviewed: 10 June 2026
Gift card draining targets physical gift card racks in retail stores. Fraudsters remove cards from packaging, photograph or write down the card number and PIN, then reseal and return the packaging to the shelf. Once a consumer buys and loads the card with funds, the fraudster redeems the balance — sometimes within minutes — before the intended recipient can use it.
More broadly, 'gift card fraud' also encompasses social-engineering scams that pressure victims into purchasing gift cards and reading out the codes over the phone (to fake government officials, tech support agents, or romantic partners). Gift cards are favoured by scammers because they are essentially anonymous and non-refundable.
Inspect gift card packaging for signs of tampering before purchase. Never provide a gift card number to anyone over the phone or via message — no legitimate authority, business, or emergency ever requires payment by gift card.
Examples
- Cards on a store display have been opened, the scratch panel removed and replaced, and the codes photographed; the consumer loads value which is immediately redeemed by the fraudster.
- A caller posing as HMRC instructs a victim to buy iTunes gift cards to pay a tax debt and read out the codes.