$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Gift card scams/In-store
gift card balance drain scam
Scammers tamper with gift cards on retail display racks by recording the card numbers, then monitor for activation and drain the balance before the buyer can use it.
“gift card scam”
↑ 29%Key indicators
Estimated impact
$1.2K
median reported loss
Typical range$120 – $12K
Recovery rate~5%
Annual reports48,800
Scam breakdown
1
Scammers visit retail stores and record the numbers and PINs from gift cards on the display rack.
2
They replace the cards on the rack and monitor the card numbers online for activation.
3
Once a customer buys and activates the card, the scammer immediately drains the balance.
What to do first
Inspect gift card packaging carefully for signs of tampering before purchasing.
Related terms
gift card tamperinggift card rack fraudgift card skimmingGift card scamsIn-storeRisingGift card buyersRetail shoppersUnited StatesCanadagift card tamperinggift card rack fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Carlos, 35, a gift card buyers, encountered what appeared to be a legitimate gift card scams situation while using In-store. Scammers visit retail stores and record the numbers and PINs from gift cards on the display rack.
Step 2
What happened next was calculated: They replace the cards on the rack and monitor the card numbers online for activation.
Step 3
The pressure escalated quickly: Once a customer buys and activates the card, the scammer immediately drains the balance.
The outcome
Carlos realized something was wrong when gift card packaging appears opened, resealed, or the scratch-off pin area looks tampered with. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Inspect gift card packaging carefully for signs of tampering before purchasing. Carlos's experience shows why gift card packaging appears opened, resealed, or the scratch-off pin area looks tampered with and the card balance is zero or lower than expected immediately after purchase are the clearest early warning signs.
How to identify it
- Gift card packaging appears opened, resealed, or the scratch-off PIN area looks tampered with
- The card balance is zero or lower than expected immediately after purchase
- The barcode sticker on the card appears to have been placed over another barcode
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Inspect gift card packaging carefully for signs of tampering before purchasing.
- ✓Choose cards from the back of the rack and buy from behind the counter when possible.
- ✓Keep the receipt and check the balance immediately after purchase — report any discrepancy to the retailer.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FBI has warned consumers about gift card tampering schemes where criminals physically alter cards on display racks in retail stores.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Inspect gift card packaging carefully for signs of tampering before purchasing.
- ✓Choose cards from the back of the rack and buy from behind the counter when possible.
- ✓Keep the receipt and check the balance immediately after purchase — report any discrepancy to the retailer.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FBI has warned consumers about gift card tampering schemes where criminals physically alter cards on display racks in retail stores.
FBI IC3 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Gift card buyers, Retail shoppers
Geographic concentration
United States, Canada
Primary channel
In-store — Gift card scams
Why this group is vulnerable
Gift card buyers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FBI has warned consumers about gift card tampering schemes where criminals physically alter cards on display racks in retail stores.
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about gift card balance drain scam
How does the gift card balance drain scam work?+
Scammers visit retail stores and record the numbers and PINs from gift cards on the display rack. They replace the cards on the rack and monitor the card numbers online for activation. Once a customer buys and activates the card, the scammer immediately drains the balance.
What are the warning signs of gift card balance drain scam?+
Gift card packaging appears opened, resealed, or the scratch-off PIN area looks tampered with The card balance is zero or lower than expected immediately after purchase The barcode sticker on the card appears to have been placed over another barcode
What should I do if I encounter gift card balance drain scam?+
Inspect gift card packaging carefully for signs of tampering before purchasing. Choose cards from the back of the rack and buy from behind the counter when possible. Keep the receipt and check the balance immediately after purchase — report any discrepancy to the retailer.
Who is most at risk for gift card balance drain scam?+
This scam primarily targets Gift card buyers, Retail shoppers. It is most commonly reported in United States, Canada and typically appears on In-store.
Is gift card balance drain scam on the rise?+
gift card balance drain scam is currently on the rise with growing reports. It has been reported across US, CA. Last updated 2026-04-04.
Related scams
Similar scams to watch out for
Gift card scams
↑ 23%payment by gift card demand scam
A scammer posing as a government agent, utility company, or other authority demands you pay a debt, fine, or fee by purchasing gift cards and reading the numbers over the phone.
What to do first
Hang up immediately — gift cards are for gifts, not payments. No real organization demands gift card payment.
Targets
Older adults
Seen in
U.S.
Gift card scams
↑ 23%gift card activation fee scam
A fake website or phone call claims your gift card requires an activation fee before it can be used, tricking you into providing payment information.
What to do first
Activate gift cards only through the official website or phone number listed on the card issuer's official site.
Targets
Gift card buyers
Seen in
U.S.
Gift card scams
↑ 23%retail store impersonator gift card scam
Scammers call or email pretending to be from a major retailer, claiming there is a problem with your recent gift card purchase and requesting the card numbers to 'verify' or 'replace' it.
What to do first
Never share gift card numbers or PINs with anyone who contacts you — retailers will not call asking for this information.
Targets
Gift card buyers
Seen in
U.S.
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.