How To Spot Gift Card Schemes And What To Do To Avoid Them

Many brands and retailers have taken preventative and protective measures via secure packaging, and other technology-based solutions, but the "gift card draining" schemes like the one that led to the arrest of two men on Aug. 7 change quickly, authorities say.

Consumers and retailer employees should report suspicious activity related to gift card draining to local law enforcement immediately.

Red flags suggesting tampering include:

• Visible tears in the zigzag cuts around the perimeter of the secure pack or visible paper fibers around the borders, where a sharp knife may have cut through an edge.
• Visible tears or exposed nicks along the pull tab, or a pull tab that has been compromised or cut with a knife and then laid back down. A slight bend back and forth can show if this has occurred.
• Product and brand logos, colors, or marks closely resemble, but do not match the original.
• The personal identification number (PIN) cover has pieces missing, is entirely missing, is not flat/smooth, or contains wrinkles.
• The product's packaging or PIN covering deviates from the company's standard gift card packaging. Compare the packaging and PIN to others on the shelf.
• The balance does not match the purchased amount, even when there is no sign of tampering.