Holiday Gift Card Scam Prompts Warning From Bay Area Police Department

PINOLE, CA — A clever new scam spurred an East Bay police department to share a detailed warning as residents shop for presents this holiday season.

On Monday, the Pinole Police Department shared an explainer video this week after scammers struck at a local store. Using popular Amazon gift cards, parol sergeant Barry Duggan demonstrated how it all works and why it can be easy for shoppers to miss.

Duggan explained that each card comes in an envelope with a visible bar code on the outside, which is what gets scanned at the cash register and loads the value onto the card. Inside the envelope, the card itself has a scratch tab on top, concealing a code that gives access to the funds — provided the card has been activated.

"The scam that we saw was that somebody was taking all these cards from the store without paying for them, and without loading them up, and taking them home," Duggan said. "What they do is they heat up these envelopes to where they can open them as carefully as they can, remove the card, and actually cut the top of the card off."

After securing the section with the code, Duggan said the scammer puts the remaining part of the card back into the envelope and reglues it shut before sneaking what looks like an unaltered gift card back onto store shelves. Then, the scammer waits until an unsuspecting victim purchases the card, activating the stolen code and giving them access to the funds.

The scam has hit other parts of NorCal this season, too. Authorities in Sacramento said Wednesday that they caught a man acting suspiciously inside a Target during an effort deemed "Operation Night Elf." In that case, detectives said the man was discovered to have taken more than 5,000 gift cards from Target and Apple stores.

Police have a few ideas to help shoppers from unknowingly becoming a victim.

"What we're advising to do is when you guys are buying gift cards, either feel for the entire card — it should be the same size as a credit card — or, with permission from the store, when you go up to purchase these ... remove them from these folders and make sure that the whole card is there," Duggan said. "That way when you give your presents to your loved ones this Christmas, they're actually getting that money, and they can spend it on whatever they want, rather than someone else spending it for you."

Watch the full demonstration below:

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