Beware of Gift Card Draining this Holiday Season

As we gear up for a season of cheer and gift-giving, let’s be aware of the sneaky little grinches who are trying to steal your holiday spirit (and your hard-earned money) with the “gift card draining scam.”

Gift card draining is a term used to describe when scammers steal money by altering barcodes or replacing the packaging on the outside of the gift card. This quick bate-and- switch guarantees that the funds placed on the card will be diverted into the scammer’s account rather than on the card.

Phishing emails are also often the trigger for gift card draining. How does that work?

Scammers create and sell fake gift cards that appear legitimate but have no actual value. They then use phishing tactics to trick victims into revealing their personal information and credit card details, claiming to activate the “fake” gift card. With the victim’s credit card details, they steal money directly from the victim’s account, using the fake gift card activation as a pretext.

This CISO Update is your holiday survival guide to outsmarting these scams. Here’s how to avoid falling victim to the gift card draining scam:

• Before you purchase a gift card, inspect the packaging for any signs of tampering. Look for scratches, tears, or misaligned seals.
   
• Buy gift cards directly from reputable retailers. Avoid buying them from unknown sources or online marketplaces.
   
• Once you have your gift card, activate it immediately. This will help you identify any issues and prevent the Grinch from draining the funds.
   
• If you suspect a gift card has been tampered with, report it to the retailer immediately. They may be able to replace the card or investigate the issue further.
   

• Activate gift cards directly on the official website of the issuer, not through links provided in emails/texts.
   

So, this holiday season, be vigilant and “Be Cybersafe”.  Happy Holidays!

The Division of Information Technology is dedicated to protecting the FIT community from the latest cybersecurity threats by providing warnings and creating awareness through training and information-sharing. Visit fitnyc.edu/cybersafe for more information. And stay tuned for emails from [email protected] for the latest from the Cybersafe campaign at FIT.

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