You buy a gift card off the store rack, the recipient goes to use it, and the balance is already gone. No one mistyped anything — the card was drained before it was ever activated. Gift card draining is a sneaky scam that targets the cards hanging in plain sight. Our GetMyPassword team explains how it works and how to avoid buying a card that is already compromised.
How gift card draining works
A scammer quietly takes gift cards from a store display, records each card’s number and PIN — sometimes peeling back the protective sticker — and puts the cards back on the rack. Then they wait. Using the stolen details, they monitor the cards and pounce the moment one is bought and loaded with money, spending the balance online before the recipient ever scratches it off. The card you purchased looks untouched, but its value is being watched by someone else.
Signs a card may be tampered with
- A scratched or peeled PIN sticker, or one that looks reapplied.
- Torn or wrinkled packaging, or a card that does not sit flush in its sleeve.
- Exposed card numbers visible without removing any covering.
- A card from the very front of the rack, the easiest for a tamperer to grab and return.
How to buy and use gift cards safely
Inspect any card before buying: check that the PIN sticker is intact and the packaging is sealed, and choose a card from the back of the stack rather than the front. Keep your receipt, register or use the card promptly, and consider buying directly from the brand’s own site or counter for big amounts. If a balance disappears, report it to the retailer and the card issuer right away with your receipt — speed matters for any chance of a refund.
A gift card on a rack is just a number and a PIN waiting to be loaded. Check the sticker, buy from the back, and use it quickly — so you are first to the money, not the scammer.
A note on gift card scams in general
Draining is one of two big gift card threats. The other is being told to pay with gift cards — no legitimate bill, agency or prize ever requires it, so any such demand is a scam. For both, keep your own accounts secure so a thief cannot buy or send cards in your name: a unique password from our password generator on every shopping and payment account, plus two-factor authentication.
Frequently asked questions
What is gift card draining?
It is when a scammer records the number and PIN of gift cards on a store rack, returns them, and spends the balance the moment a card is bought and loaded. The card looks untouched, but its value is stolen before the recipient uses it.
How can I avoid a drained gift card?
Inspect the card for a scratched or reapplied PIN sticker and tampered packaging, choose one from the back of the stack, keep your receipt, and use or register it promptly. For large amounts, buy directly from the brand.
What should I do if a gift card balance is gone?
Report it immediately to the retailer where you bought it and the card issuer, with your receipt. Acting quickly gives the best chance of a refund or investigation. Keep the card and packaging as evidence.