Emma Johnson, 48, from Nottinghamshire, UK, recently purchased a gift card at a Tesco supermarket as a birthday present for her brother. Her father and older brother also bought two similar gift cards from the same store.
However, when her brother attempted to use the three gift cards, valued at 120 GBP, all the funds had vanished. Johnson suspects the gift cards were tampered with inside the supermarket, and the money was withdrawn shortly after activation.
In the UK, gift cards are a popular gift choice, particularly during Christmas and birthdays. The One4all card is among the most widely used, allowing recipients to shop at numerous brands.
Last week, the Trading Standards Agency and the Reporting Fraud Agency (RF), two UK consumer protection organizations, warned that cybercriminals are increasingly targeting gift card scams to steal assets. This shift comes as banks tighten security measures.
Fraudsters typically target both online and physical fake gift cards, either draining funds directly or deceiving buyers into loading money onto cards which is then quickly stolen without a trace.
The RF estimates a 25% increase in gift card scams over the past two years. Between 2023 and 2024, the agency received 9,386 reports of gift card fraud, with total losses surpassing 18.5 million GBP (over 24 million USD).
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A store in Manchester city center, UK, displays a discount sign for the Christmas holiday season. Photo: Reuters |
A Tesco representative stated that the company employs strict technical and operational measures to prevent and address tampering with gift cards sold in stores. The supermarket advises customers to carefully inspect gift cards before purchase and to contact customer service if they suspect fraud.
RF Director Amanda Wolf noted that many victims do not report falling prey to gift card scams, which makes it challenging for UK authorities to assess the true prevalence of this crime.
Most scams are reported in January, following the Christmas holiday shopping season. Common scenarios involve purchasing fake gift cards online, acquiring physical cards that have been tampered with, or being deceived into buying fraudulent cards for others.
Louise Baxter, Head of the Anti-Fraud Team at the UK Trading Standards Agency, stated that the rise in gift card fraud is "not surprising", given that banks are tightening controls on money transfers. Consumers, she added, often do not anticipate the risk of gift card scams because it is a relatively new form of fraud.
Baxter urged authorities and businesses to adapt swiftly to fraudsters' evolving methods. "Sometimes I feel like I'm playing whack-a-mole; when one area is dealt with, another pops up", she said.
The UK Home Office announced its commitment to bringing all fraud perpetrators to justice. The department also stated it would unveil a strategy to combat gift card fraud next year. "We urge everyone to stop and think when transacting. No legitimate organization will ask you to pay for services using gift cards", a spokesperson for the UK Home Office emphasized.
Thanh Danh (According to BBC, Independent)
