Gift card draining ring busted before holiday season
By the Securify teamPublished Oct 14, 2026. 1 min read.
The safe move
Before you leave the store, ask the cashier to confirm the card’s balance. If the PIN strip looks scratched or lifted, pick another card.
Gift cardScratch here for PIN1
At the store, a gift card on the rack looks untouched. Its hidden code was copied earlier and the card resealed2. The moment you load money onto it, the balance is spent somewhere else.
What gives it away
1
A scratched or lifted PIN strip
Thieves copy the hidden code, reseal the card and wait for someone to load it.
2
A package that was opened
Pick another card and show the damaged one to a cashier or manager.
Pretends to be
A sealed gift card
Arrives by
In person
After
The money you load
Main source
Texas Financial Crimes Intelligence Center, Sep 14, 2026
What’s going on
On Sept. 14, the Texas Financial Crimes Intelligence Center announced four arrests in a ring that worked stores in Texas and Arkansas. Investigators said the group recorded the codes under cards’ protective stickers, put the cards back on racks, and drained them after shoppers paid. They reported hundreds of tampered cards and more than $100,000 in potential losses from a single day. Gift-buying season starts now.
If your card was drained
Call the gift card company right away, using the number on the back of the card, and ask for your money back.
Safe move: Don’t engage. The FTC says real payments arrive on their own by Venmo, PayPal or check, with no claim forms or fees. If you expect one, open the payment app yourself to check.
