I don't buy Visa/Mastercard gift cards very often, but I did this week, and was the victim of the latest scam that's sweeping the U.S., so I wanted to share in case this helps others.
My son wanted to make a small online purchase for a game, which I okayed. I would prefer not to have my card stored in an online gaming site or on his computer, so I thought I would just buy a Visa gift card and he could use that for the purchase. He bought a couple of games last year using a gift card someone gave him for Christmas, so this seemed like a good solution.
We went to the gas station up the street and they didn't have any Visa gift cards so we went to a nearby Walgreens. They had a sign up on the stand that normally holds gift cards that I found curious, indicating that if you wanted a Visa gift card, you had to ask for it at the register. The line was very long so we went to a nearby CVS instead. Found the rack with the gift cards, took it to the register. I did have the cash for it, but decided to put it on my credit card instead - and I'm glad I did.
The cashier scanned the card, added $20 it (plus a $5.95 processing fee - everything has a fee these days, doesn't it?) and we left. We got home, ate lunch, and then my kid tried to use the card.
As you can see from the photo at the top, four of the numbers have been scratched off the card, rendering it useless. This sent me down a huge rabbit hole.
This is apparently a "card draining" scam and it is rampant throughout the U.S. Either some of the numbers on the front are scratched off, the 3-digit code on the back is scratched off, or both. The card is typically also demagnetized so it can't be swiped and used at an in-person retailer.
From what I can glean from the THOUSANDS of posts about this online, this is happening before the cards even get to the stores - further up the chain. Thieves aren't physically going into each store and doing this, they are taking apart the cards, photographing them with the info intact, defacing them so as to make them useless, then adding the card information into a database or app that they can then check periodically (or maybe it notifies them? Apps can do everything nowadays) so as soon as the card is activated, they drain it of its balance immediately through online purchases. I don't know where or how in the supply chain this is happening, but let the buyer beware.
There are people who put down hundreds in cold, hard cash to buy these cards who are now completely out of luck. The thieves use the money and there's nothing you can do.
This is why they had the cards behind the register at Walgreens, but as I understand it, most of these cards are likely already compromised. You can't tell from looking at the card in it's cardboard container that it's been altered - you can't tell until you open it. The thieves are steaming the cards open and resealing them carefully so you can't detect that it's been tampered with before buying it. Since you can't see all the numbers on the front and back of the card when it's encased in its cardboard enclosure, you can't tell if it's been altered or not until after you buy it.
The main issuer of these cards is "Vanilla gift cards," which is being sued by the city of San Francisco because of their lack of effort in making the cards more secure. I'm sure more suits will follow.
Gift cards are non-refundable, but I returned to CVS with the card anyway to let them know their gift cards are compromised. The cashier was exasperated and said this has been a huge problem for them, and to call CVS to complain. I called CVS and they told me to call the card issuer. I tried calling the issuing bank and they referred me to Vanilla gift cards customer service. I spent several hours on hold trying to reach someone at Vanilla, finally someone picked up at an overseas call center, and the guy wanted my DATE OF BIRTH to process sending me out a new card. Um, no. I am not giving some stranger my birth date, that isn't necessary to send me a new gift card. After I protested he said they would mail me one out anyway, but I was suspicious and terminated the call.
Finally, I called my bank, Bank of America, who holds the Visa I used to purchase the gift card. They said once the transaction cleared I could dispute the charge, so when it cleared today, I called and disputed the charge with them.
I will get my money back, but other people who used cash to pay won't, and are out of luck.
I strongly recommend not purchasing ANY visa gift cards right now until this scam is under control or solved, or, if you are able, purchase an e-gift card through a secure online site and send it electronically instead of offering a real gift card, if your recipient can receive an e-gift card.
Hope this helps! Spread the word! Don't let scammers take your money!
If you find my advice helpful, you can subscribe so you never miss a post, and if you like, support my work by buying me a virtual coffee.