Gift card fraud has become a growing concern in Ontario, with incidents on the rise as criminals manipulate cards to steal funds before they are purchased. Audrey Jamie of Markham, Ontario, shared her frustrating experience when she bought 10 Amazon gift cards at Shoppers Drug Mart in October. Eight of the cards were invalid, with the last four digits of the claim codes scratched off. Although the cards appeared fine when purchased, her employees couldn’t use them.
Jamie sought assistance from Shoppers Drug Mart but was advised to contact Amazon. After a week of waiting for a response and facing a blame game between the two companies, Jamie was eventually contacted by a spokesperson for Loblaw, the parent company of Shoppers Drug Mart. The issue was resolved, and Jamie received a refund of $400. “Gift card fraud is a problem that affects the entire retail industry, and store employees are trained to identify card tampering and other fraudulent activity,” the spokesperson explained.
This type of fraud, known as a “drain scam,” involves criminals manipulating cards to steal the funds loaded onto them before the purchaser has a chance to use them. A similar incident occurred earlier this month when a Mississauga woman discovered that her $250 Visa prepaid card was nearly empty.
To protect yourself from becoming a victim of gift card fraud, experts recommend carefully checking the card before purchasing, choosing cards that are stored behind the counter in stores, and always keeping your receipt.