Gift Card Draining: How Organized Crime Steals Millions From Shoppers

MoneyPersonal FinanceGift Card Draining: How Organized Crime Steals Millions From ShoppersBySteve Weisman,Contributor.Forbes contributors publish independent expert analyses and insights. Steve Weisman writes about white-collar crime.Follow AuthorJun 08, 2026, 09:25am EDTMiami Beach, Florida, Publix grocery store supermarket, gift cards display, Stop beware of scams warning sign. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)Jeffrey Greenberg/Universal Images Group via Getty ImagesGift card draining has become a major problem with organized crime groups, primarily Chinese gangs, operating wide-scale gift card draining. Gift card draining occurs when scammers tamper with gift cards in a store so that when an unwitting customer buys a gift card, the value of the gift card becomes under the control of the scammer.The most common way gift card draining occurs involves scammers going to racks of gift cards in stores and using handheld scanners that are easy to obtain, read the code on the strip of the card and the number on the front. They then put the card back in the display and periodically check with the retailer by calling its 800 number to find out whether the card has been activated and what the balance is on the card. Once they have this information, they either create a counterfeit card using the information they have stolen or order items online without having the actual card in hand.Another common way gift card draining occurs is when scammers place a sticker with the barcode of a gift card that the scammers possess over the actual barcode of the gift card in the rack. Thus, when the card is taken by the gift card purchaser to the checkout counter to have the card activated, the funds used to purchase the gift card are credited to the card of the scammer. It is not until the gift card purchaser tries to use his or her card that it is discovered that there are no funds credited to the card.In 2025, three Chinese nationals were convicted f...