The Antelope Valley Times

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L.A. County Supervisor warns consumers of gift card draining scam

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Los Angeles County Supervisor Janice Hahn is urging retailers to protect consumers from a growing gift card scam problem amid holiday shopping.

At a news conference on Thursday, Dec. 21, Hahn shared how she fell for this type of scam after buying a gift card at a CVS for her nephew’s birthday, which was then drained before he could use it.

Hahn urged retailers to place gift cards behind glass or behind a service desk while scams continue. Hahn also encouraged retailers to better train check-out clerks to recognize fake barcodes placed on cards or add warning signage on gift card displays.

“I am fortunate,” Hahn said in a statement. “What I lost on this gift card I was easily able to repay in cash to my nephew. But I am worried about the people who are barely scraping by, who can’t afford to be ripped off.”

The scam, known as “gift card draining,” works in two ways. In the first instance, scammers attach a barcode from a card they already have to an unsold gift card in a store. When someone buys the tampered card and loads money onto it, they are loading money onto the scammer’s card. In the second instance, a scammer steals the details of a legitimate gift card, and then places it back on a store rack. That scammer can then track when the card is bought and loaded and then quickly drain the money, according to Hahn’s office.

“I am calling on retailers like CVS, Target, Walgreens and others, to take immediate steps to protect their own shoppers from these scams,” Hahn said in a statement. “It should not be up to consumers to defend themselves from scams when you have the power to prevent them all together.”

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4 comments for "L.A. County Supervisor warns consumers of gift card draining scam"

  2. IS IT ME OR ARE POLITICS COMING OUT THE WOODWORKS..
    1ST BARGER OFFERS REWARD FOR MISSING DEVICE THAT CAN BE HARMFUL NOW HAHN WITH CARD SCAMMING..
    MY PREMINITION WHO’S GONNA WIN A RACE

  3. This happened to my child today with a gift card from his grandmother. So be careful in the store. I assume they get the credentials from a card and watch for someone to bu that one.

  4. Gift cards were never popular even when everything works perfectly. Certain people are convinced that giving cold cash is in some way rude. When actually cash is always more preferred.