While gift cards are a convenient gift to give this holiday season, they can also be a target for scammers.
Law enforcement agencies are warning about a scam called “card draining.”
Essentially, a scammer will take the pin and card number off a gift card, and then use the information to siphon the money.
According to the Federal Trade Commission, people reported more than $217 million in gift card fraud last year.
To avoid a gift card scam, there are a few red flags to look for.
First, inspect the card carefully before buying. The card number should be covered -- if it’s not, it might have been tampered with.
If you have issues with a card after buying it, you might be able to get your money back. Start by contacting the gift card company and asking for a refund.
You might have to provide information from the receipt, so don’t throw it away.
And if you think you’ve been scammed, make sure to report it at ReportFraud.FTC.gov.