The holidays are a great time to purchase gift cards because one size truly fits all. However, consumers may wish to consider purchasing gift cards at their local community bank instead of from mass merchandising kiosks in supermarkets and big-box stores due to a new gift card scam called, "draining."

Draining occurs when criminals take the information from un-purchased gift cards found on store kiosks. Once the consumer unsuspectingly purchases these compromised cards, the criminal "drains" the funds loaded onto the cards before the consumer even leaves the store!

Holiday shoppers who purchase gift cards from a bank are assured that cards are stored in a secure environment and only touched by bank employees. Reduce the potential of gift card "draining" with these tips:

  • Purchase gift cards from local mom-and-pop shops. This helps your small business community and chances are, criminals are betting on the popularity of large box stores or popular online retailers to conduct their scams.
  • Purchase gift cards from your local community bank where only bank employees have access to the card numbers and PINs.
  • Keep receipts for cards purchased.
  • If  you do purchase gift cards from kiosks, be sure that the cards appear in good condition -- avoid bent cardholders and dented protective covers. Look for cards that are tamper-free. The PIN should remain untouched; if it appears to be scratched off, do not purchase the card.
  • Report suspicious fraud to the gift card company to request a freeze on the card or a potential refund.