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Gift card scam

Gift card scam
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StormChaser 19.5 yrs
~ 8 mos ago    
Gift card scam
 
Gift card scam reaches Houston area after $14M fraud bust, investigators warn.
 
Joy Addison, Reporter
 
Published:
January 28, 2026
 
HOUSTON - After a major gift card fraud bust tied to nearly $14 million in losses, investigators say the scam has now made its way into the Houston area.
 
Law enforcement is warning shoppers to take a closer look before buying gift cards, especially from in-store racks that may appear harmless at first glance.
 
➡️ How the gift card scam works -
 
Rows of gift cards lining store kiosks may look untouched, but investigators say criminals are quietly tampering with them before they ever reach the checkout counter.
 
According to Scott Hamilton with the Texas Financial Crimes Intelligence Center (FCIC), thieves remove gift cards from store racks and take them to another location.
 
"They pull the gift cards off, steal them, take them back to a different location, and then they'll very meticulously open the package," Hamilton said.
 
Once opened, thieves copy the card number and security information from the back of the card and enter it into a computer program.
 
They then reseal the packaging and return the cards to the store-often placing them back on the rack at eye level.
 
When an unsuspecting shopper later buys and activates the card at checkout, the thieves receive an alert and quickly drain the balance.
 
"By the time somebody opens it, it's already been emptied and nobody knows," Hamilton said.
 
➡️ How to spot a tampered gift card -
 
Police say the key to avoiding the scam is closely inspecting the packaging before you buy.
 
Shoppers should avoid cards that show:
 
*Frayed or uneven edges
Excess glue.
 
*Packaging that looks re-pressed or resealed.
 
*Investigators also say thieves often take cards from the bottom of the rack, then return them to more visible spots.
 
"If it doesn't look like every other one of them, I would shy away from that one," Hamilton said.
 
He also recommends grabbing gift cards from the back of the rack, rather than the front.
 
Authorities recently arrested three men found with more than 400 gift cards, allegedly connected to nearly $14 million in fraud statewide.
 
A new Texas law now allows police to arrest suspects simply for possessing multiple tampered or unactivated gift cards, even before a victim reports a loss. Those charges can rise to a state jail felony.
 
➡️ What to do if you're a victim -
 
*Police say if you purchase a gift card and discover the balance has already been used, you should:
 
*Report it to the store immediately.
 
*File a report with your local police department
Investigators stress that every report matters, regardless of the dollar amount.
 
www.click2houston.co m/news/local/2026/01 /29/gift-card-scam-r eaches-houston-
GirlonaBoat, golfshot and TEXASGIRLMAMMA + 8 more reacted
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CatalinaKitKat Top Forum Contributor3.1 yrs
~ 8 mos ago    
StormChaser :
Thanks for the information and making everyone aware. I often buy gift cards for friends or family, and will be sure to look them over better before I purchase any.
Donnawisdom, StormChaser and Kittle reacted
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elguapo 18.1 yrs
~ 8 mos ago    
There goes my retirement fund.
Lulu45, Donnawisdom and Spork + 1 more reacted
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KingwoodNana 2.5 yrs
~ 8 mos ago    
StormChaser :
Isn't the security code covered and need to be scratched off? I suppose they could recover it. I mainly buy
e-cards now. That is also what I use for my business. I sell them and kept records of who bought them and for whom. Easier for a small business.
Donnawisdom and Kittle reacted
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StormChaser 19.5 yrs
~ 8 mos ago    
StormChaser : Isn't the security code covered and need to be scratched off? I suppose they could recover it. I mainly buy e-cards now. That is also what I use for my business. I sell them and kept records of who bought them and for whom. Easier for a small business.
 
KingwoodNana : They recover it.
KingwoodNana reacted
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cbear Top Forum Contributor15.6 yrs
~ 8 mos ago    
Gift card scam Gift card scam reaches Houston area after $14M fraud bust, investigators warn. Joy Addison, Reporter Published: January 28, 2026 HOUSTON - After a major gift card fraud bust tied to nearly $14 million in losses, investigators say the scam has now made its way into the Houston area. Law enforcement is warning shoppers to take a closer look before buying gift cards, especially from in-store racks that may appear harmless at first glance. ➡️ How the gift card scam works - Rows of gift cards lining store kiosks may look untouched, but investigators say criminals are quietly tampering with them before they ever reach the checkout counter. According to Scott Hamilton with the Texas Financial Crimes Intelligence Center (FCIC), thieves remove gift cards from store racks and take them to another location. "They pull the gift cards off, steal them, take them back to a different location, and then they'll very meticulously open the package," Hamilton said. Once opened, thieves copy the card number and security information from the back of the card and enter it into a computer program. They then reseal the packaging and return the cards to the store-often placing them back on the rack at eye level. When an unsuspecting shopper later buys and activates the card at checkout, the thieves receive an alert and quickly drain the balance. "By the time somebody opens it, it's already been emptied and nobody knows," Hamilton said. ➡️ How to spot a tampered gift card - Police say the key to avoiding the scam is closely inspecting the packaging before you buy. Shoppers should avoid cards that show: *Frayed or uneven edges Excess glue. *Packaging that looks re-pressed or resealed. *Investigators also say thieves often take cards from the bottom of the rack, then return them to more visible spots. "If it doesn't look like every other one of them, I would shy away from that one," Hamilton said. He also recommends grabbing gift cards from the back of the rack, rather than the front. Authorities recently arrested three men found with more than 400 gift cards, allegedly connected to nearly $14 million in fraud statewide. A new Texas law now allows police to arrest suspects simply for possessing multiple tampered or unactivated gift cards, even before a victim reports a loss. Those charges can rise to a state jail felony. ➡️ What to do if you're a victim - *Police say if you purchase a gift card and discover the balance has already been used, you should: *Report it to the store immediately. *File a report with your local police department Investigators stress that every report matters, regardless of the dollar amount. www.click2houston.co m/news/local/2026/01 /29/gift-card-scam-r eaches-houston-
 
StormChaser : Sickening!!
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Zakangel 6.9 yrs
~ 8 mos ago    
Gift card scam Gift card scam reaches Houston area after $14M fraud bust, investigators warn. Joy Addison, Reporter Published: January 28, 2026 HOUSTON - After a major gift card fraud bust tied to nearly $14 million in losses, investigators say the scam has now made its way into the Houston area. Law enforcement is warning shoppers to take a closer look before buying gift cards, especially from in-store racks that may appear harmless at first glance. ➡️ How the gift card scam works - Rows of gift cards lining store kiosks may look untouched, but investigators say criminals are quietly tampering with them before they ever reach the checkout counter. According to Scott Hamilton with the Texas Financial Crimes Intelligence Center (FCIC), thieves remove gift cards from store racks and take them to another location. "They pull the gift cards off, steal them, take them back to a different location, and then they'll very meticulously open the package," Hamilton said. Once opened, thieves copy the card number and security information from the back of the card and enter it into a computer program. They then reseal the packaging and return the cards to the store-often placing them back on the rack at eye level. When an unsuspecting shopper later buys and activates the card at checkout, the thieves receive an alert and quickly drain the balance. "By the time somebody opens it, it's already been emptied and nobody knows," Hamilton said. ➡️ How to spot a tampered gift card - Police say the key to avoiding the scam is closely inspecting the packaging before you buy. Shoppers should avoid cards that show: *Frayed or uneven edges Excess glue. *Packaging that looks re-pressed or resealed. *Investigators also say thieves often take cards from the bottom of the rack, then return them to more visible spots. "If it doesn't look like every other one of them, I would shy away from that one," Hamilton said. He also recommends grabbing gift cards from the back of the rack, rather than the front. Authorities recently arrested three men found with more than 400 gift cards, allegedly connected to nearly $14 million in fraud statewide. A new Texas law now allows police to arrest suspects simply for possessing multiple tampered or unactivated gift cards, even before a victim reports a loss. Those charges can rise to a state jail felony. ➡️ What to do if you're a victim - *Police say if you purchase a gift card and discover the balance has already been used, you should: *Report it to the store immediately. *File a report with your local police department Investigators stress that every report matters, regardless of the dollar amount. www.click2houston.co m/news/local/2026/01 /29/gift-card-scam-r eaches-houston-
 
StormChaser : There was a discussion around Christmas about this very thing. First year I have not purchased gift cards. For my DS, I hid scrolls in the tree with logos of the stores and amounts. Like one was Cavender's for new boots etc. After he opened them I just transferred cash to him. He could spend it however he chose. Funny…he asked me on Christmas break to go to Cavender's with him. And wouldn't you know it….the coolest boots were more than what he had been given. Yep, I am a sucker! 😆. They were beautiful! When my DH saw them he looked puzzled. He knew darn well what had transpired and knows how much those boots probably cost. We refused to tell him anything and told him it was none of his business!! He just shook his head! 😆.
StormChaser reacted
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EasyPeasy 9.6 yrs
~ 8 mos ago    
Is there anywhere you can buy a gift card and know it's secure?
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StormChaser 19.5 yrs
~ 8 mos ago    
Is there anywhere you can buy a gift card and know it's secure?
 
EasyPeasy : If they are behind the counter, they are usually OK
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Furface11 3.2 yrs
~ 8 mos ago    
StormChaser :
This has been around since before Covid.
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