Two gift-card scams leave victims out of pocket as retailers urged to tighten security

Fraudsters are exploiting high-street gift vouchers in two linked scams that have cost victims hundreds and in some cases thousands of pounds, consumer protection experts and police say.

In one method, known as "voucher draining," criminals capture voucher numbers and PINs from cards on display in stores and later use them online once the cards have been loaded with cash. In a second widely reported tactic, scammers phone victims posing as officials and insist victims buy gift cards and hand over codes to avert a fictional emergency. Both scams have risen in recent months and are expected to intensify as shoppers buy more vouchers before Christmas.

Voucher draining typically begins with fraudsters noting down or photographing gift card numbers and covered PINs while the cards are still on display. When a customer later buys and loads money onto the card, criminals use the recorded details to check balances and quickly spend the funds, often testing with a small transaction before draining the remaining sum, investigators said.

Luke Charters, the Conservative MP for York Outer, reported such an incident after receiving a £75 M&S gift card following the birth of his child. He said a test transaction of £40 was made within 20 minutes of the card being purchased in Leeds and the remaining balance spent in another branch in Manchester. Charters said he had heard similar reports from constituents, including elderly relatives left without promised presents.

In the phone-based scam, often called the "voucher courier" trick, callers impersonate representatives of government agencies, banks or even police and tell victims they must immediately buy gift cards to resolve a bogus problem. They may ask victims to send card codes, hand over vouchers to a supposed courier, or claim the cards will be used as bait to catch criminals. Once the fraudsters have the voucher codes, they quickly spend or resell the cards.

Detective Sergeant Ben Hurley of the City of London Police's Dedicated Card and Payment Crime Unit said gift card fraud was increasing and commonly used to launder money. "If a scammer gets a £100 gift card loaded with money that isn’t his and sells it on for £50 he profits by £50," he said.

Retailers and industry groups said they are taking measures to reduce opportunities for fraud, including purchase limits, delayed activation, enhanced fraud monitoring and clearer in-store messages. A spokesman for Marks & Spencer said the company takes gift-card security seriously, that colleagues remain vigilant, and that it had apologised to Charters and arranged a refund. Boots has placed signs in some stores warning: "Gift cards are for gifts, not for payments. No genuine business or government agency will ever insist you pay them with a giftcard." Boots declined further comment when approached.

The Gift Card & Voucher Association said the sector is working to close down fraud opportunities and urged public awareness. "Gift cards are safe, flexible and hugely popular, but their convenience can sometimes be exploited by scammers," the association said.

Consumer advocates and enforcement officials offered practical steps for people who suspect they have been targeted. They advised pausing before handing over any personal or financial information, refusing requests to pay with gift cards, contacting banks immediately if payment details are exposed, and reporting incidents to Action Fraud. Victims of drained gift cards should contact the retailer and the purchaser as soon as possible and keep receipts and proof of purchase.

Under the Consumer Rights Act 2015, goods sold must be fit for purpose, and industry and legal experts say that if a card is activated and immediately used fraudulently the retailer may have a duty to replace it or refund the buyer. Using a credit card for the purchase can also provide extra protection through Section 75 of the Consumer Credit Act and potential chargebacks, advisers said.

Scott Dixon, founder of complaints resolver Complaints, advised consumers to cite breach of contract under the Consumer Rights Act when pushing for refunds and to retain documentation proving fraudulent use. Detective Sergeant Hurley added that transactions made in stores can be challenged if a victim was not near the location of the purchase and can show evidence to support that claim.

Law enforcement and retailers urged staff to be alert to suspicious behaviour, such as customers buying large numbers of vouchers. Charters said retailers should consider securing gift cards behind counters to prevent pre-purchase inspection and removal of PIN covers.

As the run-up to Christmas typically increases voucher turnover, officials said public awareness and retailer controls will be central to preventing further losses. Anyone who believes they have been defrauded should report the incident to their bank, the retailer and Action Fraud without delay.