Gift Card Fraud: Shoppers Warned as Codes Stolen in Supermarkets
- A growing number of shoppers are discovering that gift cards purchased from major retailers are already compromised, leaving them unable to use the full value or any value...
- Stephen Atkins, 55, of Crosby, recently experienced this firsthand when a £50 John Lewis gift card purchased for his 80-year-old mother, Flo, at an Asda supermarket proved to...
- The investigation revealed that the card’s code had been accessed and used fraudulently online before Atkins’ mother even had a chance to use it.
Gift Card Fraud on the Rise as Shoppers Fall Victim to Sophisticated Scams
A growing number of shoppers are discovering that gift cards purchased from major retailers are already compromised, leaving them unable to use the full value or any value at all. The scam, which involves fraudsters stealing redemption codes before purchase, is prompting calls for increased security measures from supermarkets and gift card providers.
Stephen Atkins, 55, of Crosby, recently experienced this firsthand when a £50 John Lewis gift card purchased for his 80-year-old mother, Flo, at an Asda supermarket proved to be worthless. He discovered on , when attempting to use the card at John Lewis in Liverpool ONE, that the funds had already been redeemed. “It said there was no money on the card,” Atkins explained. “My mum kept the receipt, so we went to Asda with it and the gift card. They took it away and checked it and said, on their side, the money had been put on the voucher.”
The investigation revealed that the card’s code had been accessed and used fraudulently online before Atkins’ mother even had a chance to use it. John Lewis determined the card had been “compromised,” meaning the code had been stolen and used to make a purchase shipped to a different address. Despite providing a receipt, neither Asda nor John Lewis initially offered a refund, directing Atkins to contact his bank and Action Fraud.
“Asda are basically selling gift cards on their shelves now that could well have been compromised,” Atkins stated. “There’s no way of them knowing that little thieves haven’t gone in and taken pictures of the codes. A woman at Asda said they’d had a memo warning about fraud on gift cards. But I said they’re still out on the shelves. If they’ve been told there’s been fraud, why are they still on the shelves? They should be behind the counter so people cannot get at them.”
This type of fraud, known as “gift card draining,” involves fraudsters physically accessing gift cards in stores, removing the sticker concealing the redemption code, photographing it, and then replacing the sticker before the card is purchased. Once the card is activated by an unsuspecting buyer, the fraudsters can immediately use the code online.
The problem isn’t limited to Asda and John Lewis. Recent reports indicate a surge in these scams across the UK and internationally. Neil Bampton, 36, reported a similar incident in November 2025, discovering a tampered Amazon gift card purchased from a Tesco in Mansfield, Nottinghamshire. He successfully obtained a refund only after contacting the BBC.
Financial Impact and Scale of the Problem
The financial toll of gift card fraud is substantial. Report Fraud, the national body for reporting incidents of fraud, reported a roughly 25% increase in gift card scam reports over the past two years, with seeing 9,386 reports and over £18.5 million lost. In the United States, an estimated $217 million was lost to this type of scam in .
A major gift card fraud bust in January tied to nearly $14 million in losses suggests the problem is escalating, and investigators believe the scam is now spreading into areas like Houston, Texas.
Attorney General Brian Schwalb in Washington D.C. Issued an alert warning residents about gift card scams on , highlighting the widespread nature of the threat. TheStreet.com reported in December that these scams have already cost hundreds of millions of dollars, impacting both consumers and retailers.
Retailer Responses and Consumer Protection
Asda stated they have fraud-prevention measures in place, including value limits and in-store guidance encouraging customers to be cautious. A spokesperson said, “If a gift card has already been redeemed and the customer does not recognise the transaction, we recommend contacting the gift card provider to investigate, as only they can see when and how the card was redeemed, so it can then be reported to Report Fraud UK.”
John Lewis acknowledged the issue and stated they regularly review security measures. A spokesperson said, “We’re sorry to hear about Mrs. Atkins’ experience. We sell thousands of gift cards each year, and cases like this are rare, especially as we regularly review our security measures and are taking action to stay one step ahead of fraudsters.”
However, consumer rights expert Martyn James argues that the Consumer Rights Act should entitle consumers to a refund for compromised gift cards, as they are not of satisfactory quality or fit for purpose. He explains that retailers should be responsible for ensuring the security of their gift cards and that consumers should be able to pursue a complaint to recover their funds.
The incident underscores the vulnerability of gift cards and the need for increased vigilance from both retailers and consumers. While retailers are taking steps to address the issue, the ease with which fraudsters can exploit these vulnerabilities suggests that more robust security measures are needed to protect shoppers from falling victim to these increasingly sophisticated scams.
Anyone affected by a suspected gift card scam can report their concerns to police online at https://www.reportfraud.police.uk.