CVS Gift Card Scam | Gift Card Draining/Tampering

The CVS gift card scam refers to a large-scale “gift card draining” fraud operation recently busted in California, where criminals manipulated CVS gift cards to steal their funds. 

The suspects would remove gift cards from displays, record or alter the activation information, reseal the cards in original packaging, and return them to shelves. When customers bought these tampered cards and activated them, the scammers accessed and drained the funds on the cards.

This scheme involved hundreds of CVS stores across California and resulted in the seizure of about 25,000 compromised gift cards. The suspects were arrested and face charges including burglary, grand theft, forgery, and conspiracy.

This form of scam exploits the fact that recipients often do not report the loss since gift cards are bought as gifts. The losses from gift card frauds like this can total hundreds of millions of dollars nationwide annually.

Common Types of CVS Gift Card Scams

1. Gift Card Draining/Tampering:

   • This is a physical scam. Scammers will go into stores and tamper with gift cards on the display racks. They might:
     • Steal the card number and PIN by carefully peeling back the protective strip.
     • Replace the legitimate barcode on the gift card packaging with a fake one that links to a card they own.
     • Once a customer buys the tampered card and loads money onto it, the funds are instantly transferred to the scammer’s account. This is a massive problem that has led to recent arrests, including two men who were reportedly involved in a statewide scheme affecting hundreds of CVS stores in California.

2. Phone and Online Impersonation:

   • This is the most prevalent type of scam targeting consumers. Scammers will call, text, or email you and pretend to be from a trusted organization. They create a sense of urgency and demand that you pay with a gift card, often specifying a store like CVS. Common impersonations include:
     • Government Agencies: Scammers claim to be from the IRS, Social Security Administration, or a police department, saying you owe back taxes or fines.
     • Tech Support: They pretend to be from a company like Microsoft or Apple and tell you your computer has a virus that can only be fixed with a gift card payment.
     • Family Members: They impersonate a loved one in an “emergency” and beg you to buy gift cards to send them money.

3. Survey and Phishing Scams:

   • You might receive a fraudulent email or text message that looks like it’s from CVS. The message will say you’ve won a free gift card or a prize for taking a survey. The link, however, leads to a fake website designed to steal your personal information or install malware on your device.

Also Read : mailer-daemon@googlemail Spam | Why is it a Scam?

How to Protect Yourself

• Treat Gift Cards Like Cash:

  • If a gift card is lost or stolen, it is very difficult to recover the funds.

• Inspect Cards Carefully:

  • Before you buy, examine the card for any signs of tampering. Check for:
    • Scratches on the PIN or code area on the back.
    • Peeling or damaged packaging.
    • If anything looks suspicious, ask a store associate for a different card.

• Never Pay with a Gift Card:

  • This is the most important rule. No legitimate business, government agency, or individual will ever ask you to pay them with a gift card. If anyone makes this demand, it is a scam. Hang up immediately.

• Be Skeptical of “Urgency”:

  • Scammers use urgency to prevent you from thinking clearly or asking questions. Slow down and consider why someone is demanding immediate payment.

• Report Scams:

  • If you have been a victim, report the scam immediately to the gift card issuer (the company that makes the card) and to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. You should also report the crime to your local police.

CVS and other retailers have been working to combat these scams by putting up warning signs and training their employees to recognize red flags, but the scammers are constantly evolving their methods. The best defense is to be aware of the warning signs and to trust your instincts.