UK shoppers are being urged to stay vigilant as gift card scams continue to increase, with criminals increasingly turning to vouchers as a way to bypass tighter bank security.
Consumer bodies Trading Standards and Report Fraud say stronger protections around bank transfers have pushed fraudsters towards gift cards, which are difficult to trace once the money has been spent.
Experts warn that criminals either tamper with gift cards while they are on shop shelves, draining the balance once the card is activated, or trick people into buying gift cards online and sharing the codes under false pretences.
Figures from Report Fraud suggest gift card fraud has increased by around 25% over the past two years, although the true scale is likely to be higher due to under-reporting. In 2023–24, the organisation received 9,386 reports of gift card fraud, with losses totalling more than £18.5 million.
Emma Johnson, 48, from Nottinghamshire, said she, her father and her brother were all victims of a gift card draining scam after buying cards from the same Tesco store within the space of a week. The family spent £120 on birthday gift cards, but when the recipient tried to use them, the balance had already been spent.
She said the experience was upsetting, explaining that buying a present only to discover it was worthless had left her with little confidence in purchasing gift cards in-store. She added that she did not want anyone else to go through the same experience. Ms Johnson believes the cards had been tampered with before purchase and urged shoppers to check that the number on the card matches the number printed on the receipt.
A Tesco spokesperson said the retailer has a robust set of technical and operational measures in place to prevent and deal with card tampering. Customers were advised to inspect gift cards carefully before buying them and to speak to customer services if they believe they have been victims of fraud.
Amanda Wolf, head of Report Fraud, said gift card scams represent an emerging crime type. While under-reporting makes it difficult to measure the full scale of the problem, intelligence suggests cases have risen by about a quarter in the past two years. She said this kind of pattern is not unusual when criminals identify new ways to exploit consumers and confirmed that the organisation plans to carry out a deeper review over the next 12 months.
She added that most reports are received in January, following the festive period when gift card use is highest. Victims are often caught out by fake online gift cards, cards that have been tampered with in-store, or scams where they are pressured into buying gift cards as a form of payment. Criminals also use phishing emails offering fake prizes or deals to lure people into handing over gift card details.
Ms Wolf advised consumers to buy gift cards only from reputable sellers, to check cards carefully for signs of tampering and to avoid using cards that appear poorly made or lack visible security features. She also recommended using two-factor authentication when shopping online and checking out as a guest unless using a trusted website. She urged shoppers to pause briefly before making a purchase, saying that taking a moment to stop and think can prevent fraud. She also said she would like to see stronger protections in shops, including keeping gift cards behind the till.
Louise Baxter, head of the National Trading Standards Scams Team, said it was not surprising that gift card fraud is on the rise and believes the crime is likely being under-reported. She said tighter controls on bank transfers and the relatively new nature of gift card scams mean many consumers do not expect to be targeted in this way.
She explained that criminals are diversifying their methods in response to increased security elsewhere, describing gift cards as attractive because they are difficult to trace and hard for consumers to prove were not simply given away. While more can be done to protect shoppers, she said responding to fraud can sometimes feel like a game of whack-a-mole. Ms Baxter also called for more public awareness campaigns and improved training for shop staff, particularly when customers are spending large sums on gift cards.
The Home Office said it is committed to bringing perpetrators of fraud to justice and confirmed that a new fraud strategy will be announced in the new year. It also urged the public to remember that no genuine organisation would ever ask for payment using gift cards.
Hannah Shimko, managing director of the Gift Card and Voucher Association, said the vast majority of gift cards are bought and used without issue and are supported by established consumer protections. She said retailers and issuers invest heavily in security systems, transaction monitoring and staff training, and share intelligence to combat fraud.
She has previously warned that placing gift cards behind the counter could add unnecessary friction for customers and, based on industry experience, lead to a significant drop in sales. Despite the rise in scams, she said gift cards remain one of the most popular and trusted ways to give, particularly during the Christmas period, and added that the industry remains committed to protecting customers and supporting legitimate use.
