MOBILE, Ala. (WALA) - The Better Business Bureau says fraudsters are on the hunt to steal your gift card funds.
The holiday season is here and according to Capital One Shopping, 64% of U.S. consumers plan to buy gift cards for Christmas presents.
According to the BBB, with a scam called gift card draining on the rise, before purchasing these cards as a gift, buyers should take caution.
The FTC reported more than $200 million was stolen last year in this type of fraud.
Vice President of the Educational Foundation for the BBB Monde Donaldson said take a close look at the cards before spending money.
"It's when scammers actually go to retailers and outlets and they scan with a scanner and they start scanning numbers off the card, leaving it there hanging, and when you use it, guess what, it won't work," Donaldson said.
After the scammer has access to the card, Donaldson said they are able to make counterfeit cards, shop online or transfer the funds to their account.
One victim said a friend purchased a gift card at a local retailer and the packaging appeared to be intact. But, when they tried to use the card, there was no money on it. That's when they noticed a sticker had been inserted over the barcode through the packaging's window, putting the money right into the scammer's account.
The BBB said it's a good idea to buy cards sealed in packaging rather than loose cards on display. Stay away if the packaging has tears, open barcodes or wrinkles.
Donaldson said if you notice something is wrong with a gift card, let the retailer know immediately.
"The first thing you want to do when you're purchasing one is take your hand and take your finger and go over the thing and make sure it hasn't been tampered with it all," she said. "That there's not a piece of tape that if it's a scratch off kind if it's already been scratched off a little bit, you don't want that."
Donaldson said scammers also use phishing tactics to try and get people to put in gift card numbers in fake websites. If you have a gift card and you want to check the balance online, always visit the official website for the retailer.