Why Your New Gift Card Might Have a $0 Balance

Richard Zelinka often sends Vanilla Visa gift cards to his sister in San Diego.

But recently, she had a problem.

“She called me one time and said, ‘The last cards you sent me had money taken out of them,’” Zelinka said.

The cards, which totaled $900, had been completely wiped out.

“I was just trying to figure out how this could happen,” said Zelinka.

The analysts at WalletHub, a personal finance site, explained to the I-Team how it can happen.

Scammers discreetly break into gift card packaging while the cards are still on the store rack. They steal the card number and any PIN information they might need, and then repackage the card. They plug these numbers into their computers, and a special software alerts them when a card is purchased and activated. 

“Once they know something’s activated, they can then use it at their own leisure. And they’ll probably use it right away before someone else can,” said Jill Gonzalez, a WalletHub analyst. 

And, when customers complain about empty gift cards, Gonzalez said there’s often little recourse. 

“Because there is not the same regulation for gift cards as there is with credit cards or debit cards. It’s hard to get justice for this type of scam,” she said.

The I-Team reached out to CVS, where Zelinka bought the cards. In a statement, the company said, in part: “There were no signs of tampering” and “gift card scams are a challenge to all retailers.”

CVS kicked Zelinka’s problem to the manager of Vanilla Visa gift cards, who told the I-Team, in part, that it “takes fraud seriously” and it “continues to invest in solutions to protect customers.” It also sent Zelinka new gift cards totaling $900.

“That’s a big chunk of change for anybody. It meant the world. And I was so grateful,” he said. 

• Avoid big kiosks where it’s easy for a scammer to tamper with the cards.
• Buy cards that are locked up or behind the cashier.
• Send a card electronically through email -- it's the safest.