The holiday season, a time traditionally associated with thoughtful giving, has unfortunately become a prime opportunity for sophisticated scams that leave consumers bewildered and out of pocket. A recent incident, brought to widespread attention by a TikTok user, has cast a spotlight on a particularly troubling scheme involving Apple gift cards purchased at major retail outlets. This unsettling situation serves as a critical public service announcement, urging heightened vigilance among shoppers.
TikTok user @tommyxlin recently shared her alarming experience, detailing how she and her husband purchased a $100 Apple gift card from Target. Upon opening the card, they were dismayed to discover that the barcode, essential for activation and use, had been completely whited out. This rendered the gift card entirely unusable, transforming a thoughtful gesture into a worthless piece of plastic.
Seeking recourse, @tommyxlin promptly returned to Target, expecting a refund for the faulty product. However, the retailer reportedly refused to issue a refund, directing the couple instead to contact customer service directly. This initial refusal highlights a common challenge consumers face when navigating complex fraud situations involving third-party gift cards.
Undeterred, @tommyxlin conducted an impromptu investigation within the Target store, documenting her findings in a compelling video. She opened several other $100 Apple gift cards from the display, revealing that these, too, had their access codes visibly whited out. Curiously, when she examined a $25 Apple gift card, its barcode remained clearly visible and untampered.
The TikToker’s video quickly amassed significant attention, garnering 1.5 million views initially and later exceeding 2.5 million. Her urgent warning specifically targeted the $100 Apple gift cards at Target, emphasizing the retailer’s refusal to assist with a refund. This widespread sharing underscores the communal nature of consumer protection in the digital age.
Viewer comments on the viral video illuminated several facets of the problem. Many observed that Target’s ability to resolve Apple gift card issues is limited, often necessitating direct contact with Apple customer service, as indicated on the cards themselves. The imperative to “KEEP YOUR RECEIPT” was a recurring piece of advice from experienced consumers.
Several individuals claiming to be retail workers or target employees echoed the sentiment that store policies often prevent them from processing returns for gift cards. One commenter noted, “I work at target and somebody actually came in today to complain about this but it goes against our store policy we can’t return gift cards.” This internal policy creates a significant hurdle for defrauded customers seeking immediate resolution.
Another critical insight from viewers highlighted the seasonal surge in gift card scams, particularly during the holidays. Scammers, becoming increasingly sophisticated, exploit the increased volume of transactions. A commenter from a gift card company even expressed intent to “bring it up and ask” about the quality control measures for these cards, indicating potential industry awareness of the issue.
Adding to the growing body of evidence, many other TikTok users shared their own similar experiences with $100 Apple gift cards. Phrases like “i got scammed from the hundred dollar one,” “I have got scammed by them too,” and “Happened to me too” flooded the comments section. This pattern of identical complaints points towards a systemic problem rather than isolated incidents.
In a follow-up video, @tommyxlin provided a close-up view of the compromised gift card. She detailed their unsuccessful attempts to scratch off the white-out material covering the access code. Lamenting the robustness of the tampering, she stated, “Whatever they use is so strong, you cannot remove it.” This detail underscores the deliberate and professional nature of the fraud.
The phenomenon of whited-out access codes on gift cards is a stark reminder of the broader problem of gift card draining. Thieves employ various methods to compromise gift cards, often before they are even purchased by an unsuspecting consumer. These tactics are designed to steal the card’s value as soon as it is activated.
One common method involves scammers using handheld scanners to clandestinely read the code on the magnetic strip and the number on the front of the gift cards displayed in stores. After recording this critical information, they discreetly return the tampered card to the rack. Subsequently, these fraudsters periodically contact the retailer’s 800 number to ascertain if the card has been activated and to check its balance. Once activated, they either create a counterfeit card or use the stolen information to make online purchases, emptying the card’s value before the legitimate purchaser has a chance to use it.
Another insidious method of gift card draining involves scammers placing a sticker with the barcode of a gift card they already possess over the actual barcode of a card on the display rack. When a consumer then takes this card to the checkout counter for activation, the funds intended for the legitimate card are, in fact, credited to the scammer’s card. The unsuspecting buyer only discovers the fraud when they attempt to use their seemingly activated card and find it devoid of funds.
Many gift cards incorporate a PIN (Personal Identification Number) hidden beneath a covering material, designed to enhance security, particularly for online transactions. However, scammers exploit this feature by scratching off the covering, recording the PIN, and then carefully re-covering it to appear untouched. Consumers, often unaware of this specific vulnerability, might not notice that the PIN on their purchased card has already been compromised.
Beyond these direct card-tampering schemes, gift cards are also central to a vast array of imposter scams. These schemes involve fraudsters posing as credible entities, such as large corporations or government agencies like the IRS. They leverage a false sense of authority or urgency to coerce victims into purchasing gift cards as a form of payment.
According to data from the Federal Trade Commission (FTC), imposter scams are a significant financial threat to consumers. In 2024, Americans reportedly lost $2.95 to imposter scams, making it the second most costly scam after investment fraud. These statistics underscore the pervasive and financially damaging nature of these deceptive practices.
Historically, specific retailers and gift card types have been favored by scammers. In 2021, FTC data indicated that Target gift cards were the most popular choice, with scammers requesting them twice as often as the next most common gift card. More recent data reveals a shift, with Apple gift cards now being the most frequently used by scammers, while Target gift cards rank as the second most popular.
One harrowing example involved Robert Reese, a plaintiff in a class action lawsuit against Target, who received an email from a scammer impersonating an Amazon customer service representative. The scammer convinced him to send $10,800 in gift cards, instructing him to acquire $6,000 of that amount by purchasing twelve $500 gift cards from Target. This illustrates the elaborate narratives scammers construct to defraud victims.
These widespread issues have led to significant legal action. A class action lawsuit is currently pending in Minnesota, where Target is incorporated. This lawsuit involves consumers from 21 states, including two individuals from Maryland, who allege that Target knowingly and intentionally sells fake Apple gift cards. The plaintiffs claim that Target is aware of these fraudulent activities but has not taken sufficient steps to prevent them.
Matias Giraud, another Target customer involved in the litigation, recounted his experience of purchasing eight $100 gift cards for an iPhone, only to discover that two were fake. Fortunately, he identified the fraud immediately, allowing Apple to send him a new code before the scammer could steal the value. This quick action, however, is not always the outcome for many less fortunate consumers.
Cybersecurity expert Will Caput highlights systemic vulnerabilities contributing to this problem. He points out that displaying gift cards openly, rather than behind a cash register or in a vending machine, creates significant opportunities for tampering. Caput also stresses the importance of trusting the entire supply chain, from card creation to delivery, to prevent interception and manipulation by fraudsters.
In response to these allegations and pending litigation, a Target spokesperson stated, “While we cannot comment on pending litigation, we take significant steps to combat this type of criminal activity and protect consumers.” This response acknowledges the seriousness of the issue while adhering to legal protocols.
The most fundamental principle for consumers to remember in avoiding gift card scams is unequivocally clear: gift cards are exclusively for gifts, not for payments. Any request for payment through gift cards for a business transaction, government fee, or any other service, should immediately be recognized as a scam. The IRS, for instance, explicitly states on its website that it does not accept gift cards as payment for taxes or any other fees.
Scammers employ specific tactics to ensnare victims. They frequently create a sense of panic and urgency, pressuring individuals to act without thinking or consulting trusted advisors. They often instruct victims on the specific type of gift card to purchase, such as Google Play, Apple, or Amazon cards, and direct them to particular stores like Walmart, Target, CVS, or Walgreens. In some cases, scammers will even stay on the phone with victims while they are in the store, loading money onto the cards.
Another critical red flag is when a scammer asks for the gift card number and PIN from the back of the card. Providing these numbers grants the scammer immediate access to the funds loaded onto the card, even if the victim retains the physical card. It is imperative to slow down, disconnect from the scammer, and never provide these sensitive codes.
Scammers concoct various narratives to trick individuals into buying gift cards. Some claim to be from government agencies, such as the IRS or Social Security Administration, demanding immediate payment for taxes or fines. Others pose as tech support from companies like Microsoft or Apple, alleging computer problems and requiring payment for fixes. No legitimate government agency or tech support service will ever demand payment via gift card.
Emotional manipulation is also a common tactic. Scammers might pretend to be a friend or family member in an emergency, sometimes using voice cloning technology, and urgently request money in the form of gift cards, often urging secrecy. Always verify such requests by directly contacting the loved one through a known number.
Other scam scenarios include notifications of prize winnings that require upfront payment in gift cards for fees, or threats from utility companies to cut off service unless immediate gift card payment is made. Romance scammers frequently solicit gift cards from individuals they develop online relationships with. Additionally, a scammer might send a check for an amount greater than expected, instructing the victim to deposit it and return the difference in gift cards; this check will invariably be fake.
To proactively protect against gift card draining and other forms of tampering, consumers should adopt a cautious approach at the point of purchase. Always inspect the gift card thoroughly to ensure that the barcode has not been tampered with in any way. Crucially, confirm that the PIN, if present, is still securely covered and has not been scratched off.
Whenever possible, prioritize purchasing gift cards from behind the customer service desk rather than from open display racks. This reduces the opportunity for unauthorized access and manipulation. If purchasing a preloaded gift card, ask for it to be scanned at the counter to verify that it still holds its full stated value before completing the transaction.
For those seeking a completely secure alternative, purchasing e-gift cards from reputable online retailers like Amazon offers significant advantages. As observed by consumers, this method has proven reliable and free of tampering issues. The recipient receives an email with all the necessary activation details, and the purchaser can even specify the exact date for the email delivery. This eliminates the risk of physical card manipulation and streamlines the gifting process, making it a convenient and secure option for holiday shoppers.
If, despite all precautions, you suspect you have been a victim of a gift card scam, immediate action is crucial. The first step is to report the scam directly to the gift card company without delay, regardless of how much time has passed since the incident. Many companies, recognizing the prevalence of these scams, may be able to assist in recovering funds or freezing compromised cards.
For Apple or iTunes gift cards specifically, consumers should call 1 (800) 275-2273 and say “gift card” to connect with a live representative. Inquire whether the money is still on the card; if so, Apple may be able to freeze the funds and potentially facilitate a refund. Always keep a copy of your gift card and your store receipt, as these documents are vital for any claim or investigation.
Beyond contacting the gift card issuer, it is essential to report the scam to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. Every report contributes to a broader understanding of scam trends and aids in consumer protection efforts. The FTC also serves as a crucial resource, offering comprehensive information on identifying and avoiding various types of fraud.
In an era where digital transactions and gift cards have become ubiquitous, consumer vigilance is more paramount than ever. The lessons learned from the unsettling experience with $100 Apple gift cards at Target, and the wider landscape of gift card scams, underscore the importance of informed decision-making. By understanding the tactics of fraudsters, recognizing warning signs, and knowing the proper steps to take, consumers can empower themselves, protecting their hard-earned money and preserving the spirit of giving from malicious intent. Stay informed, stay cautious, and protect your purchases.
