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Australians are being warned to inspect gift cards carefully before buying them, following the discovery of tampered Apple cards on supermarket shelves around the country.
Unlike many other scams, this fraud does not begin with a suspicious phone call or message. The customer purchases the card from a legitimate retailer, unaware that criminals may already have stolen the information needed to access its value.
The technique is known as “card draining”. Criminals remove inactive gift cards from store displays, carefully open the packaging and record the card numbers and redemption codes
They then reseal the packages and return the cards to the shelves. Because the cards have not yet been purchased, there is initially no money to steal.
Once an unsuspecting shopper buys a card, it becomes active. Criminal networks can monitor the recorded details and quickly spend the balance, sometimes before the purchaser or gift recipient has tried to use it.
As gift cards are often put aside for birthdays or Christmas, the theft may not be discovered for weeks or months.
A recent ABC News investigation documented reports of suspicious gift cards purchased at major supermarkets in several states.
Some customers opened their cards to find scratched-off numbers or missing redemption codes, while at least one card had already been redeemed. Reported losses included cards worth hundreds or even thousands of dollars.
The scam has resulted in at least one conviction, with court documents showing that Coles and NSW Police monitored a man accused of tampering with cards at several Sydney supermarkets.
When police searched his home and car in May 2025, they found dozens of Apple and iTunes cards. He was convicted in July 2025 after allegedly handling 61 cards worth more than $10,000.
How to protect yourself
Before buying a physical gift card, examine the packaging closely. Look for tears, bent edges, unusual glue, cuts, scratches, or signs that a seal has been lifted and reapplied.
Apple’s newer packaging includes perforated edges that should reveal signs of opening. Never buy a card if the package appears damaged, even slightly.
Where possible, choose cards stored behind a service counter, rather than those on an open display. Keep the card, packaging, and purchase receipt.
If the card is a present, encourage the recipient to open and redeem it promptly.
A digital gift card purchased through an official website may also reduce the risks associated with physical tampering.
If a card has missing details, a zero balance or has already been used, contact the retailer and card issuer immediately. Provide photographs, the receipt, activation information, and any packaging.
Report suspected fraud to Scamwatch and, if money has been stolen, contact your financial institution and police. Acting quickly may improve the chance of limiting the damage, although recovery is not guaranteed.
Gift cards feature in other scams too. Anyone claiming to be from the government, police, a bank, or a technology company who demands payment with gift cards is a scammer.
Also be wary of fake gift card giveaways, surveys, and social media promotions designed to steal personal or banking information.
National Seniors Australia’s Keep Scam SAFE resources provide information about shopping, phishing, investment, impersonation, and remote-access scams, along with cyber-safety videos, banking resources and a downloadable scam-protection guide.
The central advice is simple: Stop, Check, and Reject anything that does not seem right. Visit our Scam Awareness resources here to learn more.
*The discount applies to the total National Seniors travel insurance premium and is for National Seniors Australia members only. Discounts do not apply to the rate of GST and stamp duty or any changes you make to the policy. AGA has the discretion to withdraw or amend this discount offer at any time. This discount cannot be used in conjunction with any other promotional offer or discount.
For Travel Insurance policies purchased before 8 September 2026
National Seniors Australia Ltd ABN 89 050 523 003, AR 282736 is an authorised representative of nib Travel Services (Australia) Pty Ltd (nib), ABN 81 115 932 173, AFSL 308461 and act as nib's agent and not as your agent. This is general advice only. Before you buy, you should consider your needs, the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and Target Market Determination (TMD) available from us. This insurance is underwritten by Pacific International Insurance Pty Ltd, ABN 83 169 311 193.
For Travel Insurance policies purchased on or after 8 September 2026
National Seniors Australia Ltd ABN 89 050 523 003, AR 282736, is an authorised representative of AWP Australia Pty Ltd, ABN 52 097 227 177, AFSL 245631, trading as Allianz Global Assistance (AGA), and acts as AGA's agent and not as your agent. nib Travel Services (Australia) Pty Ltd (nib), ABN 81 115 932 173, AFSL 308461 acts as third party administrator on behalf of AGA, managing claims, complaints, enquiries and sales. This is general advice only. Before you buy, you should consider whether the product is appropriate for you, the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and Target Market Determination (TMD) is available from us. This insurance is underwritten by Pacific International Insurance Pty Ltd, ABN 83 169 311 193, AFSL 523921.















