When you hear the term ‘gift card scam’ you may think of vulnerable people being tricked into buying gift cards to pay off fake debts. In recent years, however, there has been a rise in sophisticated gift card tampering scams, often so cunning and well-executed that anyone could fall victim to them.
This article explains how these scams work, the steps you can take to identify tampered gift cards and what your options are if you have already purchased one.
Gift cards at risk of tampering
Almost any physical gift card could theoretically be tampered with but 99% of the cases we see in Australia concern only a handful of products.
The highest risk gift cards are:
- Apple gift cards
- InComm Payments prepaid Visa and Mastercard gift cards (Vanilla Visa, Vanilla Mastercard and Coles Mastercard)
Lower risk gift cards include:
- TCN (The Card Network) multi-retailer and merchant category gift cards
- Ultimate (One4All) gift cards
- TCN Eftpos gift cards
- Activ Visa gift cards
- Perfect Eftpos gift cards
Apple gift cards
Physical Apple gift cards sold in stores such as Woolworths and Coles are a major target for tampering. Whenever these supermarkets run one of their frequent promotions on Apple gift cards there are always numerous reports of people buying tampered cards.
The way this scam works is that criminals steal unactivated Apple gift cards from stores, carefully remove or damage the redemption codes inside, reseal them and then place them back on the shelves for unsuspecting customers to purchase.
When you purchase one of these tampered Apple gift cards, you are paying to activate a code that only the criminal has access to. The code inside your card – if there even is one – won’t work as it has either been damaged or belongs to an entirely different Apple gift card.
Version 2 Apple gift cards
Almost all physical Apple gift cards you’ll find nowadays are the version 2 variety. As you can see from the image above, these are distinguished by their crimped edges and vertical tear-to-reveal barcode on the back.
When you tear open the gift card, you’ll find a credit card sized piece of cardboard containing a redemption code on one side and an activation barcode on the other.
Whilst it may seem unusual, you should rip open this version of Apple gift card before you purchase it so that you can inspect the redemption code. Look for missing or scratched off characters (it may be as subtle as changing an L to look like an I).
Scammers sometimes also scratch off the serial number on the back of the inner card so that it’s harder to freeze the gift card’s funds before they can be spent.
If you’re satisfied that the redemption code is legible and undamaged, you can purchase the gift card by scanning the barcode on the other side. If staff question your decision to open it first, calmly explain why you were checking it and refer them to the image above if it helps.
The one major downside of this precaution is that it requires you to tear apart the gift card packaging so if it’s intended as a present you may just have to give them the smaller inner card instead. Still, it’s better to be safe than sorry.
Version 1 Apple gift cards
These older Apple gift cards may still be found in some stores despite being superseded by the version 2 variety in early 2025. Inside version 1 Apple gift cards you will find a sheet containing the redemption code and Apple logo sticker whilst the activation barcode is located on the outside of the gift card packet.
When you open a tampered version 1 Apple gift card you may notice:
- The serial number on the inside does not match the one on the outside
- The redemption code has been removed or damaged (this could be as subtle as changing one character to look like another)
- It’s difficult to open because of the glue used to reseal the packaging
- The denomination on the inner sheet is different to the one printed on the outside (e.g. one says $20 and the other says $100)
It is often impossible to notice any of these signs without actually opening the gift card. For that reason, it’s recommended that you unseal version 1 Apple gift cards before you pay for them so that you can at least confirm that the two serial numbers match and that the redemption code is undamaged.
Unlike the version 2 Apple gift cards which must be torn apart to be opened, the version 1 Apple gift card can be discreetly inspected prior to purchase with everything bar the seal at the bottom remaining intact.
Prepaid Visa, Mastercard and Eftpos gift cards
Physical prepaid Visa, Mastercard and Eftpos gift cards are another major target for tampering because they can easily be spent at almost any merchant.
The highest risk products in this category are Vanilla Visa, Vanilla Mastercard and Coles Mastercard gift cards (all produced by InComm Payments) as they are sold at Australia’s two largest supermarkets, Coles and Woolworths.
Whilst TCN Eftpos gift cards are also stocked at Coles and Woolworths, we don’t see as many cases of tampering with them. Scammers likely prefer Visa and Mastercard gift cards since they can be spent online whereas Eftpos gift cards are limited to in-store purchases.
Activ Visa and Perfect Eftpos gift cards (produced by Blackhawk Network) don’t appear to be a priority for scammers now that they’re no longer sold at Coles and Woolworths but it’s still a good idea to check them for signs of tampering before you buy.
Visa and Mastercard gift cards
With these gift cards, common signs of tampering include:
- Missing card numbers on the front – there should be sixteen
- Missing security code (CVV) on the back
This scam works similarly to the Apple one mentioned earlier. Criminals steal unactivated Visa and Mastercard gift cards from stores, record the card details, remove some of this information and then place them back in stores for people to purchase and activate.
When you purchase one of these tampered gift cards, you are unable to use it online as you don’t have access to all sixteen digits or the security code (CVV). You also won’t be able to use the card by swiping it in-person if the scammers have reset the magnetic stripe.
To protect yourself from this scam, open up the packaging for each Visa or Mastercard gift card after you’ve scanned it at the checkout so that you can inspect the physical card for removed or scratched off details.
The reason you should open the gift cards after scanning them and not before is that the activation barcodes on some prepaid cards are no longer readable after opening. However, once you’ve scanned them at the checkout you still have an opportunity to open them up before paying.
If you’re purchasing multiple Visa or Mastercard gift cards, it’s recommended that you pay for them separately so that it’s easier to void the transactions for the ones that display evidence of tampering.
Whilst Activ Visa gift cards include both a CVV and PIN, Vanilla Visa, Vanilla Mastercard and Coles Mastercard gift cards only include a CVV (security code) so don’t worry if you have one of those gift cards and it doesn’t display a PIN.
Also, some Vanilla Visa, Vanilla Mastercard or Coles Mastercard gift cards have their barcodes partially printed on stickers but that’s just how they are manufactured. There is a fake barcode sticker scam affecting other gift cards but that one only uses full length barcodes.
Eftpos gift cards
Physical prepaid Eftpos gift cards likely aren’t as much of a target for scammers because they can only be used in-person by swiping the cards. That being said, we have seen several instances of tampered TCN Eftpos and Perfect Eftpos gift cards so they aren’t entirely safe either.
Scammers sometimes take photocopies of the activation barcodes for Eftpos gift cards and stick them on top of the barcodes for cards sold in stores. When you buy one of these tampered Eftpos gift cards by scanning the fake barcode, you’re actually activating the one in the scammer’s possession.
This type of scam is possible because many Eftpos gift cards are still sold in open packaging where the physical card is simply stuck to the front of a piece of cardboard. Thankfully, both TCN Eftpos and Perfect Eftpos gift cards are transitioning to more tamper-resistant packaging which should make this scam harder to pull off.
Regardless of whether they are in sealed or open packaging, you should open Eftpos gift cards before paying so that you can look for any fake barcodes as well as other common signs such as removed or revealed PINs.
TCN multi-retailer and merchant category gift cards
In 2025 we saw a sudden increase in scams targeting TCN (The Card Network) multi-retailer and merchant category gift cards (e.g. TCN Her, Him, Teen, Kids, Restaurant, Pamper etc).
As of 2026, these scams are now much rarer than they used to be. However, even though they’re lower risk than Apple, Visa and Mastercard gift cards, it’s still sensible to check TCN gift cards for signs of tampering before you pay.
The way this scam works is that criminals record the details of physical TCN multi-retailer and merchant category gift cards sold in stores such as Coles and Woolworths. When someone buys the gift card, the scammer is then able to remotely spend it or swap it for another gift card via the TCN website.
The scammers often leave behind physical signs of tampering which you can identify by opening up the gift cards before you pay for them:
- Missing or defaced card numbers – there should be nineteen digits beginning with 5021
- Revealed or removed PINs – scratch it yourself to confirm all four digits are present
- Fake barcode sticker covering the real one that’s printed directly onto the gift card
In August 2025, YouTuber Simon Dean uncovered poor security practices on the TCN website that made it possible for scammers to ascertain each card’s PIN using only the numbers that are openly displayed on physical TCN gift cards but this vulnerability has long since been fixed.
The TCN gift cards most at risk of this scam appear to be high value denominations that can be used at JB Hi-Fi and The Good Guys. Lower value denominations and TCN gift cards that don’t support those two retailers don’t seem to be a high priority for scammers.
It’s worth mentioning that it’s normal for newly bought TCN gift cards to display an error when you attempt to swap or convert them as you usually have to register them first. If you still encounter issues then you may have purchased a tampered or defective card.
Ultimate gift cards
Ultimate (One4All) gift cards (e.g. Ultimate Him, Ultimate Her, Ultimate Everyone etc) have never been a significant target of tampering but we have seen a handful of cases here and there. For that reason, it can still be worth checking them for signs of tampering before you pay.
Tampering of Ultimate gift cards works similarly to the others mentioned above. Scammers record and then remove the gift card details so that only they can spend them.
To avoid buying tampered Ultimate gift cards, open them up before you pay to check that all sixteen digits of the card number are present. The card number is on the front for newer Ultimate gift cards and on the back for older versions.
You should also verify that the PIN and CVV (security code) on the back of the card have not been revealed or scratched off. If everything looks as it should you can go ahead and pay for the gift card.
What to do if you buy a tampered gift card
If you do purchase a gift card that has been tampered with, you are entitled to a refund or replacement. How you go about obtaining it depends on where you bought the tampered gift card.
For Woolworths and Big W purchases you should contact Everyday Gifting (formerly known as Woolworths Gift Cards). They can be reached by email, live chat or you can call them on 1300 10 1234.
For tampered gift cards purchased at Coles, you should speak to Coles customer care. You can call them on 1800 061 562, submit an enquiry on their website or message them through their Facebook page.
If you purchased a tampered gift card from another store (e.g. ALDI, Kmart, Target etc) then you should contact their customer support.
It can sometimes possible to obtain a refund directly from the physical store you purchased a tampered gift card from but you are usually better off going through their official support channels rather than pestering in-store staff who are likely powerless to solve the issue.
With the possible exception of Apple who are reportedly quite good at solving issues with tampered Apple gift cards, some of the other major gift card companies are known to be slow and unhelpful so you may only want to seek a refund from them as a last resort.
Whether you obtain a refund from the store or gift card company, it’s a good idea to contact both so that the store can be made aware of the fact that they’re selling tampered gift cards and the gift card company can be given a chance to suspend the card before the scammer uses it.
Always hang onto your receipt and activation slip (the smaller receipt that sometimes accompanies a gift card purchase) as these may be needed when submitting your claim for a refund. Other evidence of your purchase may also suffice (e.g. bank statement, rewards account activity etc).
Other gift card scams
These are the most common gift card scams we’ve observed in Australia but it’s entirely possible that scammers will branch out to other gift cards or invent new ways of tampering. If you spot any new gift card scams, let us know so that we can keep this article up to date.
If you’re a buyer or recipient of prepaid Visa and Mastercard gift cards, you might also want to know about BIN attacks. This is where criminals brute force different card number, expiry and security code combinations until they find ones that work.
Almost all prepaid Visa and Mastercard gift cards are susceptible to BIN attacks. Whilst the chances of it happening to you are low, we still recommend using Visa and Mastercard gift cards sooner rather than later as the longer you leave them, the higher the chance of a successful attack. You should also avoid giving them as gifts.
If you have a prepaid Visa or Mastercard and notice that it has been used to make transactions you didn’t authorise, report it immediately to the gift card company. They can issue you a replacement gift card but it’s often a lengthy process that requires a lot of back and forth.
Possible solutions
Changes to the way gift cards are produced and sold could help to eliminate tampering scams.
Whilst gift card companies are continuing to introduce new tamper-resistant packaging, scammers always seem to find a way in. Ironically, the more tamper-resistant they make gift cards, the harder it is for consumers to check them before purchasing.
Stores that sell physical gift cards targeted by scammers could choose to sell them from behind the counter instead of on public display. This is a strategy we’ve already seen employed by some Woolworths locations with Apple gift cards but it could be expanded to include other stores and gift cards as well.
Gift card companies could also change how their gift cards work. When you buy a True Rewards Visa gift card, for example, your receipt contains a code that you use to add the card to your mobile wallet. The “gift card” on the shelf in the store contains no sensitive information.
These possible solutions aren’t perfect but they do highlight some of the changes that gift card companies and sellers could make to stop their customers from falling victim to tampering scams.
Conclusion
The chances of you buying a tampered gift card remain relatively low but you should still know what signs to look for, if only to save yourself the potential headache of having to obtain a refund.
If you are buying any of the gift cards mentioned in this article, you should consider opening them before you purchase to check for signs of tampering. This is particularly recommended if you are purchasing Apple, Visa or Mastercard gift cards as they are the highest risk products.
A gift card that has been opened by you can still be gifted to someone so there’s no reason not to err on the side of caution and check. After all, the recipient would likely be much more disappointed by an unusable gift card than an opened one.
Using the resources in this article
All of the information and graphics in this article may be used without charge for the purpose of spreading awareness about gift card tampering scams provided you attribute it to the following URL: gcdb.com.au/scams.
Featured image credit: GCDB, Apple, InComm Payments, The Card Network
Originally published Nov 2024, last updated 3 Nov 2026
22 Responses
For Apple Gift Card version 2, does that mean I should scratch the code first before paying?
*in order to look for missing or scratched off character?
Yes. I would not recommend buying a physical Apple gift card in Australia without first checking that the redemption code is all there.
YES, DO IT IN FRONT OF THEM
This happened to me. I purchased an EFPTOS Gift Card for my wife in early 2025. She didn’t attempt to redeem it until very late in the year only to realise it was fully used only a few days after it was purchased. Interestingly when she scratched the PIN, she couldn’t find the number which she thought was because it was scratched too hard. We had to call TCN and they provided us with the PIN. As it turns out it is likely that the thief deliberately scratched out the PIN and put a fake seal back on it to look like it hadn’t been tampered with. We have reported the issue to the place we purchased the gift card and also to TCN and are awaiting a resolution. The worst part about this scam is that people won’t realise it until many months or years later when they try to use the gift card. And in many cases, it was gifted to them so they are unlikely to have the transaction details of the original purchase and are very unlikely to report it.
Happened to me as well. I purchased prepaid $400 efpost card from Coles supermarket and was going to use it a month later to pay Council rates. Only to find out the card has “0” balance on it. Apparently the balance was loaded on a card and used immediately interstate. The card appeared to be intact when purchased with no signs of tampering. Now dealing with Coles Customer service and hopefully will get a refund.
Coles customer support won’t give an F about refunds go to the brand or the card and see if you can check balence and find the transaction and see if there is a dispute button click that most of them they say no but there’s always a chance they might say yes.
I buy a lot of the prepaid Visa gift cards. I just found 3 with these problems. All the packaging was totally complete. I am confused as to how they tamper with them and yet keep the package sealed. Can someone enlighten me ? TYIA
The packaging is mainly just paper and glue so often all it takes is a hair dryer, a razor blade and a bit of practice.
I bought 5 x $100 Apple gift cards at Coles early last year. I redeemed one of them and left the others in the drawer only to discover the other 4 were tampered with when I opened them last night. They were the older type 1. Parts of redemption code were scratched off and unreadable, and yes the barcodes didn’t match. It’s probably too late to anything now because I got them a year ago.
You should still seek a refund. You might have to sign a statutory declaration or something given how long it’s been but for $400 I think it’s worth it.
I purchased a variable load Apple gift card today from coles and instead of a scratch panel covering the numbers, it was a ‘tear’ system where you start pulling on a grey tab which then removes all of the silver covering the card numbers.
This is a much easier system than having to scratch off the silver part to reveal the gift card numbers.
Thanks. I did recently see a photo of the new scratch panel. I plan to buy one next week to test myself and then I’ll update the article accordingly.
If you can’t trust physical gift cards at a big box store because they get tampered just use egift cards my favourite egift stores are card.gift and prezzee.
My brother was phoned by someone pretending to be from the Fraud Squad and got him to purchase nearly $15,000 worth of gift cards and give them the numbers. Is there any way of finding out who these people and getting his money back
You mean Greek squad them guys keep on getting impersonated why can’t they just rebrand themselves the brand name is already toxic by scammers.
This happened to me yesterday. I received phone call, the scammer pretended to be my new colleague. I did not recognize him, I paid AUD10500 cash for the Gift cards, AUD4500 for debit card transaction. I think I could only get AUD 4500 back via bank dispute.
Also why does the mastercard prepaid gift cards have a barcode on the front bottom left corner is there any reasons why because you scan the back barcode which the internal activation key barcode.
I just bought 5 x $100 EFTPOS Gift cards at Woolworth this morning and all the pins have been removed eventhough the packaging were intact, even with the added additional peel off for barcode. I came home and opened them up and immediately went back to Woolworth store I bought the cards within an hour and they said they can’t do anything and asked me to contact card issuer. Is this correct or I am been handball by Woolworth staff?
In-store staff won’t be able to do anything. You need to email the Woolworths Gift Cards team.
It may also be a good idea to contact The Card Network (the gift card company) as they may be able to replace the gift cards before they’re used.
Thanks. I have contacted both. Just curious since this is for EFTpos only, how can the scammer gain from this without the physical card after activation?
You can clone gift cards with magnetic stripes.