Consumer Alert Issued for D.C. Residents Over Gift Card Scams

December 15, 2025

Washington D.C.'s Attorney General Brian Schwalb has issued a warning to residents about sophisticated gift card fraud schemes targeting holiday shoppers. These "draining" scams allow criminals to steal funds from gift cards without ever making contact with victims or obtaining their personal information. Thieves employ various methods, including recording card information before purchase, replacing barcodes with activated ones, or scanning card numbers while they remain on store displays.

Who is affected

District of Columbia residents, particularly holiday shoppers
Consumers who purchase gift cards as presents
Retailers selling gift cards
Victims who have already been defrauded through gift card draining schemes

What action is being taken

Attorney General Brian Schwalb is issuing consumer alerts warning residents about gift card scams
The Office of the Attorney General and Department of Insurance, Securities and Banking are accepting reports of suspected fraud
Consumer protection officials are providing recommendations for safer gift card purchasing practices

Why it matters

This represents a significant evolution in fraud tactics because scammers can steal money without any direct contact with victims or obtaining personal information. The schemes allow criminals to drain funds within minutes of card activation, making traditional gift-giving practices potentially risky. The sophistication of these scams, which can compromise even cards that appear untouched, threatens consumer confidence during the holiday shopping season and can result in significant financial losses for unsuspecting gift-givers.

What's next

Victims should immediately retain their cards and purchase receipts
Affected individuals should report incidents to the Department of Insurance, Securities and Banking at 202-727-8000
Victims should also contact the Office of the Attorney General's Consumer Protection Office at 202-442-9828 or through oag.dc.gov

Read full article from source: The Washington Informer