“They could be selling cards that are compromised right now, and they won’t know until someone has lost their money”
11:58, 15 Feb 2026Updated 11:58, 15 Feb 2026
Flo Atkins spent £50 on a gift card, not knowing its code had been swiped by fraudsters(Image: Colin Lane)
An unlucky shopper whose mum lost £50 on a “fake” gift card says “there’s no way of knowing” which cards are valid – and which have been appropriated by “little thieves”. Stephen Atkins received the £50 John Lewis gift card as a Christmas present from his 80-year-old mum Flo, who bought it in Asda.
But when he tried to use the card to purchase a new record player at John Lewis in Liverpool ONE on Wednesday, February 12, he was told the card had already been used.
Stephen, 55, from Crosby, said: “It said there was no money on the card. My mum kept the receipt, so we went to Asda with it and the gift card. They took it away and checked it and said, on their side, the money had been put on the voucher.
“So I rang John Lewis and they said they could see the card had been compromised. By that they mean the card had been spent by someone else online, and the item sent to someone else’s house.
“They surmised that, while the card was on the shelves in Asda, somebody has removed the sticker, taken a picture of the code, put the gift card back on the shelf. When my mum has put £50 on the card, they have been able to go and spend it online before us.”
This is a form of fraud known as a gift card scam, in which fraudsters target vouchers on the shelves of supermarkets, stealing the codes which are usually concealed under stickers on the back. When unsuspecting shoppers buy the vouchers at the till, activating them, their codes can then be used by the frauds to make purchases online.
Stephen reported what happened to both Asda and John Lewis, but neither had offered his mum a refund. He said they had been instructed by Asda to contact John Lewis, who told him to contact the bank.
He said: “Asda are basically selling gift cards on their shelves now that could well have been compromised. There’s no way of them knowing that little thieves haven’t gone in and taken pictures of the codes.
“A woman at Asda said they’d had a memo warning about fraud on gift cards. But I said they’re still out on the shelves. If they’ve been told there’s been fraud, why are they still on the shelves? They should be behind the counter so people cannot get at them.
“From my point of view, Asda sold us a damaged product.
“But Asda says it’s nothing to do with them. John Lewis says it’s nothing to do with them. So where does that leave us, the consumer?
“They could be selling cards that are compromised right now, and they won’t know until someone has lost their money. Any poor person could go in there and buy a gift voucher that’s already been compromised. It’s very easily done. They just had to wait for my mum to the put the money on the card, and that card became active.
“Asda will still have their commission for selling the voucher, and John Lewis have still got my mum’s £50, so they’re not bothered. They just say go to the bank, and report it to Action Fraud – but we all know the police won’t do anything for £50.”
An Asda spokesperson said: “If a gift card has already been redeemed and the customer does not recognise the transaction, we recommend contacting the gift card provider to investigate, as only they can see when and how the card was redeemed, so it can then be reported to Report Fraud UK.
“Where necessary, we will work with the authorities and gift card provider and have fraud-prevention measures in place, including value limits and clear in-store guidance encouraging customers to check gift cards and be cautious if asked to purchase them on someone else’s behalf.”
Flo and Stephen Atkins have warned other shoppers to watch out for gift card fraud(Image: Colin Lane)
A John Lewis spokesperson said: “We’re sorry to hear about Mrs. Atkins’ experience. We sell thousands of gift cards each year, and cases like this are rare, especially as we regularly review our security measures and are taking action to stay one step ahead of fraudsters.
“We advise customers to contact Report Fraud, who specialise in possible fraudulent cases, and will of course assist with any information they may need.”
What is a gift card scam?
Report Fraud, the national body for reporting incidents of fraud, says gift card scams have increased by about 25% over the past two years. Figures from the organisation show they had 9,386 reports of gift card fraud in 2023-24, with more than £18.5m lost.
While this particular type of gift card fraud is fairly new in the UK, it is estimated that $217m was lost to this type of scam in America during 2024, according to consumer rights expert Martyn James, of Rip Off Britain fame.
On his website, he explained: “This scam is known as ‘gift card draining’ It’s been endemic in the USA for some time now, with $217 million stolen in the last year, largely using this method.
“Gift cards are usually displayed on racks in prominent places in supermarkets and shops. Though they often have different designs, most include a long number that identifies the specific card and a code hidden behind a sliver, ‘scratchable’ or ‘peelable’ cover. On occasion, the card might be enclosed in cardboard.
“Without going in to the finer details, it’s possible to obtain the identification codes for multiple cards and record them while they are on the racks. Then all the fraudster needs to do is wait for a few weeks for someone to buy the cards and load them up with money – at which point they spend the credit before the recipient notices.”
He added: “The Consumer Rights Act – the law from which we get most of our shopping rights – states that when we buy goods or services, they must be of satisfactory quality, fit for purpose, as described and last for a reasonable length of time. The compromised cards are clearly not of satisfactory quality (they’ve been tampered with) and are not fit for purpose (the fraudster is able to steal the money from them as a result of the security breach). So you should be able to get a refund.
“You’ll need to obtain an overview of the money that was spent on the card and where it took place, then sign a disclosure confirming that you did not spend the money. The people who bought the card will need to pursue the complaint on your behalf.”
Anyone affected by a suspected gift card scam can report their concerns to police online at https://www.reportfraud.police.uk.
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