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flag Fraudsters are draining balances from newly purchased holiday gift cards before use, prompting warnings to check cards immediately.

flag Many Americans are reporting that holiday gift cards, including a $50 Visa card received by Julia Hodges, have no remaining balance despite being newly purchased or received. flag This growing issue, known as "gift card draining," involves fraudsters exploiting vulnerabilities in gift card systems to drain balances before cards are activated or used. flag Experts say cards can be compromised during shipping, through hacking, or via stolen card data, particularly if bought from third parties or online. flag Consumers are urged to check balances immediately, keep receipts, and report issues to issuers or the FTC. flag Retailers and financial institutions are reviewing security measures amid rising concerns.

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