A CBS reporter found out, first hand, about a new type of gift card scam. Ginger Allen sent her father a gift card to Outback Steakhouse. But when he tried to use it the card had a zero balance. A scammer had already stolen the card number and pin.
Here is how the scam works: scammers take a picture or jot down the card number and pin on the back of gift cards in the store. After that, they take the information and install it into sophisticated software that can let them know once money is loaded onto the card. Card numbers and pins are often "keyed in" when a customer has forgotten their gift card and the scammers pretend they've left their card home and give the card number and pin instead.
Gift cards with that information covered are usually safer, but many companies still use the unsecured versions of the gift cards. Outback released a statement saying in part quote "We changed the way we produce gift cards last year to cover the pin number. However, older cards may still be found on shelves. Of course, if this happens we fully reimburse our customers."