When “The Perfect Gift” Isn’t: Why Many Canadians Quietly Skipped Gift Cards This Christmas

When “The Perfect Gift” Isn’t: Why Many Canadians Quietly Skipped Gift Cards This Christmas

This year, something subtle happened in my family: no gift cards.

No big discussion. No warning story exchanged over dinner. Just an unspoken shift — and in hindsight, a sensible one.

Across Canada, gift card scams have been quietly spreading, particularly involving major retailers like Shoppers Drug Mart and third-party gift card processors such as Blackhawk Network. Even people who didn’t personally lose money seem to be adjusting their habits — opting out before becoming the next cautionary tale.

How the gift card scam works (in plain language)

There isn’t just one scam — there are several variations:

• Barcode tampering Scammers place fake barcode stickers over legitimate gift cards in stores. When the card is scanned at checkout, the money is loaded onto a different card controlled by the scammer — not the one you purchased.

• Pre-drained cards Some cards are compromised before purchase. By the time the recipient tries to use them, the balance is already gone.

• The accountability gap When fraud happens, consumers are often bounced between the retailer and the third-party processor. One says “call the issuer,” the other says “the funds were already redeemed.” The result? The customer absorbs the loss.

Why this matters — even if you didn’t buy one

I didn’t buy gift cards this year either. Even my Visa Rewards points, which can be redeemed for gift cards, were put straight back as a credit on my card instead. That choice wasn’t about paranoia — it was about control.

A credit applied to your account:

• Can’t be intercepted
• Can’t be drained remotely
• Has a clear paper trail
• Keeps responsibility with the bank, not a third-party processor

Gift cards, on the other hand, exist in a strange consumer-protection grey zone.

A system built on “buyer beware”

Gift cards are marketed as:

“Just like cash — but easier!”

In reality, they’re often worse than cash:

• No fraud guarantees
• No chargeback rights
• Limited refunds
• Complicated dispute processes

And yet, billions of dollars flow through this system every year — especially during the holidays.

A quiet consumer shift

What’s most telling isn’t just the scams themselves, but how people are responding:

• Families choosing cash, transfers, or experiences
• Shoppers hesitating at gift card racks
• Rewards points being redeemed as credits instead of cards

This isn’t panic. It’s adaptation.

If you do use gift cards

If gift cards are unavoidable:

• Inspect cards carefully for tampering
• Keep receipts and activation slips
• Use them immediately
• Consider digital gift cards from the issuer directly

And if something goes wrong, report it — not just to the retailer, but to the Canadian Anti-Fraud Centre. Silence is what allows these systems to continue unchanged.

Final thought

The most telling part of this story isn’t the scam — it’s that many people are quietly opting out.

Sometimes the safest gift is the simplest one.