When Simon Dean bought two $500 gift cards at Woolworths to earn reward points, he had no idea he'd uncover a security vulnerability that could affect thousands of Australian shoppers. Within hours, one of his cards had been drained by a stranger—despite the PIN being completely intact.
What happened next should concern every Australian who buys or receives gift cards.
The shocking reality of gift card fraud in Australia
Simon's experience isn't unique. An estimated 9.9 per cent of Australians (2.1 million people) experienced card fraud in 2023-24, up from 8.7 per cent the previous year, according to the Australian Bureau of Statistics.
Collectively, Australians lost $2.1 billion through credit card fraud between July 2023 and June 2024, with a net loss of $477 million even after reimbursements.
The YouTuber's story highlights a particularly troubling trend: gift card fraud is now the most common form of fraud globally, with 26.6 per cent of victims indicating money was taken using gift cards or reload cards.
Dean discovered the security flaw after purchasing two TEEN gift cards from The Card Network, each worth $500. When he tried to redeem the second card online, he received an error message—it had already been used by someone else within hours of his purchase.
'I was really confused because the PIN code on the back of the card was still intact. It was covered with a scratch-off thing,' Dean told SBS News.
'This was so basic and so simple, it was quite astonishing, really. I'm not a sophisticated hacker'
How a simple test revealed the security gap
Determined to understand what went wrong, Dean bought another TEEN gift card—this time worth just $20—to test whether he could crack the security himself. In under 15 minutes, he successfully identified the concealed PIN using only the visible details on the card.
While SBS News has chosen not to explain the exact method for security reasons, Dean described the process as 'astonishingly simple' for someone without sophisticated hacking skills.
The implications are serious: criminals could potentially access gift card funds without physically tampering with the scratch-off security features that consumers rely on to know their cards are safe.
Your rights as an Australian consumer
Gift card protection under Australian law
Since November 1, 2019, all gift cards sold in Australia must be valid for at least three years
Expiry dates must be displayed prominently
No post-supply fees that reduce card value are allowed
Companies face penalties up to $30,000 for corporations and $6,000 for individuals
ACCC can impose infringement notices up to $11,500 for corporations
If you're affected by gift card fraud, you have legal protections. Dean eventually received a full $500 refund from The Card Network, though it took six weeks and required a statutory declaration and police report.
Research shows 72 per cent of card fraud victims are fully reimbursed by their card issuers, but the process can be lengthy and stressful.
The growing threat landscape
Dean's discovery comes as fraud becomes increasingly sophisticated. The growing trend of overseas card-not-present fraud coincides with the emergence of scam compounds throughout Southeast Asia, with many pivoting to e-commerce and credit card fraud to obtain card details.
Alarmingly, 34 per cent of US adults have been targeted by scams seeking payment by gift cards, and only 25 per cent of consumers purchasing a gift card to pay a scammer were warned by store clerks that their purchase could be part of a scam.
Essential safety steps for gift card shoppers
Your gift card security checklist
- Buy only from reputable retailers and avoid third-party sellers
- Check that scratch-off sections are completely intact with no signs of tampering
- Verify expiry dates are clearly displayed (must be minimum 3 years from purchase)
- Keep receipts and take photos of your cards before using
- Register cards immediately if the option is available
- Use cards quickly rather than storing them long-term
- Report suspicious activity to your bank and the ACCC immediately
The vulnerability Dean discovered underscores why experts recommend treating gift cards like cash—they're valuable and can be difficult to recover if stolen or fraudulently accessed.
Angus Kidman from Finder told SBS News that companies need to move beyond 'simplistic' four-digit PIN systems: 'For most businesses, having something that is more sophisticated is going to make more sense.
While it may be more expensive to invest in that tech, if you do suffer from a breach, those expenses are going to be even higher.'
What companies must do better
The Card Network confirmed it investigated Dean's case and 'resolved both his case and the concerns he raised after fully investigating the issue.'
However, the company wouldn't comment on specific security measures, stating they don't publicise how they deploy protections to prevent criminals from understanding and abusing them.
Did you know?
Did you know?
Australian businesses face unprecedented fraud challenges, with total card fraud on Australian-issued cards increasing 20 per cent to $913 million in 2024. The rise is largely driven by overseas card-not-present fraud, highlighting the global nature of payment security threats.
The recent Scams Prevention Framework Bill 2025, which passed both houses of Parliament in February, will require social media companies, banks, and telecommunication providers to take 'reasonable steps' to prevent, detect, report, respond and disrupt scams.
The cost of unused gift cards
Dean's case also highlights another issue affecting Australian consumers. Research from Finder estimated Australians have $1.4 billion in unused gift cards sitting in wallets or inboxes, representing a significant amount of dormant money.
Americans use their gift cards less than in the past, with a 30.5 per cent increase in average unused gift card value between 2023 and 2024, with 20 per cent of people having at least one gift certificate expire before redeeming.
Protecting yourself and your family
For many Australians over 60, gift cards represent a convenient way to give presents or manage spending. However, Dean's experience shows the importance of staying vigilant.
If you suspect gift card fraud:
- Contact the card issuer immediately
- File a report with your local police
- Report the incident to the ACCC via their website
- Keep all documentation including receipts and photos of the card
You can report money lost in scams to ReportCyber, the Australian online police reporting portal, and report scam texts or emails to Scamwatch to assist with education and awareness activities.
What This Means For You
The vulnerability Dean discovered serves as a crucial reminder that even sophisticated security measures can have flaws. While companies work to improve their systems, consumers must remain cautious and informed about their rights.
Dean hopes his experience leads to better security: 'Hopefully they fix their systems and hopefully people won't have to go through what I went through in order to get their money back.'
Have you experienced issues with gift cards, or do you have questions about protecting yourself from fraud? Share your experiences in the comments below—your story could help other members of our community stay safe.
Original Article
https://www.sbs.com.au/news/article...nto-popular-gift-card-in-15-minutes/ugdun6bab
Personal Fraud, 2023-24 financial year | Australian Bureau of Statistics
Cited text: In 2023-24, an estimated 9.9 per cent of persons (2.1 million) experienced card fraud.
Excerpt: Simon's experience isn't unique. An estimated 9.9 per cent of Australians (2.1 million people) experienced card fraud in 2023-24, up from 8.7 per cent the previous year
https://www.abs.gov.au/statistics/people/crime-and-justice/personal-fraud/latest-release
Personal Fraud, 2023-24 financial year | Australian Bureau of Statistics
Cited text: The card fraud victimisation rate increased from 8.7 per cent in 2022-23 to 9.9 per cent in 2023-24.
Excerpt: Simon's experience isn't unique. An estimated 9.9 per cent of Australians (2.1 million people) experienced card fraud in 2023-24, up from 8.7 per cent the previous year
https://www.abs.gov.au/statistics/people/crime-and-justice/personal-fraud/latest-release
QUT—3.5 million Australians experienced fraud last year. This could be avoided through 6 simple steps
Cited text: According to the Australian Bureau of Statistics latest Personal Fraud Survey, between July 2023 and June 2024, Australians lost A$2.1 billion through...
Excerpt: Collectively, Australians lost $2.1 billion through credit card fraud between July 2023 and June 2024, with a net loss of $477 million even after reimbursements
https://www.qut.edu.au/news/realfocus/3.5-million-australians-experienced-fraud-last-year
QUT—3.5 million Australians experienced fraud last year. This could be avoided through 6 simple steps
Cited text: Even after reimbursements, the loss was still $477 million.
Excerpt: Collectively, Australians lost $2.1 billion through credit card fraud between July 2023 and June 2024, with a net loss of $477 million even after reimbursements
https://www.qut.edu.au/news/realfocus/3.5-million-australians-experienced-fraud-last-year
Gift Card Statistics (2025): Market Size & Consumer Trends
Cited text: Gift card fraud is the most common form of fraud, with 26.6 per cent of victims indicating that money was taken using gift cards or reload cards.
Excerpt: gift card fraud is now the most common form of fraud globally, with 26.6 per cent of victims indicating money was taken using gift cards or reload cards
https://capitaloneshopping.com/research/gift-card-statistics/
Fraud Statistics | Australian Payments Network
Cited text: Our 2021 Payment Fraud Report reveals that in 2020, with the onset of COVID-19, overall spending on Australian payment cards was down by 2.2 per cent to $801....
Excerpt: In under 15 minutes, he successfully identified the concealed PIN using only the visible details on the card
https://auspaynet.com.au/resources/fraud-statistics
New laws on gift cards—what you need to know now
Cited text: The new federal laws apply to gift cards sold from 1 November 2019 and include three main requirements: Validity Requirement—gift cards must be vali...
Excerpt: Since November 1, 2019, all gift cards sold in Australia must be valid for at least three years, display expiry dates prominently, and cannot charge post-supply fees that reduce their value
https://www.allens.com.au/insights-...laws-on-gift-cards-what-you-need-to-know-now/
New laws on gift cards—what you need to know now
Cited text: The maximum penalty for contravention of these offences is $30,000 for corporations and $6,000 for individuals. In addition, the ACCC can also impose ...
Excerpt: Companies face penalties up to $30,000 for corporations and $6,000 for individuals for non-compliance, with the ACCC able to impose infringement notices up to $11,500 for corporations
https://www.allens.com.au/insights-...laws-on-gift-cards-what-you-need-to-know-now/
Scams and card fraud on the rise | Australian Bureau of Statistics
Cited text: ‘We found 72 per cent of card fraud victims were fully reimbursed by their card issuer,’ Mr. Milne said.
Excerpt: Research shows 72 per cent of card fraud victims are fully reimbursed by their card issuers
https://www.abs.gov.au/media-centre/media-releases/scams-and-card-fraud-rise
FY24 card fraud snapshot | Australian Payments Network
Cited text: · The growing trend of overseas CNP fraud coincides with the emergence of scam compounds throughout Southeast Asia. The United Nations Office on Drugs...
Excerpt: The growing trend of overseas card-not-present fraud coincides with the emergence of scam compounds throughout Southeast Asia, with many pivoting to e-commerce and credit card fraud to obtain card details
https://auspaynet.com.au/insights/blog/Fy24Cardfraud
Gift Card Statistics (2025): Market Size & Consumer Trends
Cited text: 34 per cent of U.S. adults have been targeted by scams seeking payment by gift card. 25 per cent of consumers purchasing a gift card to pay a scammer were warned by a...
Excerpt: Alarmingly, 34 per cent of US adults have been targeted by scams seeking payment by gift cards, and only 25 per cent of consumers purchasing a gift card to pay a scammer were warned by store clerks that their purchase could be part of a scam
https://capitaloneshopping.com/research/gift-card-statistics/
Fraud Statistics | Australian Payments Network
Cited text: Our 2025 Australian Payment Fraud Report shows that the total value of card fraud on Australian-issued cards increased by 20 per cent to $913 million ...
Excerpt: Australian businesses face unprecedented fraud challenges, with total card fraud on Australian-issued cards increasing 20 per cent to $913 million in 2024
https://auspaynet.com.au/resources/fraud-statistics
Consumer Law Australia Legal Updates 2025 | LexisNexis®
Cited text: The ACCC… ... On 13th February 2025, the Scams Prevention Framework Bill 2025 was passed in both Houses of Parliament. The Bill introduces a new Scam ...
Excerpt: The recent Scams Prevention Framework Bill 2025, which passed both houses of Parliament in February, will require social media companies, banks, and telecommunication providers to take 'reasonable steps' to prevent, detect, report, respond…
https://www.lexisnexis.com/en-au/products/practical-guidance/latest-legal-updates/consumer-law
Gift Card Statistics (2025): Market Size & Consumer Trends
Cited text: Americans use their gift cards less than in the past, with a 30.5 per cent increase in average unused gift card value between 2023 and 2024. 20 per cent of people hav...
Excerpt: Americans use their gift cards less than in the past, with a 30.5 per cent increase in average unused gift card value between 2023 and 2024, with 20 per cent of people having at least one gift certificate expire before redeeming
https://capitaloneshopping.com/research/gift-card-statistics/
QUT—3.5 million Australians experienced fraud last year. This could be avoided through 6 simple steps
Cited text: Anyone can report money lost in a scam to ReportCyber, the Australian online police reporting portal for cyber incidents. If you have received scam te...
Excerpt: You can report money lost in scams to ReportCyber, the Australian online police reporting portal, and report scam texts or emails to Scamwatch to assist with education and awareness activities
https://www.qut.edu.au/news/realfocus/3.5-million-australians-experienced-fraud-last-year
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