Warning: Don't Buy Coles Mastercard Gift Card, High Risk of Tampering

AsukaST on 28/11/2025 - 17:10
Last edited 07/04/2026 - 17:52 by 1 other user

Update 16/Jan: https://www.ozbargain.com.au/comment/17279025/redir
Update 31/Mar: https://www.ozbargain.com.au/comment/17487617/redir

Original Post:
There is currently a $13 off $250 Coles Mastercard Gift Card ($7 Purchase Fee, Registered Flybuys Card Required, In-Store Only) @ Coles deal running at Coles.

On 26/Nov, I purchased 2x $250 Coles Mastercard Gift Card, intend to pay for my water bills.
Location is Chadstone Shopping Centre, Melbourne SE.
Today (28/Nov), I found both cards are tampered.
Someone spent all the balance at 6am on 27/Nov, one in Woolworth's Blackburn South, the other in Woolworth's Clayton.
Here is the transaction list:
https://files.ozbargain.com.au/upload/210713/125747/screensh…
(Time shown on their website is USA time.)
Both WW transactions was made at 3AM Melbourne time. I am not sure how they did it because it's not a 24-hours WW.

When I purchase them, I have checked the package carefully.
When I opened the package, I don't feel like it's resealed.
Card numbers and CVV are also printed in good condition.
I've purchased and used more than 200+ of these cards in recent years, I believe my 2 cards package are not being opened before.
I don't really know how they can spend the balance in a physical Woolworth's store without the actual Coles Mastercard Gift Card, because these cards cannot be added to digital wallets.

Apparently I am not the only victim in this week, another victim here, and here from Elsternwick

It looks like if you follow the steps and report online, new cards will arrive in your letter box within a week time.
I will see how it goes and report back here.

I am not going to purchase again in the next 3 months or so until they clear all the current stock.

Financial Gift Card InComm MasterCard Prepaid Card

Comments

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  • Nillionaire on 28/11/2025 - 17:27
    +28

    Something really needs to be done about this.
    I can't imagine how embarrassed I would feel if I gifted someone a gift card that didn't work and how awkward it would be to tell someone the card they gifted me doesn't work.

    Most people here are savvy enough to deal with disputes after but if we're struggling, imagine the ordinary innocent shoppers.

  • Jaduqimon on 28/11/2025 - 17:24
    +8

    never buy physical gift cards. not worth the hassle.

    buy digital only.

    • AsukaST on 28/11/2025 - 17:28
      +2

      Disagree. Back in the old days when it was 10% off digital Coles Mastercard Gift Card, their system send the same card number and CVV to 2 different orders.
      It was a chaos.

      • Poor Ass on 30/11/2025 - 19:59
        +3

        Dunno why you got negged this actually happened

    • Ocker on 28/11/2025 - 20:19
      +2

      What happened to the good old fashion way of giving cash in an envelope as a gift?

      • pscac001 on 28/11/2025 - 20:50
        +13

        Pretty sure most ozbargainers aren't buying them for gifts, they are buying them to get discounts, or points from services that don't normally allow points.

  • JohnSauce on 28/11/2025 - 19:19
    +8

    Yes new technique has been used by scammers. Card has been opened without doubt and they just write in the magnetic stripe information of the original card with a blank card and they will demagnetise your original card. Basically your card has been copied.

    You can try to swipe your card in anywhere there cards are accepted and nothing will come out on the eftpos machine screen.

    I will suggest avoid these card in the period of time when Christmas is coming.

  • bigmudcake on 29/11/2025 - 08:40
    +5

    How hard would it be for both Coles and Woolies to have "token" cards that you pick up instead of the real ones. Then at time of purchase at the register or self service, its swapped out with the real one by the checkout operator. They has to be involved in the purchase anyway at self service. Wouldnt take that much more work by Coles/Woolies and would greatly eliminate the theft of the real ones for tampering.

    Its far more costly to fix tampered ones after the fact, than putting in an extra simple step in the purchase process. They could even have same number of token cards as real ones to keep track of shelf inventory (prevent trying to purchase a card thats already sold out).

    Another option they could do is generate the CVV when card is activated at the register, which is then recorded in the receipt and written into a designated area on the packaging by checkout operator or self service attendant. Instructions to do this could also be written on packaging, that also instructs the purchaser to write cvv into the designated area on the card after opening. This would still be safe and secure as cvv is useless without knowing the card number which is still sealed inside the packaging.

    Alternatively the PIN could be generated and stored on the receipt, which is then needed to look up the balance, or thus needed by hackers to see if card is activated.

    There are a few methods they could use to improve security. Making packaging more tamper proof is an expensive dead end in my opinion.

    • VantageXL on 29/11/2025 - 14:45
      +3

      There are a few methods they could use to improve security

      Definitely. I like the way True Rewards gift cards work. They sell "physical" Visa and multi-retailer gift cards in-store at Ritchies, Ampol, BP etc but they're just identical pieces of cardboard with instructions on them. The actual sensitive information (the redemption code) is printed on the receipt and you use that to setup your gift card online.

      It may not be as convenient as buying a physical card that you can immediately start swiping but I think it's a lot more secure. It also produces less waste.

    • surfingedge on 29/11/2025 - 10:25
      +1

      The first idea won't help if tampering occurs at the factory. Other ideas are good

      • bigmudcake on 29/11/2025 - 10:46
        +1

        The main issue is theft at the shop for purpose of tampering. History has shown that tampering occurring during production is extremely rare and is probably mitigated with QA and fraud checking down the chain. That risk would also apply to any credit or debit card being manufactured and sent out. I personally have not heard of such an incident occurring.

        • Craze on 17/12/2025 - 21:52

          But what if it's an insider job?

  • Downvoter on 28/11/2025 - 17:11
    +3

    Hands off the gift cards Hugh!

    • spackbace on 28/11/2025 - 17:28

      Hugh Jass?

    • ATTS on 30/11/2025 - 11:56

      I get worried with starter sims also, is it also vulnerable to being compromising alsos?

  • suti1 on 28/11/2025 - 19:24
    +3

    So it's just Victoria…. and if someone wanted fo track the perpetrator down it wouldnt be hard..ask for the cctv at that time. Woolies might not care until you tell them this person might be doing the same tampering at their stores.

    Anywsy, Most of the stores i buy these from in nsw have them behind the counter where they sell cigs. If they are tampered with then you know who…

    • surfingedge on 28/11/2025 - 20:24
      +4

      It does seem that the majority of tampering stories come from VIC / Melbourne suburbs. Relatively fewer posts about tampered cards in Syd / Bris

      The problem is the risk is disproportionate to the reward. If you have one tampered $250 card that isn't refunded, you need to successfully use over 40 of them just to break even

      Surely there has to be a technological solution. For example, a random PIN could be generated at the time of activation and printed on the receipt, so the thieves can't use a cloned card. The PIN could be required for online use too (is there a reason the cards can't support 3d secure?)

      • RockyRaccoon on 29/11/2025 - 07:52
        +1

        There are - and for example Apple gift cards have a way of minimising this. (Wont share how), but still not completely fool proof.

        Risk rises in higher density area's. Note I say higher. There is no true demograpic data to say who does this, but traditional higher crime spots probably greater risk.

        Does Coles Mastercard have the same level of security I dont know. Maybe member Wookiemonster can give more insights.

        As for tampering they can do it easily. One yes - ironically Apple giftcard, I bought was opened and even the scratchy inside was intact. When I scratched it, some of the Account numbers were missing so I didnt have enough to activate it. (I had done that immediately after getting home). After puzzling over this for a little bit, I then took it back within an hour, Coles store replaced it on the spot said that this is now what they are doing.

        My guess in this case, its a trick to slow you down from using it, giving them time to activate it (With, I guess Bots as others have said) before you can report it.

        In that case I then, in front of staff scratched the new card to be sure.

        Nothing shouted tampered with. I am not 100% on how good that was, because I wasnt looking for it like I would now.

    • Jaduqimon on 28/11/2025 - 20:33

      cctv aint gona help if they come in with hoodies and covid 19 masks.

  • MS Paint on 29/11/2025 - 02:12
    +3

    All this to save a few bucks on your water bill? FFS

    Would love to see a detailed time and motion study on this one.

    • brad1-8tsi on 30/11/2025 - 19:53

      I bought $350 of 3% off e-gift cards to buy an ebay purchase on Friday. No way I'd faff about going to the shops to do it.

      Ditto 5% off Woolworths digital cards for our monthly $500+ shop.

  • Onemoredeal on 28/11/2025 - 18:39
    +2

    I don’t understand how they scam them? Doesn’t the attendant at the supermarket have to physically come over and activate it at the register before it will work ? Like when I buy a prepaid sim?

    • Jaduqimon on 28/11/2025 - 19:09
      +13

      typically they steal the card, write down the number/cvv/exp date. reseal and make it look untampered.

      at that point in time, the card is not active but they write a script to constantly ping the numbers they have recorded until one day it gets activated, then they immediately spend it.

      • datafellows on 29/11/2025 - 14:30
        +10

        Card that gets pinged more than few times in a day should be automatically deactivated by the system so they could not be sold.

        Problem isn't big enough that businesses care though :P

      • ninohax on 28/11/2025 - 22:30
        +1

        I can't seem to think of a way how you can take the card out and put it back in without it clearly looking it has been tampered with. As long as you do your due diligence with the visual check I reckon you would be all right.

        • psdillon on 29/11/2025 - 11:26

          Maybe open it from the other end, where you wouldn't notice.

  • mapax on 28/11/2025 - 18:46
    +2

    ADAGCHS

  • lilkid28 on 29/11/2025 - 00:47
    +2

    Happened to me in this deal: https://www.ozbargain.com.au/node/931614

    I waited 1 day and my card was used.

    I already warned whoevery buying needs to use it immediately within hours/same day. You waited 2 days..

    • AsukaST on 29/11/2025 - 00:53

      Are you also in Melbourne SE?
      Did you managed to get a new card from them?
      how long did it take?

      • lilkid28 on 29/11/2025 - 01:27
        +2

        CBD.. Haven't gotten new card. Haven't heard back. Need to follow up.

  • Poor Ass on 30/11/2025 - 20:03
    +2

    Any ever thought this could be an inside job with no tampering?

    Like when it was manufactured someone got the details and it was dispatched to the require Coles

  • AsukaST on 16/01/2026 - 11:33
    +2

    Update: I lodged my unauthorized transaction claim on 28/Nov.
    On 1 Dec I received emails and ask me to send the further info, i.e. receipts, photo of packaging etc.
    Today on 16/Jan, I received emails:

    After a thorough review of your account and evaluation of the evidence provided, unfortunately we are unable to approve your case and it has been closed.

    So they decided not to provide any evidence and legitimate reasoning. That's all what they said.
    I've replied and ask them to respect my rights under the ACL. I've also demanded an immediate refund, otherwise I will lodge a complaint against them to Consumer Affairs Victoria and Australian Securities and Investments Commission. I will also consider bring the case to VCAT.
    Let's see how it goes.

    • timedzone on 16/01/2026 - 11:51
      +2

      U can AFCA first before VCAT. At least no upfront cost.

      • AsukaST on 16/01/2026 - 12:12
        +1

        Thanks, could you please share how did you go with AFCA?

        • timedzone on 16/01/2026 - 12:40
          +1

          Complain against the Heritage Bank and they will escalate it to Incomm exeutives for you. If it is just $100-$200 I dont see why they would bother letting it go out of hand.

    • test8888 on 20/01/2026 - 12:40

      I had transactions dispute back in April 2025. They spent 3months investigation and approved, another 3m to post out replacement cards.
      unluckily one of replacement cards was false, had to lodge new case again and looped in 3months investigation again… still pending.

      feeling my case may be longest waiting

  • randomusername2017 on 28/11/2025 - 17:11
    +1

    will see how it goes and report back

    Following 🍿

  • [Deactivated] on 29/11/2025 - 09:00
    +1

    Gift cards always have some issue in the long term.

    It is difficult to ROI on some of these. I had an issue which kept recurring regarding Woolworths gift cards whereby the terminal times out and you lose the value on the card.

    I just pay cash these days.

  • mreddie on 30/11/2025 - 20:08
    +1

    Just buy digital cards, physical are too risky these days.

  • Arsi on 30/11/2025 - 21:52
    +1

    Looks like the cards are no longer working for ATO payments as well. They were working until Thursday but now the payment is declining. Looks like ATO has implemented 2FA for the payments and hence these gift cards are no longer working.

    • Gelato on 01/12/2025 - 00:13
      +1

      ATO is also having system maintenance https://www.ato.gov.au/online-services/system-maintenance

      Going to try again when it's done, fingers crossed it will work again lol

      • Poor Ass on 01/12/2025 - 10:23
        +1

        that ship has sailed

        they no longer work on internet or phone payments since their latest upgrade

        • benwaffle on 03/12/2025 - 01:22
          +2

          they still work over the phone with Government EasyPay

          • Poor Ass on 03/12/2025 - 10:03

            @benwaffle: no they do not it will reject for coles mastercard gc

            • benwaffle on 03/12/2025 - 21:57
              +2

              @Poor Ass: I just paid 5 earlier today. The automated voice payment works without issue

        • tenpercent on 03/12/2025 - 22:00
          +1

          "upgrade" ha!

    • rekke on 09/12/2025 - 10:41

      That's unfortunate - so both the ATO website and EasyPay both no longer work?

  • lilyhu on 03/12/2025 - 10:56
    +1

    anyone else had luck with ATO…I just tried and gone thru 2x $250 payments succesfully with these coles mc gc

    • Poor Ass on 03/12/2025 - 22:44

      online or over the phone?

      • andylch on 06/12/2025 - 07:42
        +1

        Phone today

        • Poor Ass on 06/12/2025 - 12:42

          Nice still works for ya

    • Yola on 07/12/2025 - 17:36

      Just tried to make a payment through phone easy pay, not accepted.

  • skrv on 07/04/2026 - 12:28
    +1

    Mine declained as well on the 90th day. Following up with AustraliaDisputes team. If no reponse in few days, going to lodge with AFCA.

    • AsukaST on 07/04/2026 - 15:08

      How can I contact the AustraliaDisputes team?

    • test8888 on 07/04/2026 - 16:34

      my case https://www.ozbargain.com.au/comment/17288978/redir has been waiting more than 1year and called many times to chase up.
      today the guy just kicked to the same AustraliaDisputes team. so ridiculous

      • test8888 on 07/04/2026 - 17:35

        EDIT:
        just found the Disputes team is themselves, so kicked back to the beginning.
        I lodged case with AFCA (first time), will see.

  • Alexxx on 30/11/2025 - 09:17

    Everyone should also know that TCN cards can be redeemed without opening them.

    https://youtu.be/oBarXDL23hs

    Edit: This has been fixed now but might still be valid for any cards you bought previously and haven’t used yet so I’m leaving it here.

  • cheap not nasty on 30/11/2025 - 12:06

    This happened to me earlier this year, contacted the company and they sent me out replacement cards, no problem. It did take 2 weeks for the cads to arrive in the mail. I took no chances and spent them the minute I got them out of the letterbox - ww's gift card using paypal via RAA website. But it was a nail biting 2 weeks. I couldn't afford to lose $500 then or now. No issues at all with their customer service.

  • Poor Ass on 30/11/2025 - 18:29

    Did you buy the ones with the red stripe or just the ones without?

    • timedzone on 30/11/2025 - 18:33

      The 10/28 ones are definitely a lot easier to rip open and get rid of the glue dots.

      • Poor Ass on 30/11/2025 - 19:40

        The red stripe ones are much better

        • dma1212 on 01/12/2025 - 07:48
          +1

          I had a $100 card last four digits scratched off with the red strip, which brings me to believe it maybe inside job of fraud.

  • jlien on 01/12/2025 - 09:16

    i bought my 5x cards last wednesday. Fortunately the coles i go to store them behind the service desk.
    Still; i get paranoid from reading all the horror stories so i spent them all on bills (unfortunately) within a couple hours.

  • penting on 01/12/2025 - 10:19

    yup, also with Apple GC.

    i bought one then try to add it to my account and said card invalid/been used before. luckily i was still 5 minutes after checkout and get it swapped and the CS swapped it with another gc with the same problem. ended up with a refund from coles.

    I now only buy Apple GC with the range value instead of the fixed value.

  • Ezio on 16/01/2026 - 12:03

    These cards suck even if they've not been tampered with, they've blocked 2 of my last 4 cards while making a payment online (balance was available).

  • skrv on 20/01/2026 - 11:30

    Raised a case for one of the recently compromised card. How long does it take for the card to be replaced? Has anyone gone through this process recently? if yes, please share the timeline if you would like.

    • Wencong on 26/03/2026 - 21:09

      Dispute got declined after an 88-day investigation.

      • skrv on 28/03/2026 - 10:38

        That't aweful. Ia there a way to raise complain with Coles? I have raised a case 80 days ago, not received a response yet. Not used the card even once. Based on yours, i am guessing that mine will be declined as well.

        Is anyone in the group was successful with dispute?

      • lilkid28 on 28/03/2026 - 11:39

        Need to raise an AFCA complaint.

  • AsukaST on 07/04/2026 - 17:51

    Update 31/3:
    In mid-Jan I called back their CS hotline, ask for an reason why they declined my case.
    The person on the phone says he doesn't know the reason but he will help me to reopen the case. He asked me to wait for 8-10 weeks.

    So now after 10 weeks, nothing happen of course. I called them again and another CS told me the case is NEVER-REOPENED!
    A few years ago during the NSW massage fraud I got my new cards within 3 months.
    Looks like their dispute handling process has changed significantly in the last few year years.

    The CS told me to email them again and they will reopen the case for me.
    Yeah Nah, what a load of BS. I have enough dealing of them now.
    I paid will zip - Google Pay so I will lodge a chargeback with zip. Let's see how it goes.
    If unsuccessful, I will make a complaint with the AFCA.

  • rekke on 28/11/2025 - 17:30
    -1

    YMMV. Paid off a 40k HECS debt with these and no issue with any of the cards. Earned credit card points while purchasing them and 40k Flybuys points too. Took out an AmEx to buy them and got the 100k Velocity points sign up bonus from the card using the gift card purchases to meet the spend threshold. Definitely was a risky move but would do it again. Can probably do this for company tax ATO bills too I think there are a lot of people who use them for their company tax bills.

    • Jimothy Wongingtons on 28/11/2025 - 17:33
      +2

      40k hecs

      yoooo wtf how many cards did that need to be split up across?

      • rekke on 28/11/2025 - 17:35
        +5

        Roughly 150x $250 cards a few extra $100 ones once it was all said and done

        • psdillon on 29/11/2025 - 11:25

          Just wow… did you test 1, then 5, then 20 cards at a time?

          • rekke on 29/11/2025 - 20:59
            +1

            @psdillon: Pretty much it was like 8 different Flybuys accounts across 7 days on the Coles weekly promo. Used them all ASAP after purchasing them to minimise risk of having it activated and a balance on the cards. ATO only lets you do so many per day which was annoying.

            Already knew they worked from having a few laying around from a previous promo so waited for the opportunity and took it. Would do it again but it can be super risky - but at that scale the savings + promos made it extremely profitable - you can calculate the rough profit based on what I said above:)

            • lilkid28 on 08/12/2025 - 18:06

              @rekke: 5 cards per Flybuys account = $1250
              8 Accounts = $10,000

              How do you pay $40k? You'd need 32 Flybuys account no? Unless the promo is 5 cards per day per Flybuys which I didn't know?

              • rekke on 09/12/2025 - 09:48

                @lilkid28: 5 cards per day per Flybuys correct. However Coles policy says a limit of 5 per day per customer… so you can either get a different checkout staff or a different Coles to get around this :p

                • Some Guy on 20/01/2026 - 15:23

                  @rekke: Must have been a while ago. These have been limited to 5 cards per account for some time now. But they are on 'sale' regularly.

                  • rekke on 22/01/2026 - 08:57

                    @Some Guy: Yes but there is no limit to how many 'accounts' you can have ….

        • Jimothy Wongingtons on 29/11/2025 - 12:57

          Well u definitely must have balls of steel - could easily have ended up like this gift card horror story

          • rekke on 29/11/2025 - 21:00
            +2

            @Jimothy Wongingtons: Was totally scared but I read a lot of people have been doing this for a long time with company tax bills at the ATO on a few other points/churning forums, it's not uncommon at all. They probably don't like me sharing this secret haha

  • timedzone on 30/11/2025 - 00:34
    -4

    People keep saying that there is no sign of tampering, which is simply not possible. Scammers are not Gods nor magicians and not even excessively careful when tampering the cards for the volume they need.
    Just check carefully before you purchase. If you can open them before paying that would be the best, if you can't you can still easily spot tampered cards with some quick checks for signs of resealing, particularly on the sides.
    The easiest way to tell for this type of seal packs is to take a few cards, stack them together and look at all 4 sides. You can easily spot irregularities if any have been resealed.

    • capslock on 30/11/2025 - 05:00
      +3

      You don't know what you're talking about. Only people who have been scammed will know that the tampering is undetectable without opening it.

      • timedzone on 30/11/2025 - 10:09
        -2

        They are absolutely detectable and I take them off the shelf all the time. You just need to be more careful.
        I have also bought them in the past but not a single one after I started to check before purchase.

        • jkcat on 30/11/2025 - 16:29

          People like you might as you're already on the alert, but the average public simply don't. Imagine an old man tries buy a stocking stuffer gift card for his grandson, is it a reasonable ask that he puts on his reading glasses to check any signs of tampering?
          The vendors / shops need to solve this problem for everyone.

          • timedzone on 30/11/2025 - 18:30
            -7

            @jkcat: I don't think ozb members are the "average public" when it comes to buying gift cards, and this isn't too much to ask if you are planning to buy a shitloads of them to make money.
            Of course we can blame the card issuers and scammers but ultimately you are wasting your time if you don't check them carefully before purchase.

            • 2027 on 01/12/2025 - 09:58

              @timedzone: Do you think it would help if the stores put up some signage near the gift cards, asking their customers to carefully inspect these “new” gift cards, and to be more careful when checking?

              • capslock on 01/12/2025 - 11:42

                @2027: If you had a stack of cards which you know are genuine, and a stack of cards which you know are tampered with then you can maybe spend time looking for differences.

                In the real world, you might have only 5 cards left on the shelf, you have no idea if they are all genuine or all tampered with or a mix of both. They all look the same. So what do you do?

                • 2027 on 01/12/2025 - 11:53

                  @capslock: Exactly. In my view, expecting consumers to carefully inspect brand new products before purchase is absurd. Advising the purchaser of gift cards to “be more careful” is not the ultimate solution to this problem.

                • timedzone on 01/12/2025 - 14:13
                  -1

                  @capslock: Tampered cards are not machine-made, the 5 tampered cards will all look different and you will be able to tell if you have checked.
                  Nobody is forcing you to spend time looking for differences, but if you don't, you are likely to waste a lot more time trying to get them refunded/replaced. It is your own choice eventually but I think the choice is obvious.

              • timedzone on 01/12/2025 - 13:56

                @2027: From my own experience and what I have heard, the stores/card issuers will eventually refund/replace the tampered cards. They are not asking you to examine the cards carefully, but it simply wastes you a lot of time if you don't do that and bought tampered cards.

    • Poor Ass on 01/12/2025 - 12:00
      +2

      mate I reckon it's an inside job at the factory

      • Azro on 17/12/2025 - 17:09

        This is what I think too and I made a post about scratched off Apple gift cards a while back. I can't think of any other possibility.

  • Wencong on 09/04/2026 - 20:17

    Just following up, although got refused email a few days ago, I have received the replacement card today, and checked the balance, which is $100. Anyone got declined may keep an eye on the mailbox, which may contain the replacement card.

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