From GCDB:
Have you bought a tampered gift card? I'm an ABC reporter who is looking at how widespread this issue has become in Australia.
Looking for people to send me their stories, where they bought tampered cards from, and if they got money refunded.
Keen to hear if anybody is reporting tampered cards to police or consumer authorities?
You can send me a DM, comment below or ideally get directly in touch via terzon.emilia@abc.net.au
Thanks to James at GCDB.com.au
The real story to investigate with gift cards is how they are allowed to have an expiry date.
Done and approved.
Very basically:
Whilst there is a gift card balance, the distributor has to treat that as "money owing to creditors"/ unsecured creditors. (Among other things, it means if they apply for a loan, this is included as debt/liabilities - so it is money they don't even have, but is tied up and they can't use it).
Until that money is removed from that side of the ledger to the revenue side of the ledger they don't have to pay tax on it or include them in taxable income situations so tax office also wants there to be a time limit.
Why can they just time out and take your money for nothing and pay no GST on them,
Think of them like little loans. Every time that you buy a gift card, you are loaning some of your money to the business.
I don't think there is GST applied to a loan.
They don't take your money, you offer to lend it to them according to whatever terms and conditions you agreed to when you bought it.
Think of them like little loans.
But treat them like cash.
Right up until the expirary date that you agreed to when you bought it/accepted it unless the business enters into insolvency or closes before then.
100% this.
I have a JB Hi-Fi gift card that doesn’t expire, which is great.
But I had a situation this year with a Mitre 10 gift card that had a three-year expiry. My father had originally received it from family and forgotten about it. I later came across it, and it had expired less than three months earlier.
I was able to negotiate having it renewed, but the impression I got was that if it had been expired for much longer than three months, it likely would not have been renewed.
Mitre 10 apparently outsources its gift cards to a company called Vii, so Mitre 10 had to request the renewal through them. Luckily, it was renewed for another three years.
I do not know all the intricacies of how gift cards are managed, but outsourcing something like this and then being limited by that arrangement seems like a bit of a cop out. I still find it pretty sketchy that a $1,000 gift card can expire after only three years.
The company already benefits the longer a gift card goes unspent, because inflation reduces its real value over time. Letting it expire completely just seems excessive.
I still find it pretty sketchy that a $1,000 gift card can expire after only three years.
This is the limit that the tax office set.
That money is revenue and ato wants their tax, however, it is still in credit until it is cashed and is a liability for the store affecting their credit ability until it is finalised.
The company already benefits the longer a gift card goes unspent, because inflation reduces its real value over time.
It has the same effect on them. They're not getting extra money because you have delayed claiming it. The products that you've bought, they have had to buy at the same inflated price as well.
They don't spend your money when you purchase the gift card. It only gets realised when you choose to redeem it. Your money remains on the creditors side of the ledger.
Letting it expire completely just seems excessive.
Like the terms of any agreement, these are the terms of the contract which you agree to.
After the three years, business has to pay tax on revenue they haven't even received and don't know when it will be received.
It's an ATO & legislation thing, not the store thing.
If the business ceases to trade whilst your GC is still live, you become an unsecured creditor, and this isn't indefinite, there are timelines for which the business must meet to wind up.
Woolworths gift cards have no expiry.
@mapax: They're carrying that after three years then. But that is good of them.m
Though, it's because of these dudes (and the other big groups) that buyers think they have a right for change of mind returns and "free" postage etc.
These dudes set this up, force the smaller ones to get on board just to compete, which eats into their profits and makes them less sustainable.
I was going to say that a smaller business may not be able to, but then that's their problem, I suppose, they don't have to offer them for sale.
The company already benefits the longer a gift card goes unspent, because inflation reduces its real value over time.
It has the same effect on them. They're not getting extra money because you have delayed claiming it. The products that you've bought, they have had to buy at the same inflated price as well.
Assuming the business is raising their prices to match rising costs they face and to maintain their margins, they will benefit the longer you delay spending the card. For example, a $100 card gives them $100 of present value cash now (which they can and will spend to get $100 worth of present value inventory, labour, etc), but if you wait 2 years and 11 months to redeem the card they only return to you about $94.50 in present value goods/services (assuming 3% inflation). Remember, they're little loans (to the business) and with 0% interest. Their real cost to fulfil the card falls with inflation and the time value of money.
They don't spend your money when you purchase the gift card. It only gets realised when you choose to redeem it. Your money remains on the creditors side of the ledger.
Half right. Since they get the cash at the time you purchase the card they can then spend it how they please (eg to buy inventory or pay wages, etc) as cash is a current asset. Of course at the same time they record deferred revenue on the balance sheet (a liability). When the gift card is redeemed or expires they debit deferred revenue and credit revenue to recognise the sale, and if it's redeemed for a physical good they also debit cost of goods sold and credit inventory to record the expense (highly simplified example here). It only appears on the P&L statement at redemption or expiry (although you can start recognising the breakage and revenue early).
They want their chicks for free.
are we in 2016? - in all seriousness good for the ABC to do some investigative journalism
Dumping on the ABC for a story that may prevent less-enlightened people getting stung?
Geez.
Dumping on the ABC for a story that may prevent less-enlightened people getting stung?
Geez.
I suppose that is their primary audience.
It's more that it's old news and a YouTuber did his own investigation on it and got it fixed last year
One would've thought … if the woman bought 4x "tampered" GC's from same store - then others would likely have been tampered with ???
Nowhere in ABC story (or other news articles) - do they mention if the other GC's in that same store were also tampered with.
Surely that would've been checked straight away (which hints all others on rack/shelf in that store were OK when checked).
You gotta have REALLY bad luck to get THE ONLY tampered ones from that EXACT store … or ????
I always bought gift cards online, the more reason now to keep buying them online.
Have you been consulted for comment @mapax, that article’s readership would expand ten fold with your expert witness input!
I haven’t been contacted.
The ABC probably don’t want to hear that people should be more cautious and take heed of ADAGCHS, that criminals should punished and gaoled, and that this should have been reported on long ago.
Do investigative reporters pay their sources?
i wonder if the people who tamper with them are the same ones who try and get old ladies to go buy them and pay their "over due tax" with them
It is pretty crazy what happens with tampered gift cards, it's a whole organised operation on the scale of millions of $. People on the ground tamper with the gift cards to steal the codes, then when someone purchases the gift card they're instantly redeemed and used to buy electronics (often Apple products). Those are shipped to warehouses and are later sent overseas to China to be resold.
https://www.nhpr.org/nh-news/2026-05-14/derry-murder-is-the-…
yeh they usually come on student visa from india.. they are recruited by the same groups in their home country, i think the cards are later distributed throughout south east asia and china yeh but the headquarters of the scam is always in india
Why don't people just stop buying these gift cards?
Because then we don't get to post ADAGCHS.
because if you're buying a $5000 laptop you get a $500 discount
Yeah, and in this case you lose $2k.
In addition, if you want to return the item, you get your money back in gift cards. If it has a major failure and you want a refund, you get it in gift cards.
If I pay by credit card I get price protection, an extra year of warranty, and a broken/lost/stolen insurance, as well as having no risk of losing money, and not having to muck around with gift cards.
Lol what. Zero risk. You check the card hasn't been tampered before you buy it. Coles staff will do it for you.
You don't think a $500 discount is worthwhile, wtf are you doing here?
@brendanm: Discount. Apple. 10% off. Stacks with Edu store. End.
If I bought a laptop using this I wouldn't want a refund if it had a major fault. I would want Apple to replace it. I don't need crappy credit card warranty. I would assert ACL statutory warranty - as I have done several times with Apple. I should say I also have CC warranty - never wanted or needed to use it.
There is no risk to losing money. Coles are obligated to refund the money. It's no different to if they bought a chicken at Coles and got home and the package is empty. They can't just say oopsie, tough luck. They have to fix it.
I don't know what to tell you. If you don't get it by now, you will never get it.
More to the point, nobody has a gun to your head. Don't buy them if you disagree. Move on.
If I bought a laptop using this I wouldn't want a refund if it had a major fault. I would want Apple to replace it.
Do you understand that a replacement isn't an absolute guarantee even if it is a major fault and it seems like you get to choose?
Yes, I know ACL, but there are exceptions to this, so even when the choice is technically yours (as per major fault), replacement may not be possible so you will have to look at repair or refund still.
I would assert ACL statutory warranty
Hey? No, you wouldn't.
as I have done several times with Apple.
No, you haven't.
Coles are obligated to refund the money. It's no different to if they bought a chicken at Coles and got home and the package is empty. They can't just say oopsie, tough luck. They have to fix it.
To clarify for those at home - obligated to refund if you can prove they are at fault and it wasn't you who already used it. (Some people don't check these at the store, and others even give them as gifts, so it may be a while until somebody even goes to use it).
@Muppet Detector: wtf are you talking about.
I have used ACL when appropriate and yes I have used it 3 times with apple. The last time was my MBP angle sensor 1 year past their standard warranty. They fixed it no charge. I don't care if you believe me.
Listen I'm not a moron like you guys. I know what to check on an apple gift card. I've bought many things with a stacked edu + gift card discount.
I bought a $7k Mac last week using these gift cards.
I didn't ask for your advice how to use them and I don't need your advice.
y. I would assert ACL statutory warranty - as I have done several times with Apple.
This
I have used ACL when appropriate and yes I have used it 3 times with apple.
ACL don't provide warranties, that's the manufacturer.
@Muppet Detector: Yes it does. Statutory warranty now called consumer guarantees. Same thing
Listen I'm not debating this with someone who clearly hasn't got a clue what they're talking about.
If you don't want gift cards, don't buy them. If you don't understand your statutory rights under ACL, thats your problem.
@lunchbox99: Yes. Guarantees =ACL
Warranties = manufacturer.
Two different products with different obligations for each. They're not interchangeable. Not the same thing at all.
Listen I'm not debating this with someone who clearly hasn't got a clue what they're talking about.
LOL
If you don't understand your statutory rights under ACL, thats your problem.
Dude, you're the one claiming that you utilised ACL for a warranty issue. That's on you. IACL is for guarantees and manufacturer has different responsibilities under each, so def not the same thing and can't be used interchangeably.
@Muppet Detector: I never said they were the same thing. You're inventing a narrative in your head.
I don't even know what the hell you're arguing about. I get that you're embarrassed that you were mouthing off about gift cards without realising this was about the specific ABC apple story.
The email in OP's post is the reporter from the ABC story.
@lunchbox99: I don't buy them. Apple may refuse to replace, which they are allowed to do, and you end up with gift cards 😂
@lunchbox99: If they still have the item that you want. If it is a major fault, you want a replacement but they say "no replacement", probably because they don't have any to replace.
I think we’re at point right now that if you risk having $4500 credit at a store you have nothing else to buy then you can’t blame (or whinge to)others for your stupidity
@Gunnar: You don't understand that people would buy that quantity for a specific purpose- like actually buying a laptop. Go to Coles, get $5k gift cards, redeem on your Apple account, place order for $5k laptop. Have $500 of cash discount on future Coles shopping.
I mean is this that hard to understand? You surely don't think people are buying $5k of cards to redeem for a $10pm App Store subscription?
@lunchbox99: No I get totally get that. The bit is what if something goes wrong with the vendor you’re buying from that sours you off the place then you’re stuck with $x amount of credit at a place you don’t want.
For example Let’s say I plan on buying $2k vouchers at 10% off for JB. I buy what I want but then have an issue and the customer service experience that really makes me hate JB that I never want to do anything with them again. Yes I get my money back but now I’m stuck with $2k in JB credit.
It’s a lot of effort to save $200 if it doesn’t work out. That’s not even going into the pitfalls of buying gift cards second hand
@Gunnar: Its sounds like you categorically don't get it.
This is not a generic store gift card. This is an Apple Card specifically to use at apple. People who are buying $1000s of dollar of Apple gift cards in one lot are doing so for a specific purpose - like buying some specific hardware.
I don't understand how you don't get why people are buying them. It's no different to handing $5000 to apple for the laptop, except you get $500 worth of Coles shopping back.
I think your gripe is with generic gift cards. This is not a generic gift card and nobody buying that quantity is doing so without a specific purchase in mind at apple.
@lunchbox99: Using your apple example what happens when you an issue with and the only course of action for you is you want your physical money back after using the gift card to make a purchase at Apple?
@Gunnar: What do you mean "my apple example". The story that is the subject of this article and this entire discussion is specifically apple gift cards. She didn't buy generic gift card to use at JB or a shopping centre. This story is explicitly about apple gift cards.
https://www.abc.net.au/news/2026-05-21/coles-investigating-m…
Coles refunded her money as they are required to do.
Why would I want my money back? I would want them to provide the laptop. Jeez you blokes are clutching at straws to be upset. You prefer not getting a 10% discount, pay cash. Nobody is forcing you to buy them.
The story that is the subject of this article and this entire discussion is specifically apple gift cards. She didn't buy generic gift card to use at JB or a shopping centre. This story is explicitly about apple gift cards.
That one story is, but the OP is wanting us to do his research for all types of gift cards, not just apples.
Likely OP already knows about that one cos I think they're both working for the same newspaper (and OP is an investigative reporter who probably knows how to google)
OP wants new stories. Not ones he already knows about.
Yes I get my money back but now I’m stuck with $2k in JB credit.
OzBargain classifieds for the win!
Why don't people just stop buying these gift cards?
Would make @mapax redundant.
No you're not
Have you bought a tampered gift card?
No
Old news, wasn’t this fixed like 3 months ago
There was a new story yesterday of a woman getting done for 4 x $500 Apple Card’s from Coles
Sky News is so on point then… riiight (wing that is)
Who'da thunk it? Two different nooze outlets with shite reporting. Whatever will they come up with next?
The real story to investigate with gift cards is how they are allowed to have an expiry date. Why can they just time out and take your money for nothing and pay no GST on them, when some ethical businesses don't expire them.