That's not entirely accurate KiltedTim. Yes the cashier has to activate it, if not activated properly, the gift card won't function as intended. However, that isnt was this discussion is about; people didn't buy gift cards only to get them home and discover they were never activated; they got them home and discovered the balances were stolen and registered to a different account, all while being properly sealed, with a trail to prove it; why would another user go to the trouble to put a used gift card back on the shelf and who would buy a man opened iTunes gift card. Your whole argument is kinda invalid. Scammers are getting more clever. In some cases, these scammers steal unactivated gift cards, copy the code that is exposed on the back without opening the gift card , put it back on the shelf and then once it's activated they are notified (how? I don't know, I'm a productive member of society and don't partake in such activities) at which point they are able to take the balance.
Should the retailer refund the stolen funds? In my opinion, yes. They sold the product. If I bought a defective electronic or a boxed furniture piece from target, they would refund my money. Ultimately, they are selling a product they can't guarantee and then won't stand behind. Apple gives you the illusion their gift cards are safe by being packaged when if fact they're not. If consumers are having a problem with a product, in this case Apple gift cards, then a retailer shouldn't offer them for sale, keep them locked up available by request only, or guarantee their effectiveness.