Safety First: Gift Card Scams
Gift card scams are on the rise, and are even more popular during the holiday season. First things first – no legitimate business or government agency will ask for payment in the form of a gift card. Keep reading to learn how these gift card scams work, the most common gift card scams, and what to do if you think you might have been a victim of a gift card scam.
How Gift Card Scams Work
Scammers may contact you by texting, calling, or messaging on social media to trick you into purchasing a gift card for payment. Here are some of the most common tactics that scammers use to trick you into a gift card scam:
- Urgency: Scammers don’t want you to have time to think about what they’re saying or talk to someone you trust. They create urgency by saying you need to pay them right away or something may happen.
- Specific Gift Cards: Scammers may tell you to put money on a specific gift card like Amazon, Target, or Apple, or tell you to purchase the gift card from a specific store like Walmart, Target, or CVS. They also may tell you to purchase gift cards at multiple stores so that cashiers will not get suspicious.
- Ask for Gift Card Number and Pin: If a scammer can get the gift card number and pin from the back of your gift card, then they have access to all the money that has been loaded on the card. Don’t give them this information and don’t send a picture of your card.
Common Gift Card Scams
Scammers have different stories that they tell to attempt to convince you to buy a gift card for payment. Here are some of their most common stories:
- Government Employee: Scammers may say they’re an employee from the IRS, Social Security, or FTC and that you have taxes or a fine to pay immediately. Government agencies will never contact you to demand an immediate payment and will never demand payment by gift card.
- Friends or Family in an Emergency Situation: Scammers may contact you pretending to be a family member or a friend who is stuck in an emergency situation and needs payment in the form of a gift card to help. It is most likely a scam, but if you’re worried, reach out to the friend or relative and make sure they aren’t actually in an emergency situation.
- Prize Winner: Scammers may reach out to tell you that you have won a prize, but they need you to pay a fee with a gift card before accepting your prize. This is a scam to trick you into giving them money through a gift card.
- Romance Scam: Scammers may use dating websites to gain your trust, and then make up a story to trick you into buying a gift card. You should never send any form of payment to people that you haven’t met in person.
What to do if You’re a Victim of a Gift Card Scam
If you have given payment in the form of a gift card, or gave someone the numbers off of the back of your gift card, then you could be a victim of a gift card scam. You should always keep your gift card receipt and store receipt whenever you purchase a gift card. You will need them in the case of a scam. Here is what to do if you think you might have been a victim:
- Report the Scam to the Gift Card Company: No matter how long ago the scam happened, you should report it to the gift card company right away. Make sure you have a copy of your receipt.
- Tell the FTC at ReportFraud.ftc.gov. Reporting the information helps the FTC track gift card scams to prevent them as much as possible going forward.
When buying gift cards, make sure you stick to places that you know and trust. It is also important to inspect your gift card for tampering before purchasing and look for the protective sticker over the pin on the back of the card. Lastly, always remember to keep your store receipt and gift card receipt in the case that you need to report a scam with the gift card company, and never give payment in the form of a gift card!
Source: FTC Consumer Advice Article “Avoiding and Reporting Gift Card Scams”