The holiday season is approaching, and gift card scams are a common tactic used to steal your money. Understanding how this scam works and staying alert can help you avoid becoming a victim.
How the gift card scam works
Gift card scams start with a call, text, email, or social media message. Scammers will try every trick to get you to buy gift cards and hand over the card number and PIN codes. :
Recognize the red flags
- Watch for these warning signs:
- Request for payment via gift cards: Legitimate organizations will never ask you to pay with gift cards.
- Urgency and pressure: Scammers often create a sense of urgency, pushing you to buy and send gift card information immediately.
- Pretending to be someone you know or trust: Scammers might impersonate a family member, friend, coworker, financial institution and more. When in doubt, call the person or business directly.
Types of gift card scams
- Scammers say they’re from the government: They say they’re from the IRS, the Social Security Administration, etc. Government agencies won’t contact you to demand immediate payment. They never demand payment by gift card.
- Scammers claim to be from tech support: They say they’re from Microsoft or Apple and there’s something wrong with your computer. They ask for remote access, and say to pay them to get it fixed. Don’t give them access to your computer.
- Scammers claim to be a friend or family member with an emergency: If the scammer uses voice cloning, they may even sound just like your loved one. They ask you to send money right away, but not tell anyone. If you’re worried, contact the friend or relative to check that everything is all right.
- Scammers claim you’ve won a prize: But first, they tell you to pay fees or other charges with a gift card. No honest business or agency will ever make you buy a gift card to pay them for a prize. And did you even enter to win that prize?
- Scammers claim they’re from your utility company: They threaten to cut off your service if you don’t pay immediately. But utility companies don’t work that way.
- Scammers ask for money after they chat you up on a dating website.: Romance scammers will make up any story to trick you into buying a gift card to send them money. Slow down. Never send money or gifts to anyone you haven’t met in person, even if they send you money first.
- Scammers send a check for way more than you expected: They tell you to deposit the check and give them the difference on a gift card. Don’t do it. That check will be fake, and you’ll be out all that money.
How to protect yourself
- Be skeptical: Always question requests for payment via gift card, even from someone claiming to represent a legitimate organization.
- Verify contact details: If someone you know asks for a gift card, confirm their identity by contacting them through a known number or email.
- Report scams immediately: If you receive a suspicious request, report it to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov or contact the gift card company directly to see if funds can be recovered.
What to do If you’re targeted
If you think you’ve fallen for a gift card scam, act fast:
- Contact the gift card company: Report the fraud, and see if any funds are still on the card. The company may be able to help.
- Report to the FTC: Even if you’re unable to recover the funds, reporting the scam can help authorities track and prevent future scams.
Stay alert and protect yourself from falling for this costly trick.
