What Is the Gift Card Scam Going Around?

Gift card scams involve fraudsters manipulating individuals into purchasing gift cards and sharing card details or PINs. These scams exploit the widespread availability and convenience of gift cards, making them a popular tool for criminals. Unlike other payment methods, gift cards are untraceable and irreversible once funds are spent, posing a significant financial risk to victims. The ease with which gift cards can be purchased and converted into cash or used for online purchases makes them appealing to scammers.

Common Gift Card Scam Scenarios

Scammers employ various narratives to coerce individuals into buying gift cards. One common scenario involves impersonating government agencies, such as the IRS, falsely claiming the victim owes back taxes or faces arrest. They might threaten legal action, fines, or jail time if immediate payment is not made via gift cards. Utility companies are also impersonated, with scammers threatening to disconnect services if an overdue bill is not paid immediately using gift cards.

Another prevalent tactic involves scammers posing as tech support from companies like Apple or Microsoft, alleging computer issues and demanding gift card payments to resolve fabricated problems. Emergency or grandparent scams involve fraudsters pretending to be a distressed family member who needs urgent financial help through gift cards for a fabricated crisis. Lottery or sweepstakes scams tell victims they have won a large sum but must first pay “taxes” or “fees” using gift cards to claim their prize. Scammers might also pose as employers, requesting gift cards for urgent business needs or employee benefits.

Identifying Scam Tactics

Any demand for payment using gift cards indicates a scam. Legitimate government agencies, utility companies, or reputable businesses never request payment in this form for taxes, bills, or services. Scammers frequently create a sense of urgency and pressure, threatening immediate negative consequences such as arrest, service termination, or account closure. They aim to prevent victims from thinking critically or seeking advice.

Unsolicited contact, typically through unexpected phone calls, emails, or text messages, often initiates these scams. Scammers commonly direct victims to specific stores or instruct them to purchase particular brands or denominations of gift cards, such as Google Play, Apple, or Amazon cards. They insist on staying on the phone while the victim purchases the cards and then demand the gift card numbers and PINs from the back of the cards. Scammers also reject alternative payment methods, insisting solely on gift cards.

Safeguarding Against Scams

To protect against gift card scams, independently verify any unexpected requests for money or personal information. Contact the organization directly using official, publicly available phone numbers or websites, rather than relying on contact details provided by the caller or sender. Remember that legitimate entities, including government agencies and businesses, do not demand payment in gift cards. Any communication demanding immediate action or payment under threat should be viewed with extreme caution.

Educating family and friends, especially seniors who are frequently targeted, about these scam tactics can help prevent victimization. Protect sensitive personal and financial information by not sharing it with unverified contacts. If a request feels suspicious or appears too good to be true, it likely is a scam. When purchasing physical gift cards, inspect them for signs of tampering, such as damaged protective stickers or exposed PINs, and always keep the receipt.

Actions After Being Scammed

If you suspect or confirm you have fallen victim to a gift card scam, immediate action is necessary. Contact the company that issued the gift card without delay to report the fraud and inquire about freezing or recovering funds. While recovery is not guaranteed, some companies may assist, especially if funds have not yet been drained. Report the scam to federal authorities like the Federal Trade Commission (FTC) and the FBI’s Internet Crime Complaint Center (IC3).

Victims should maintain detailed records of all communications with the scammer, including transaction details and gift card information. This documentation aids in reporting and potential investigation. If personal information was compromised, monitor bank accounts, credit card statements, and credit reports for any unauthorized activity. Change any compromised online passwords immediately to secure accounts and prevent further unauthorized access.