Gift Card Scams

RECOGNIZE:

Proceed with caution if someone:

• Threatens to arrest you, take legal action against you or cut off your services if you don’t pay immediately.
• Asks you to use self checkout. Scammers do this to avoid a suspicious cashier who may try to stop the transaction.
• Instructs you to buy gift cards at multiple different stores. They do this to avoid store associates who may ask questions about why you are purchasing a large sum of gift cards.
• Wants to stay on the line with you while you go to the store to purchase the gift cards. They do this so they can talk you through any uncertainty that may arise from store associates.
• Tells you exactly which gift cards to buy. For example, they might tell you to purchase eBay, Google Play, Target or iTunes gift cards.

REPORT AND RECOVER:

Remember that it is important to act quickly if you believe you have been the target of a gift card payment scam. The sooner you take action, the more likely you are to minimize the damage and protect yourself from further harm.

• Keep the cards and receipts. This will help when filing a report.
• Contact the gift card issuer right away to report the fraudulent activity. Some gift card issuers may have specific procedures for handling fraud claims, so be sure to follow their instructions.
• If you shared any personal information or account details with the scammer, change your passwords immediately and monitor your accounts for any unauthorized activity.
• Report it to the FTC—even if you didn’t lose money—at ReportFraud.ftc.gov.

SCAMMERS MAY POSE AS:

Government Officials

They pose as government officials, such as IRS agents, and demand payment for taxes or fines.

Tech Support Agents

They claim that there is a problem with your computer or phone asking for payment to fix the problem.

Bosses or Coworkers

They pose as your boss or coworker, requesting gift cards for various reasons, like bonuses or client gifts.

Utility Companies

They claim that payment is necessary to avoid shutoff of services or to pay off an outstanding balance.

Charity Representatives

They pose as representatives from legitimate charities asking for donations.

RECOGNIZE:

These scammers might:

• Create fake activation websites in hopes that you will land on these fraud sites instead of the real activation site. When you enter the gift card number and PIN into the fake website, the scammer takes that information, activates it themselves on a real activation website and drains the value of the gift cards.
• Use fake websites to sell you used gift cards at prices that are too good to be true. Once you activate one of these cards, you’ll lose the gift card balance because they already stole the numbers.
• Take a gift card from the display, copy down the number on the card and put it back on the display. Then, they wait for you to buy the compromised gift card, checking the balance online until a dollar amount is loaded onto the card. As soon as a balance appears, they use the gift card number online or make a duplicate plastic gift card that can be used in stores.
• Tamper with the card by cutting seams, scratching off pin labels, or putting stickers over barcodes. If you find a damaged card, turn it into a store associate.

REPORT AND RECOVER:

Remember that it is important to act quickly if you believe you have been the target of a zero-value gift card scam. The sooner you take action, the more likely you are to minimize the damage and protect yourself from further harm.

• Keep the cards and receipts. This will help when filing a report.
• Contact the gift card issuer or store where you bought the gift card right away to report the fraudulent activity. Gift card issuers and retailers may have specific procedures for handling fraud claims, so be sure to follow their instructions.
• Report it to the FTC—even if you didn’t lose money—at ReportFraud.ftc.gov.

SPOT A FAKE GIFT CARD WEBSITE:

Scammers are crafty, and they are really good at making fake websites look legitimate. Before clicking on a link or entering any information on a website, pay close attention to:

Website URLs

Look for extra characters and review what precedes the final “.com”, “.org”, “.net”, etc.

Design Flaws and Errors

Scammers want the website to look real, but they are moving fast and can miss errors.

Padlock Icons and “HTTPS:”

These show if a website has a security certificate, but don’t rely on these as the only way to verify a website. Scammers have started using these certificates to make their website look real. However, they will let you know that the connection between your browser and the website server is encrypted.

A Gut Feeling

Don’t set your suspicions aside for a deal that’s too good to be true. If you have a feeling that something is wrong, move on.

RECOGNIZE:

These scammers might:

• Initiate the scam using phishing emails or text messages.
• Promise you a gift card for completing a survey on behalf of a well-known company in an attempt to steal your information.
• Tell you that the giveaway is for a limited time only and that you must act quickly to take advantage of the offer. They do this so you will take action before you realize it’s too good to be true.
• Request that you pay a small handling fee in order to receive the gift card. You should never have to pay to receive a free gift.
• Ask you to click on a link in an attempt to install malware on your device.

REPORT AND RECOVER:

Remember that it is important to act quickly if you believe you have been the target of a ‘free’ gift card giveaway scam. The sooner you take action, the more likely you are to minimize the damage and protect yourself from further harm.

• If you provided financial information, contact your bank or credit card company right away. They can help you monitor your accounts and prevent unauthorized charges.
• If you provided personal information, like your Social Security number, you may be at risk for identity theft. Keep an eye on your credit report and financial accounts for any unusual activity, and consider placing a freeze on your credit.
• If you clicked on a link, run a full system scan using antivirus software to check if your device was infected with malware.
• Report it to the FTC—even if you didn’t provide sensitive information or lose money—at ReportFraud.ftc.gov.

SPOT A PHISHING ATTEMPT:

Phishing emails and text messages are designed to look legitimate, but there are several signs you can look for to identify them. Pay close attention to:

Urgent Language

Phishing emails and text messages often use urgent language to pressure you into taking immediate action.

Requests for Personal Info

Legitimate companies typically don’t ask for personal information like your Social Security number, credit card information or passwords via email or text message.

Unfamiliar Sender

Be cautious of emails or text messages that appear to be from a company or organization you don’t recognize, or from an unfamiliar email address or phone number.

Poor Spelling or Grammar

This might be a sign that they were created by scammers who were in a hurry or may not be native English speakers.