The Impact of Gift Card Scams
According to recent estimates, the global market for gift cards was valued at $899.3 billion in 2022, making it a highly lucrative target for scammers. Victims of gift card scams suffer financial losses and emotional distress, and it is virtually impossible to recover the funds lost to these scams.
$228.1M
reported losses to gift card related scams in 2022
48,800
reports with gift cards as payment method in 2022
Learn more about the most popular gift card scams:
Gift Card Payment Scams
Scammers pose as legitimate businesses or organizations who try to convince you to purchase gift cards as a means of payment or as a way to resolve a supposed problem or emergency.
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.
Zero-Value Gift Card Scams
Scammers tamper with packaging, or use fake websites to sell used gift cards or drain funds on gift cards that consumers legitimately purchased in-store or online.
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.
‘Free’ Gift Card Giveaway Scams
Scammers pose as popular brands or retailers claiming to be giving away free gift cards in an attempt to steal sensitive information. Once they have your information, they will sell it on the dark web or use it to carry out other crimes.
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.
Gift Cards are Always a Gift, Never a Form of Payment!
Real Utility Companies Don’t Request Gift Cards
Your Boss Won’t Ask You For Gift Cards
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