Gift Card Hoax: Spotting and Avoiding These Payment Scams

Gift cards are a popular and convenient gift, but they’ve also become a favorite tool for scammers. If someone is pressuring you to pay with a gift card, especially from well-known brands like Google Play, Apple, or Amazon, alarm bells should be ringing. It’s almost certainly a Gift Card Hoax. Legitimate businesses and government agencies will never demand payment via gift cards. Understanding how these scams work is crucial to protecting your money.

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How Gift Card Scams Operate

Gift card scams typically begin with unsolicited contact – a phone call, text message, email, or even a social media message. Scammers are masters of manipulation and will craft elaborate stories to convince you to purchase gift cards and then hand over the crucial card numbers and PIN codes. Here are the common tactics they employ to execute a gift card hoax:

Creating a False Sense of Urgency: Scammers thrive on pressure. They will insist on immediate payment, often claiming dire consequences if you don’t comply right away. They aim to rush you, preventing you from thinking clearly or consulting with trusted individuals. This tactic is a major red flag. Legitimate requests for payment rarely, if ever, demand instant action via gift cards. Remember: Urgency is a scammer’s best friend. Slow down, and don’t pay.
Specifying Gift Card Type and Purchase Location: Scammers are often very specific about the type of gift card they want – popular brands like eBay, Google Play, Target, Apple, or Amazon are common choices. They may even direct you to purchase these cards from specific retailers, often large chains like Walmart, Target, CVS, or Walgreens. In some cases, to avoid raising suspicion with cashiers, they might instruct you to buy smaller denominations at multiple stores. Alarmingly, some scammers will even stay on the phone with you while you go to the store and load money onto the card, further pressuring you and ensuring you follow through. If anyone dictates where and what type of gift card to buy, hang up immediately. It’s a gift card hoax.
Demanding Gift Card Numbers and PINs: The ultimate goal of a gift card hoax is to obtain the gift card number and PIN. These numbers, usually located on the back of the card, are the keys to accessing the funds you load onto the card. Once a scammer has this information, they can drain the card’s value instantly, even if you physically retain the gift card. They might ask you to read the numbers over the phone, type them into a website, or even send a photo of the card. Never provide these details to anyone you don’t know and trust, especially if they contacted you unexpectedly and requested payment via gift card. Protect your PIN and card number – it’s as good as cash for scammers.

Common Scenarios in Gift Card Hoaxes

Scammers are incredibly adaptable and constantly invent new stories to trick victims into buying gift cards. Here are some prevalent gift card hoax scenarios to be aware of:

IRS or Government Impersonation Scams: Scammers posing as IRS agents or government officials claim you owe back taxes or fines. They threaten arrest or legal action if you don’t pay immediately using gift cards. The IRS and legitimate government agencies will never demand payment with gift cards.
Tech Support Scams: You might receive a call or pop-up message claiming your computer has a virus or security issue. Scammers posing as tech support professionals will offer to fix the problem, but demand payment in gift cards for their “services.” Reputable tech support companies will not ask for gift card payments.
Romance Scams: In online dating or social media contexts, scammers build fake relationships to gain trust. Eventually, they will fabricate emergencies or financial hardships and ask for gift cards to help them out. Never send gift cards to someone you’ve only met online, especially in a romantic context.
Lottery or Prize Scams: Scammers might claim you’ve won a lottery or prize but need to pay fees or taxes via gift cards to claim your winnings. Legitimate lotteries and prize giveaways do not require winners to pay fees with gift cards.
Emergency Scams: Scammers may impersonate family members or friends in distress, claiming they need urgent financial help and requesting gift cards. Always verify such requests through a known contact method before sending any money or gift cards.
Utility Bill Scams: Scammers pretending to be from utility companies threaten to shut off your power or water unless you immediately pay your “overdue bill” with gift cards. Utility companies usually have established procedures for overdue payments and do not demand gift cards.

What To Do If You Fell Victim to a Gift Card Hoax

If you purchased gift cards and shared the numbers with someone you now suspect was a scammer, immediate action is crucial. Here’s what you should do:

Report to the Gift Card Company Immediately: Contact the gift card issuer as soon as possible. Even if you think it’s been a while, reporting is still important. Use the contact list provided below to find the correct company.
Request a Refund: Inquire about the possibility of getting your money back. Some gift card companies are taking steps to combat gift card fraud and may offer refunds in certain situations. It’s worth asking.
File a Report with the FTC: Report the scam to the Federal Trade Commission at ReportFraud.ftc.gov. Every report contributes to the fight against fraud and helps law enforcement track and stop scammers.

How To Contact Gift Card Companies

Here’s a list of contact information for major gift card companies to report scams:

Amazon

Call 1 (888) 280-4331 and follow Amazon’s instructions.
Keep a copy of the Amazon gift card or your store receipt.
Visit Amazon’s website to learn about scams.

American Express

Call 1 (877) 297-4438 and follow American Express’s instructions.
Keep a copy of the American Express gift card or your store receipt.
Visit American Express’s website to learn about scams.

Apple, iTunes

Call 1 (800) 275-2273. Say “gift card” to connect with a live representative. Follow Apple’s instructions.
Ask if the money is still on the Apple or iTunes gift card. If so, Apple can put a freeze on it. Ask for your money back.
Keep a copy of the Apple or iTunes gift card or your store receipt.
Visit Apple’s website to learn about scams.

Best Buy

Call 1 (888) 237-8289 and follow Best Buy’s instructions.
Keep a copy of the Best Buy gift card or your store receipt.
Visit Best Buy’s website to learn about scams.

eBay

Chat with eBay customer support, or have a representative call you back.
Keep a copy of the eBay gift card or your store receipt.
Visit eBay’s website to learn about scams.

Google Play

MoneyPak

Submit a fraud claim to MoneyPak.
Keep a copy of the MoneyPak card or your store receipt.
Visit MoneyPak’s website to learn about scams.

ReloadIt

Call 1 (888) 633-9434 and follow ReloadIt’s instructions.
Keep a copy of the ReloadIt card or your store receipt.
Visit ReloadIt’s website to learn about scams.

Sephora

Call 1 (877) 737-4672 and follow Sephora’s instructions.
Keep a copy of the Sephora gift card or your store receipt.
Visit Sephora’s website to learn about scams.

Steam

Report the gift card scam to Steam through Steam Support.
Keep a copy of the Steam gift card or your store receipt.
Visit Steam’s website to learn about scams.

Target

Call 1 (800) 544-2943 and follow Target’s instructions.
Keep a copy of the Target gift card or your store receipt.
Visit Target’s website to learn about scams.

Vanilla

Call 1 (833) 322-6760 and follow Vanilla’s instructions.
Keep a copy of the Vanilla card or your store receipt.

Visa

Call 1 (800) 847-2911 and follow Visa’s instructions.
Keep a copy of the Visa gift card or your store receipt.
Visit Visa’s website to learn about scams.

Walmart

Call 1 (888) 537-5503 and follow Walmart’s instructions.
Keep a copy of the Walmart gift card or your store receipt.
Visit Walmart’s website to learn about scams.

If you don’t see your gift card brand listed, check the card itself for contact information or search online for the issuer’s contact details. If you can’t find contact information, or the issuer is unresponsive, report the scam to the FTC.

Best Practices for Buying and Using Gift Cards

Remember, gift cards are designed for gifts, not for payments to businesses or other entities. Never purchase a gift card to pay someone who instructs you to do so and demands the card numbers. Follow these best practices when buying and using gift cards:

Buy from Reputable Sources: Stick to well-known and trusted stores when purchasing gift cards. Avoid buying from online auction sites or unfamiliar websites, as these cards may be counterfeit or stolen.
Inspect the Card Before Purchase: Carefully examine the gift card before buying it. Ensure the protective stickers are intact and haven’t been tampered with. Check that the PIN number on the back is securely covered. If you notice any signs of tampering, choose a different card and inform a cashier or manager about the potentially compromised card.
Keep Records: Always retain a copy of the gift card (take a photo is helpful) and your store receipt. This documentation is essential for reporting fraud to the gift card company and law enforcement if necessary. The card number and receipt details will be vital when you report a gift card scam.

By staying informed and vigilant, you can protect yourself from falling victim to a gift card hoax and ensure that gift cards remain a safe and enjoyable way to give gifts.