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Don’t Fall for It: Spotting and Avoiding Gift Card Scams

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Gift cards are a popular and convenient gift, but unfortunately, they’ve also become a favorite tool for scammers. If anyone ever demands payment via gift cards – especially brands like Google Play, Apple, or Amazon – alarm bells should be ringing. Legitimate businesses and government agencies will never ask you to pay using gift cards. This demand is a surefire sign of a scam.

The Federal Trade Commission (FTC) emphasizes that any urgent demand to transfer money, especially through unconventional methods like gift cards or cryptocurrency, is a major red flag. No government body will pressure you to protect your funds in this way.

Learn more about recognizing scams

How Gift Card Scammers Operate

Gift Card Scams usually begin with an unsolicited contact – a phone call, text message, email, or social media message. Scammers are masters of manipulation and will use various stories to trick you into purchasing gift cards and giving them the card details, including the number and PIN. Understanding their tactics is key to protecting yourself. Here’s a breakdown of common scammer strategies:

  1. Creating a 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 might say your account will be frozen, you’ll be arrested, or some other terrible event will occur. This tactic is designed to prevent you from thinking clearly or consulting with trusted individuals. Remember, legitimate requests for payment rarely involve such extreme urgency. Slow down, take a breath, and never rush into payment. If it feels urgent and demands gift cards, it’s almost certainly a scam.

  2. Brand and Location Instructions: Scammers are specific about the type of gift card they want and where to buy it. They frequently request gift cards from well-known brands like eBay, Google Play, Target, or Apple. They may even direct you to purchase these cards from specific stores, commonly mentioning Walmart, Target, CVS, or Walgreens. In some cases, to avoid raising suspicion with cashiers, they might instruct you to buy smaller denominations of cards from multiple stores. Alarmingly, some scammers will even stay on the phone with you while you go to the store and load money onto the gift cards, pressuring you throughout the process. If someone is dictating where to buy specific gift cards and staying on the line with you, hang up immediately. This is a major red flag.

  3. Demanding Card Numbers and PINs: The ultimate goal of the scammer is to obtain the gift card number and PIN. These details, usually found on the back of the card, are essentially cash. Once a scammer has this information, they can quickly drain the funds, even if you still physically possess the gift card. Never, under any circumstances, give out the gift card number and PIN to someone you don’t know or trust, especially over the phone, email, or text. Similarly, avoid sending photos of the back of your gift cards. This information is as sensitive as your bank account details. Protect it carefully.

Recognizing Common Gift Card Scam Scenarios

Scammers are constantly inventing new stories, but many gift card scams fall into recurring patterns. Being familiar with these common scenarios can help you identify and avoid them:

  • IRS or Government Impersonation Scams: Scammers often pretend to be from the IRS or another government agency, claiming you owe back taxes or fines. They threaten arrest or legal action if you don’t pay immediately using gift cards. Remember, government agencies will never demand payment via gift cards. Legitimate communication from these bodies will typically be through mail and offer various payment options.

  • Tech Support Scams: In this scam, you might receive a call or pop-up message claiming your computer has a virus or security issue. The “tech support” scammer will then request payment in gift cards to fix the non-existent problem. Real tech support companies will not demand gift card payments.

  • Romance Scams: Scammers operating romance scams build online relationships with victims, gaining their trust over time. Eventually, they’ll fabricate a financial emergency and ask for help, often requesting gift cards as payment. Never send gift cards to someone you’ve only met online, especially if they claim to need them for urgent financial needs.

  • Utility Company Scams: Scammers impersonating utility companies may call or email, threatening to shut off your power or water unless you immediately pay your “overdue bill” with gift cards. Legitimate utility companies have established procedures for late payments and will not demand gift card payments to avoid service disruption. Always verify any such claims directly with your utility provider through their official channels.

  • Grandparent Scams: These emotionally manipulative scams target grandparents, with scammers pretending to be a grandchild in trouble. They might claim to be in an accident, need bail money, or face another emergency, and request gift card assistance. If you receive such a call, verify the situation directly with your grandchild or another family member before sending any money, especially gift cards.

What To Do Immediately If You Paid a Scammer with a Gift Card

If you realize you’ve been scammed and paid with gift cards, immediate action is crucial. Here’s what you need to do:

  • Report to the Gift Card Company Right Away: Contact the gift card company immediately, regardless of how long ago the scam occurred. Use the contact list provided below to find the appropriate number or website. Provide them with all the details, including the gift card number and any transaction information.

  • Request a Refund: Inquire about the possibility of getting your money back. Some gift card companies are taking steps to combat scams and may be able to freeze the funds or offer a refund, especially if you act quickly. It’s always worth asking.

  • File a Report with the FTC: Report the scam to the Federal Trade Commission at ReportFraud.ftc.gov. Every report helps the FTC track scams and take action against fraudsters. Your report can make a difference in protecting others.


A video thumbnail encouraging viewers to report gift card scams to the FTC.

Contact Information for Major Gift Card Companies

To report gift card scams directly to the issuing company and inquire about potential refunds, use the following contact information:

Amazon

American Express

Apple, iTunes

  • Call: 1 (800) 275-2273 (Say “gift card” to connect with a representative)
  • Website for scam information: Apple Gift Card Scams

Best Buy

eBay

Google Play – Contact information not directly provided in original text – needs to be researched and added for comprehensiveness – [Research needed: Google Play gift card scam reporting contact]

MoneyPak

ReloadIt

Sephora

Steam

Target

Vanilla

  • Call: 1 (833) 322-6760

Visa

Walmart

If your gift card company isn’t listed, check the card itself for contact details or search online for “[Gift Card Brand] gift card scam report”. If you can’t find contact information or the company is unresponsive, report the scam to the FTC.

Staying Safe: Best Practices for Gift Card Use

Remember the golden rule: Gift cards are for gifts, not payments. Treat them like cash and never use them to pay someone you don’t know or trust, especially if they demand this payment method. Follow these guidelines to minimize your risk when buying and using gift cards:

  • Buy from Reputable Sources: Purchase gift cards directly from trusted stores or the official brand website. Avoid buying from online auction sites or third-party vendors, as these cards may be counterfeit or stolen.

  • Inspect Before Purchase: Carefully examine the gift card before buying it. Ensure the protective scratch-off covering the PIN is intact and hasn’t been tampered with. Check for any signs of damage or alteration. If anything looks suspicious, choose a different card and alert a cashier or manager.

  • Keep Records: Always retain a copy of the gift card (photograph the front and back) and your store receipt. This documentation is crucial for reporting fraud to the gift card company and law enforcement if necessary. Store these records securely.

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

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