Beware of Gift Card Scams

Gift cards are a popular and convenient way to give presents, but unfortunately, they’re also a favorite tool for scammers. Understanding the tactics these fraudsters use can help you avoid falling victim to their schemes. Here are some common gift card-related scams and tips to protect yourself:

1. The "Payment by Gift Card" Scam

Scammers often pose as government officials, utility companies, or tech support representatives and demand payment via gift cards. They might claim you owe taxes, your electricity will be shut off, or your computer is compromised. Once you purchase the gift cards and share the codes, the scammer quickly uses the funds, making recovery almost impossible.

How to Avoid:

• Know that legitimate organizations will never request payment through gift cards.

• If someone insists on this form of payment, it’s a red flag. Hang up or stop communicating immediately.

2. Online Marketplace Scams

Fraudsters often use online marketplaces to sell stolen or fake gift cards. These cards may have already been drained of funds or never activated properly. They lure buyers with discounted prices, but the savings come at a high cost when the card doesn’t work.

How to Avoid:

• Only buy gift cards from trusted retailers or directly from the issuing company.

• Be wary of deals that seem too good to be true.

3. Card Tampering

Scammers tamper with physical gift cards in stores by scratching off the PIN cover or recording the card numbers. Once the card is activated at checkout, they use the funds online before the legitimate purchaser can.

How to Avoid:

• Inspect gift cards before purchasing to ensure they haven’t been tampered with.

• Choose cards from the middle or back of the display, as these are less likely to have been compromised.

4. Phishing Emails and Texts

You might receive an email or text claiming you’ve won a gift card or been selected for a special offer. These messages often include links that lead to fake websites designed to steal your personal information or payment details.

How to Avoid:

• Don’t click on links in unsolicited emails or texts.

• Verify the legitimacy of the sender by contacting the company directly using their official website or phone number.

5. Fake Charity Appeals

Scammers exploit generosity during the holiday season by pretending to represent charities. They might ask for donations in the form of gift cards, claiming it’s the most convenient method.

How to Avoid:

• Research charities before donating.

• Donate directly through the charity’s official website or trusted platforms.

6. Overpayment Scams

In this scam, fraudsters pose as buyers on platforms like Craigslist or Facebook Marketplace. They send a check for more than the agreed amount and ask you to "refund" the difference using a gift card. The check eventually bounces, leaving you out of pocket.

How to Avoid:

• Never accept overpayments or agree to send money back via gift cards.

• Only conduct transactions with trusted buyers and sellers.

Tips to Protect Yourself from Gift Card Scams

• Treat gift cards like cash—once they’re gone, they’re difficult to recover.

• Keep the receipt and card packaging as proof of purchase.

• Report scams to the Federal Trade Commission (FTC) and the gift card issuer as soon as possible.

Gift card scams are a growing concern, but awareness and vigilance can help you avoid becoming a victim. Always question unusual payment requests and verify the legitimacy of the situation before parting with your money. By staying informed, you can enjoy the convenience of gift cards without the risk of falling prey to scams.