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Beware of Gift Card Scams

Don’t get caught in a gift card scam! Here’s what to know about these scams and how to avoid falling victim.

How these scams play out

Gift card scams start with a phone call, email, text or social media message from someone claiming to be an authority. A scammer might pretend to represent the IRS and claim you owe back taxes or mimic a law enforcement agent telling you a family member is in trouble. They’ll insist you pay immediately using gift cards, then ask for the card’s number and PIN. As soon as the scammer has that, they’ll empty the card.

Red flags

Watch for these red flags, which can alert you to a possible scheme:

  • Demand for gift cards. If a contact insists you pay by gift card, it’s a scam.
  • Urgent threats. Scammers urge you to act immediately so you won’t have time to think.
  • Specific cards. If you’re told exactly which cards to buy and where to purchase, you’re likely looking at a scam.
  • Sharing codes. If someone asks for the number or PIN on the gift card, that’s a scam.
  • Impersonation. Scammers may pretend to be the IRS, a utility company or a panicked friend or family member.

How to avoid gift card scams

Here’s how to avoid falling victim to one of these schemes:

  • Stop and think. Legitimate businesses and government offices will never demand payment via gift card. If you’re asked to pay this way, pause to question the request.
  • Don’t share codes. Never give out your gift card number or PIN to an unverified contact.
  • Verify callers. If you’re not sure whether you’re dealing with a scammer, hang up and call the company or person yourself using a number you trust.
  • Buy cards safely. When purchasing gift cards, choose reputable sellers and inspect the cards carefully for signs of tampering.
  • Use secure payment. When possible, use a credit or debit card for payment, as these methods offer some protection.

If you’ve been scammed

If you’ve been targeted by a gift card scam, contact the gift card company immediately and report the fraud. Ask if the card can be frozen or refunded and keep any receipts or emails as proof. Next, report the scam to the FTC. Finally, notify your local police departments.