Beware of Gift Card Scams

Everyone loves a gift card for their favorite retailer or restaurant. It's like getting money to spend in any way you please! Unfortunately, scammers also love gift cards, but for all the wrong reasons: They often use gift cards to pull off scams. Here's what you need to know about gift card scams and how to avoid them.

How the Scams Play Out

Scammers will say anything to get you to buy gift cards and then hand over the card number and PIN codes. Here are some common tactics scammers use in gift card scams:

1. Scammers will say it's urgent. They will say to pay them right away or something terrible will happen. They don't want you to have time to think about what they're saying or talk to someone you trust. Slow down and don't pay. It's a scam.
2. Scammers will tell you which gift card to buy (and where). They will tell you to get a specific gift card, like a Google Play or Apple gift card and send you to Walmart, Target, CVS, or Walgreens. Sometimes, they'll tell you to buy cards at several stores so that cashiers won't get suspicious. The scammer might also stay on the phone while you go to the store and load money onto the card. If this happens to you, hang up. 
3. Scammers will ask you for the gift card number and PIN. The card number and PIN on the back of the card let the scammer get the money you loaded onto the card — even if you still have the card itself. Please don't give them those numbers or send them a photo of the card. It's a scam.

Common Gift Card Scams

Scammers are clever and will tell you various stories to convince you to buy gift cards. Here are some common scams:

• The IRS gift card scam. In this scam, a target receives a threatening message that's allegedly from the IRS and claims they are at risk of arrest for tax evasion if they do not pay up immediately. However, they insist that payment can only be made through a gift card. Often, the scammer will ask specifically for an iTunes gift card.
• The tech support gift card scam. In this variation, a caller pretends to represent tech support at a recognized company, like Apple or Microsoft. They'll insist something is wrong with the victim's computer and offer to "assist" in fixing the problem. 
• The romance gift card scam. A new dating partner found through a dating website asks for money in the form of a gift card to help them out of a sticky situation. 
• The sweepstakes gift card scam. Congratulations — you've won a trip to the Cayman Islands! But first, you have to pay the small processing fee via a gift card. No honest business or agency will ever make you buy a gift card to pay them for a prize.
• The utility gift card scam. You don't want your gas or electricity cut off, do you? Scammers will threaten to cut off your service if you don't immediately pay with a gift card.
• The Check Exchange Scam. A scammer will send you a check for more than you expected. They'll tell you to deposit the check and give them the difference on a gift card. 

In general, gift cards should be used for purchases or to send as gifts, not as payments. Also, as with all sensitive information, the numbers on your gift card should never be shared over the phone or online. Finally, it's best to purchase gift cards through reputable sellers.

If You've Fallen Victim to a Gift Card Scam

If you've paid a scammer with a gift card or shared your gift card information after being taken by any of the above ruses or similar schemes, take immediate steps to mitigate the damage. 

First, contact the company that issued the card as soon as possible. You can find the customer service number for most companies on the card itself or through a simple Google search. Tell the representative what happened. If you still have them, hold on to the receipt and the actual card for proof, should it be required. 

Next, if the scammer continues to contact you by phone, text message, or email, do not engage further. Block the scammer's number from your mobile device and mark their emails as spam. 

Finally, report the incident to the FTC and alert your family and friends about the scam.