Gift Card Scams 101: Protecting Your Money From Fraudsters
Did you know roughly 25% of all fraud complaints filed with the FTC in 2024 were related to gift card fraud? Gift cards are convenient and easy to use… for the everyday consumer and for scammers to get ahold of your money. Understanding how fraudsters trick people into handing over their money is the first step in keeping your finances safe.
How Gift Card Scams Work
It starts with a call, text, email, social media message, or any other easy form of communication. The scammer on the other side will say anything to get you to purchase gift cards for merchants like Amazon, Google Play, Apple, etc. After you purchase them, the scammer will ask for the card number and PIN codes. Now, they can utilize the gift cards and steal your money.
Common Gift Card Scams
Impersonation Scams
Scammers will say they are from a government agency, such as the IRS, the Social Security Administration, or the FTC. The scammer will say you owe taxes or need to pay a fine and demand immediate payment. According to the Federal Trade Commission, government agencies will not contact you to demand immediate payment, and they will never demand payment via gift card.
Tech Support Scams
Sometimes scammers pose as reputable tech support companies and claim your computer is broken or has a virus. They will ask for remote access. Do not give them access to your computer. This is a scam. If your computer is broken or has a virus, you will have to contact your local tech support to get it fixed and they will ask for regular payment methods.
Fake Family Emergency Scam
To gain your trust, a scammer will pose as a family member and claim they are facing a crisis, like a medical emergency or travel trouble. They will ask for your help and request gift cards to solve this so-called emergency.
Prize & Sweepstakes Scams
You won! That’s how a scammer hooks you, because who doesn’t want to be a winner? With this scam, they will ask you to pay upfront “fees” with a gift card to receive your prize. The first question to ask yourself is “Did you even enter to win this prize?” and “Why would any honest company ask you to pay for a portion of your ‘prize’?”
Online Marketplace Scams
On resale platforms like Marketplace, many scammers try to pay with gift cards. After you ship the item, you will quickly realize that the gift card has already been drained or expired. Another way scammers operate gift card scams on Marketplace is by offering $100 valued cards for $50. They will claim they no longer visit the store and do not need them. This enticing discount will push cash into the scammer’s hands. Then, you will find out later that the cards have no balance remaining.
Red Flags To Watch For
Recognizing the warning signs of a gift card scam is one of the most effective ways to protect yourself from fraud. Scammers rely on urgency, fear, and secrecy to pressure victims into acting quickly, so knowing what to look for can stop a scam before it starts.
- Anyone asking for payment with gift cards. Legitimate companies, government agencies, and utility providers will never request gift card payments.
- High‑pressure or threatening language. Scammers often say things like “act now,” “your account will be closed,” or “you’ll be arrested” to create panic.
- Requests to stay on the phone while you buy gift cards. This tactic keeps you from talking to someone who might warn you.
- Instructions to scratch off and read the numbers on the back. Sharing the code gives scammers instant access to your money.
- Demands for secrecy. Phrases like “don’t tell anyone” or “keep this private” are major red flags of gift card fraud.
Spotting these signs early is key to avoiding gift card scams and keeping your money safe.
When something feels off, trust your instincts – pause to double-check and verify suspicious requests. This can make all the difference.