4 Common Gift Card Scams: Experts Share Warning Signs + Tips To Keep Your Money Safe
Be on the lookout for these popular gift card scams designed to steal your money and information
If you received a gift card during the holidays and can’t wait to use it, be aware—scammers are still on the prowl. Many scams exist to target consumers looking to buy gift cards, use new cards or even check the balance on cards they already have. But unlike a credit card, once the money is drained from a gift card by a scammer, it can be very difficult to track! To stay safe, keep reading to learn more about the most common gift card fraud, how the scams work, plus tips on how to protect yourself.
Common gift card scams
1. Gift card payment scams
One of the most common scams involving gift cards is when a bad actor is expecting payment via a gift card rather than a credit card. “By the time you realize you’ve been scammed, your money is gone and nearly impossible to recover,” shares Amy Bunn, online safety advocate for McAfee (a computer security company). “This type of scammer lurks in online marketplaces and local buy-sell groups— – some even pose as dog breeders who take gift cards as advance payment.”
In other cases, the scammer will demand you pay them via gift card because it’s an “urgent matter.” This may be because the thief claims to be from a government agency, tech support, or your utility company, according to the Federal Trade Commission (FTC). In September, the Better Business Bureau even warned of a scam in which people were posing as a manager or CEO to get employees to buy thousands of dollars worth of gift cards.
“Scammers often try to intimidate you by posing as government officials,” adds Bunn. “If someone is threatening you and demanding payment for fines and back taxes with gift cards it’s a sure sign of a scam.”
2. Fake e-gift card offers
In some cases, you won’t be asked to buy a gift card, but will actually be sent what appears to be an e-gift card. At the start of the new year, experts were warning people about a new scam, which involves an e-card being sent over WhatsApp with a “Happy New Year” message.
“Don’t respond to an unsolicited email or text message offering you a gift card, as it’s often a way to track your online activity,” says Darius Kingsley, head of consumer business practices at JPMorgan Chase & Co. Once you click on the link, hackers can use APK files (unauthorized applications) to control your device. This means they can steal information, monitor activity, access financial accounts and more.
3. Phony balance-checking sites
If it’s been a while since you’ve used a gift card or you can’t remember how much money is on it, you may need to check the balance. Unfortunately, some scam artists have created fake balance-checking websites for their own personal gain.
“They offer to check the balance on gift cards, but they are actually phishing sites,” says Bunn. “Entering card info gives scammers everything they need to steal the card balance.”
4. Drained gift card scams
Some individuals have learned the disappointing news that their gift card has been tampered with when they go to use it for a purchase. How it happens: Criminals take gift cards off the racks in stores, copy down the gift card numbers and security codes, and then put the cards back. Then when a customer purchases the compromised gift card, the scammer drains the value, often using computer programs.
“As soon as they become active, those bots are draining the funds on those accounts,” Detective Jerry Minton in Plano, Texas told NBC 5 DFW in May.
How to stay safe from gift card scams
Though scams involving gift cards can involve many tactics, there are steps you can take to protect yourself from becoming a victim.
- Be cautious with e-gift cards. “Be wary of emails or texts claiming you’ve been sent a gift card from a family member or friend—this is a tried-and-true phishing technique,” advises Bunn. “Verify the sender before clicking on any links.”
- Buy from trusted retailers. “Be cautious about buying gift cards, particularly from third-party sites,” says Kingsley. “Scammers will pre-save card details or sell expired cards.” Instead, buy directly from the business.
- Use legitimate balance-checking sites. Go to a retailer’s official website or app when you need to find out how much money is on a card.
- Inspect the cards when buying. When purchasing a gift card in a store, you’ll want to be sure it hasn’t been drained. Ensure protective stickers are still securely attached to the card, and confirm that the card numbers and PIN on the back aren’t showing. It’s also wise to keep the receipt and take a photocopy of the gift card should you need to report fraud.
- Treat gift cards like cash. “Register the card and change your PIN if the brand offers that as an option,” suggests Bunn.
What to do if you’re a victim of a gift card scam
If you suspect you’ve been scammed, here’s what you should do:
- Report It: Notify the retailer immediately. While recovery isn’t guaranteed, they may be able to help if the card hasn’t been used yet.
- Alert Authorities: File a report with the FTC or your local law enforcement.
- Share Your Experience: Reporting the scam could help others avoid falling victim.
“Even if you can’t recover your money, your report could assist in shutting down scammers,” adds Bunn.
The Bottom Line
Gift cards are convenient and thoughtful gifts, but they’re also an easy target for scams. By staying informed and cautious, you can protect your money and personal information. Remember, if something feels off—like being asked to pay with a gift card or receiving an unsolicited e-gift—trust your instincts and don’t engage.
Have you ever encountered a gift card scam? Share your story in the comments below to help spread awareness!
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