Buying Gift Cards

Image of FTC Warning on Gift Cards for Payment

Fraudsters will often ask for gift cards as a way to scam your money.  They like gift cards because they’re harder to trace, keep their identity a secret, and disputing them is harder.  Most scams start by trying to contact you by email, phone, text, or social media.  Fraudsters will spin all sorts of stories to convince you to buy gift cards for them.  They’ll claim to be:

  • The IRS, Social Security Administration, or the police.  They’ll say you have to pay taxes or fine or you may be arrested or penalized.
  • Microsoft or Apple tech support.  They’ll ask for access to your computer remotely and then require a gift card to pay for their services.
  • A Friend, family, or lover needing money now.  They may use AI to copy the voice of someone you know, or they’ll become your lover or friend online to gain your trust.  They need gift cards to pay for an emergency right now.
  • A Real or fake sweepstakes company saying you’ve won a prize.  Before they send you the money, they need you to pay fees, taxes, or other charges with a gift card.
  • A business you’re “working” for, such as a mystery shopper.  They’ll give you a check, tell you to deposit it, and give them any released funds on a gift card; you get to keep the rest as “payment.”  However, the check is fake.

In every case, the fraudsters will make it urgent so that you’ll act quickly without questioning them.  Once they convince you, they’ll tell you which gift cards to buy.  Often, they’ll want specific gift cards (Walmart, Amazon, Target, etc.) and/or have you buy them from several stores so as to not raise suspicion.  After you buy them, they’ll ask you for the card numbers and PINs.  They can then withdraw the money however they want, even though they don’t have the physical card.

Protecting Yourself

Follow these guidelines to prevent yourself from being scammed:

  • Gift cards are meant as gifts, not payments!  If someone asks you to pay for something using gift cards, don’t do it.  Real companies would never ask you to pay them with gift cards. Friends or family would need more than gift cards in an emergency.
  • Refuse to give someone the gift card number and PIN.  They’re trying to withdraw the money loaded on the gift card without needing the physical card itself.
  • Keep a copy of the gift card (take a picture of it) and store receipt in case you need to dispute any charges.
  • If they push you to get gift cards or refuse to answer any of your questions, refuse and cutoff all contact with them.

If You Become a Victim

If you believe you’ve been scammed and sent gift cards to a fraudster:

  1. File a dispute with the gift card company at once.  Click this link to be taken to the FTC’s list of the most commonly used companies and how to contact them.  Be prepared to provide information on how you loaded the gift card, purchases, and why.  Depending on the company and their policies, they may cancel the gift cards and issue you new ones.
  2. File a complaint with the local police and FTC.
  3. Report the fraud at the bank or credit union to dispute any transactions that loaded the gift cards.

For more information, watch this video from the FTC: