What Is Gift Card Scam? Signs, Tactics & Prevention Tips

Is paying with gift cards really safe? Discover the newest gift card scams and why fraudsters are so eager to get their hands on them.

Gift cards are an easy and convenient method to purchase apps, games, books, or films from multiple app stores. Firms sell them for convenience, but unfortunately, that is precisely why they are attractive to scammers as well. They easily dupe people into paying with gift cards for various scams.

The fact is that  Gift cards should be used only with the company for which they were issued. They can’t be used to pay bills, taxes, fines, or purchase other goods and services. If someone tries to get you to pay them with a gift card or to give them the card number and code, it’s certainly a scam.

In this article, we will guide you through gift card scams, how to identify them, and tips on avoiding getting scammed.

What is a Gift Card Scam?

A gift card scam occurs when a person makes you purchase a gift card and then requests that you give them the card number and PIN. When they have that information, they can access the funds immediately, like cash. Scammers prefer gift cards because they’re easy to purchase, difficult to track, and almost impossible to get back after spending.

They usually strike individuals via phone, email, or forged messages from a person or company they trust. Victims are typically informed they owe money, must pay a fee, or need to send an urgent gift card to rectify an issue.

Although scammers target various kinds of cards, such as Amazon, Apple, Google Play, Steam, or prepaid Visa cards, the scam itself often remains the same: pressure, urgency, and a request to provide the gift card information.

How Do They Work?

Gift card scams typically follow a script, and they often begin with someone impersonating someone or some organization that you trust. It might be someone saying they’re calling from your bank, a big company such as Amazon, your utility company, or even your employer. They attempt to sound authentic so you won’t doubt them.

After grabbing your attention, they rapidly establish a sense of urgency. They may tell you there’s an issue with your account, a bill you haven’t paid, or even that you’ve already been scammed. Sometimes, they reverse the script and tell you that you’ve won something great, but first, you have to “pay a fee” using gift cards.

Then they’ll instruct you to go buy particular gift cards, such as Apple, Amazon, Google Play, or Target gift cards. They usually have you on the line while you purchase them and inform you exactly what to purchase. After you’ve purchased the cards, they’ll have you read out the numbers and PINs from the back. The moment you do, your money’s gone—immediately.

The fact is that no legitimate company or government agency will ever request payment by gift card. If anyone asks you to pay by this method, it’s always a scam. The best action is to hang up, delete the message, and never give your card information to anyone.

Types Of Gift Card Scams

Gift card scams can take numerous forms, but the end result is always the same: getting you to transfer the money to the scammer through a gift card. These are some of the most prevalent forms of gift card scams:

1. Impersonation Scams

This occurs when someone impersonates a person you trust, such as your employer, a family member, or a business. They may call you or send you an email requesting you to purchase gift cards quickly, usually saying it’s for a surprise or an emergency. It has a personal touch, but it’s not genuine.

2. Tech Support Scams

You may receive a call or message informing you there’s an issue with your computer or account. The scammer will claim to be representing tech support and that you’re going to have to pay for assistance through gift cards. Genuine tech support will never request gift cards.

3. Prize or Lottery Scams

You’re informed you’ve won an award, but in order to receive it, you have to pay some “fees” in the form of gift cards. In reality, if you ever actually win something, you shouldn’t have to pay for it. This is a scam.

4. Romance Scams

Scammers feign getting to know you on the internet. They gain your confidence and then solicit assistance, usually claiming to be in a jam and needing gift cards. They’ll even fabricate pitiful stories to try to get your sympathy.

5. Fake Bill or Threat Scams

You receive a notice claiming you owe money, perhaps for taxes, electricity, or even law enforcement. The scammer urges you to move quickly and informs you that payment through gift cards or face severe penalties is required. Don’t be intimidated—the real company doesn’t operate this way.

6. Online Marketplace Scams

You may attempt to sell or purchase something on the Internet, and the individual requests payment or a refund in the form of gift cards. After they obtain the card information, they vanish.

How to Identify a Gift Card Scam: Warning Signs

Gift card scams are subtle, but there are a few unmistakable warning signs to be on the lookout for. If you know what to recognize, it’s much simpler to guard yourself.

1. They Ask You to Pay with a Gift Card

This is the largest red flag. No legitimate business, government agency, or tech support will ever request that you pay with a gift card. If a person informs you that you have to pay for a bill, fee, or service with a gift card, it’s not real.

2. There’s a Sense of Urgency

Scammers will attempt to intimidate you or hurry you along. They’ll tell you things like:

• “Your account will be closed.”
• “You’ll get arrested.”
• “This offer will expire in minutes.”

They want you to panic and act rashly—without thinking.

3. You’re Told to Keep It a Secret

If you’re told that you can’t tell anyone, particularly when you’re purchasing the gift cards, that’s another red flag. They might say, for example, “Don’t tell the cashier—it’s a surprise,” or “This is confidential.” That’s a trick.

4. They Keep You on the Phone While You Purchase the Cards

Scammers will keep you on the phone as you head to the store, purchase the gift cards, and read them the numbers. They’ll walk you through the entire process, step by step. True companies never do this.

5. They Ask for the PINs and Card Numbers

As soon as you give them those numbers (typically located on the back of the card), the money is lost, and you’re not going to get it back. If anyone requests those figures, it’s surely a scam.

6. The Message or Call Sounds Suspicious

Scam messages suddenly appear out of nowhere. They may appear to be from your boss, a friend, or a company, but something is “different.” Listen to your instincts. If the tone appears strange or the request seems odd, it likely is.

In Short:

If they ask you to purchase gift cards and give them the codes, stop dead in your tracks. Double-check, take your time, and don’t hesitate to say no. If unsure, consult with a person you trust before proceeding.

How to Protect Yourself Against Gift Card Scammers

Gift cards are wonderful gifts when used properly, but they can be dangerous if scammers are involved. The best protection is to know what to look out for and take intelligent measures to shield yourself. Here’s what you can do:

1. Only use gift cards when you’re prepared to spend them. Don’t hold money on your cards for a very long time, since scammers may steal your card information and use it without your knowledge.
2. Activate your gift card with the store, if possible, and hold onto your receipt. This way, the company can retrieve your money if your card is stolen.
3. Verify gift cards prior to purchase. Do not purchase used gift cards and examine them for any impairment or indication that someone may have altered them. Scammers tend to log the numbers before you even use the card.
4. Be cautious with emails. Beware of messages that appear urgent, contain misspellings, or include links and attachments, particularly if they come from unfamiliar senders. These may be attempts at phishing.
5. Don’t believe in surprise calls. If anybody calls saying they’re from a company or bank, hang up. Call the company back using their registered number to verify. Scammers use texts and emails as well, so don’t respond to odd messages and block shady numbers. Flag scam emails as spam.

By being cautious and taking these steps, you can protect your gift cards—and your money—from scammers.

What to Do if You’ve Been Gift Card Scammed

If you find you’ve been duped by a gift card scam, don’t worry. Here are some things you can do immediately:

• Stop Using the Cards

If you still have any gift cards with a balance on them, don’t spend them or share the codes.

• Contact the Store or Company

Get in touch with the place that issued the gift card (like Amazon or Target). Tell them what happened and see if they can help freeze or recover your balance.

• Report the Scam

Tell your local police, and also report the scam to consumer protection groups like the Federal Trade Commission (FTC) or your country’s equivalent. This helps stop scammers and protects others.

• Tell Your Bank or Credit Card Company

If you purchased the gift cards with your credit card or bank card, inform them. They can assist or guide you in the next step.

• Change Your Passwords and Check Accounts

If you’ve shared any personal details, immediately update your passwords. Check your online and bank accounts for any suspicious activity.

• Learn from It and Be Vigilant

Scammers are very smart, but being aware of what to avoid can keep you from getting scammed in the future. Tell your friends and family what happened so they can stay safe as well.

Conclusion

Gift card scams don’t discriminate, but by remaining aware and vigilant, you can defend yourself. Always be suspicious, listen to your intuition, and recall that if something seems fishy, it likely is. Remaining vigilant is your strongest defense against scammers.