Have you ever received a request from an alleged loved one, government official, tech support representative, your boss, or even your financial institution to purchase gift cards to go towards fees, help in an emergency, or protect your accounts? If so, you received a fraudulent request.
Gift card scams are prevalent and a favorite among fraudsters as gift cards are guaranteed funds that are difficult to trace or recover. Scammers use stolen gift cards for purchases, to resell, or to convert funds into cryptocurrency for money laundering purposes. Depending on the scam will determine the reason behind the request, but they all follow the same formula. Fraudsters will try to convince you that they are someone they are not and have you purchase gift cards to pay for “services” such as pretending to fix or unlock your computer or pay fees to “protect” your financial accounts. Romance scammers will pretend to be in a financial emergency that requires help from their target or need gift cards to make that promised visit that will never happen. Scammers may also try to entice you with discounted gift card deals on Craigslist or Facebook Marketplace that are either fraudulent or used to steal sensitive personal information from you. Gift cards should only be purchased for gifts and never as a form of payment or “gifts” to people you have never met in person.
Not all gift card scams take place from actively engaging a scammer, but from purchasing cards as legitimate gifts. Scammers also tamper with physical cards found in stores by placing a barcode sticker over the legitimate barcode or by scratching/peeling off the silver sticker containing the PIN or activation number before replacing it with another silver sticker. When the card is scanned at the counter, the number attached to the barcode sticker held by the fraudster will be activated as opposed to the physical card purchased. If the silver sticker has been tampered with, the physical card will be activated, but the funds will be compromised almost immediately before the card can be used. Tampered gift cards are a rising problem that often involves international criminal organizations.
To protect yourself from gift card scams, take the following precautions:
- never follow through with a request to pay in gift cards
- inspect the physical card before purchasing for scuffs, tears, unusual stickers, or any other indication of tampering
- request and hold onto a receipt - compare the number on the receipt with the card purchased
- never download any third-party gift card balance checkers
- avoid purchasing from unverified third-party sellers with deals that are too good to be true
- report the scammer immediately
Gift cards are for gifts and never for payments.