Understanding Gift Card Scams: How to Spot and Avoid Them
Gift cards are the most convenient and easy way to buy things on different online platforms. But because of the convenience, it becomes an easy target for the scammer to dupe people. In this article, we dive into the understanding of gift card scams, how to identify them, and the best possible way to avoid any of these scams. From phishing emails to fraudulent websites, we cover all the topics in this content piece. By reading the whole article, you can easily identify the red flags and protect your money from them. If you don’t want to fall into any of these traps, learn about gift card scams and empower yourself to outsmart the scammers and enjoy the benefits of a gift card without any worry.
What are gift card scams?
The scammers use a sneaky scheme to get people to buy the gift card from them and they get their card details and other information. This is commonly known as a gift card scam. The most common techniques used in this scam include phishing emails, fake websites, and phone calls pretending to be real companies. They mostly pretend to be official and offer discount prices on something so that people can buy their gift cards. Once the scammer gets the user’s card details, they immediately take all the money from it and leave the person pennyless. The gift cards are very anonymous and convenient; scammers get benefits from them and use them for illegal purposes. This is why people need to be more careful about gift cards and make sure that any request for a gift card is legit.
Types of gift card scams
We’ve put together a list of common gift card scams that scammers use to trick people. They often target victims by creating fear or emotional stress, causing them to make irrational decisions.
IRS Phone Call Scam
Scammers pretend to be IRS agents, court officials, or government representatives, claiming that victims owe money in unpaid taxes and must pay fines or penalties using gift cards.
Online Gift Card Hacking
Fraudsters hack into online gift card databases and use automated bots to steal card details, transferring funds to their accounts when victims attempt to use the cards.
Email Phishing Scams
Fraudsters send emails impersonating trusted individuals like professors or bosses, requesting victims to purchase gift cards and sending them the codes.
Open Store Rack Scam
Scammers jot down gift card codes displayed on open store racks, allowing them to redeem the cards before unsuspecting buyers can load them with funds.
Discounted Gift Card Scam
Cheaters sell fake gift cards at discounted rates online, enticing shoppers with apparent savings but providing cards with no value.
Bogus Prize Scams
They inform victims of winning prizes or vacations but require them to pay fees using gift cards to claim the rewards, which don’t exist.
Social Media Help Scams
The tricksters gather personal information from social media and pose as friends or relatives in need of urgent assistance, requesting gift cards for bail or emergencies.
How does a gift card scam work?
The gift card scam usually involves the fraudster tricking the person into buying a gift card and giving them their card details and codes. This fraud is commonly done by using phishing emails, phone calls, and impersonating authority figures or by offering fake discounted gift cards. Once the victim provides their card information, they immediately take out all the funds from their bank account, leaving them with no money. Scammers use the privacy and ease of gift cards, along with trickery and lies, to take advantage of people. To stay safe and avoid these types of scams, a person needs to avoid any unauthorised gift card payment or request. Also, report any unusual or illegal activities to the authorities.
How does a gift card scam work?How do you spot gift card scams?
To avoid this type of gift card scam, a person first must know how to identify the scam’s tactics and then avoid them. So, therefore, here are some common tactics that scammers use to trick a person into paying with gift cards:
Fake Federal calls
Sometimes scammers claim government agencies like IRD or the Social Security Administration. After that on-call, they ask for immediate fines or fees.
IT supports scams
In some cases, they act as tech support agents and claim that your computer has some kind of virus that needs urgent attention. Then they request that the user make a payment via gift card to fix the issue.
Romance scam
Tricksters use dating apps to make a romantic connection with the user, then ask for fabricated emergencies and ask for money from gift cards. Also, avoid meeting you in real life.
Impersonating as friends or family
Sometimes they call a person, pretend to be a friend or family member in trouble with the law, and ask for bail money in the form of gift cards.
Prize Scams
Fraudsters promise a big cash prize but require payment through a gift card to redeem the prize. Also, this tactic falls under the category of email gift card scams.
Overpayment Scams
Sometimes tricksters intentionally overpay the user and then ask for a return of the excess amount via gift cards.
How do I avoid gift card scams?
Here are some common points that you need to remember to avoid gift card scams
- Use caution when receiving calls claiming to be from government officials, as they typically communicate via mail and don’t request payment via gift cards.
- Contact utility companies directly through their official website if you receive any communication requesting payment via gift cards, as they do not accept this form of payment.
- Purchase gift cards directly from the cashier rather than from those displayed on store racks to avoid potential tampering.
- Ensure the PIN on the gift card hasn’t been scratched, indicating prior use, before purchasing.
- Beware of individuals who may try to scan your card’s ID number using a magstripe while you’re purchasing the card.
- Only share gift card details with trusted individuals, and use them promptly at the time of purchase, whether online or offline.
- Use gift cards received from relatives or loved ones within nine months to prevent expiration.
- Avoid purchasing gift cards from online auctions or platforms like eBay or Facebook Marketplace to reduce the risk of fraud.
- Be cautious when clicking on unknown links in emails or texts to avoid potential malware and identity theft.
How do we help you recover from gift card scams?
People who have been scammed out of gift cards are the specialty of our gift card recovery service. Our team works with law enforcement and investigation teams to find and get back stolen funds using tried-and-tested methods. We use a thorough method to deal with the complicated issues of gift card scams because we have a lot of experience getting money back. When we need to find scammers or fraudulent actions, our dedicated agents work with regulators, banking institutions, and law enforcement. We adapt our methods to fit your needs and give you information on how gift card scams work and how to avoid them in the future. With a focus on data protection, we make sure that your information is safe during the recovery process. Our main goal is not only to get you back the money you lost but also to get your gift card scam case resolved quickly and safely. You can count on our hardworking team to help you avoid falling for gift card scams and get back what is truly yours.
Frequently Asked Questions
Yes, a gift card scam can be traced. But it will depend on the investigative resources and the methods the scammer uses in the scam.
You can report a gift card scam to the Federal Trade Commission in your country online or connect with a recovery services company such as ours
Sometimes it may be done but in many cases, when a person falls victim to a gift card scam, they get all their card information and it’s nearly impossible to reverse the transaction.
No, a gift card is not a bribe. Giving something to someone to unfairly change their behaviour or decision is what makes it a bribe.
No, gift cards themselves are not hackable. But sometimes gift cards can be stolen, both physically and electronically.