During the holiday season and into the New Year, keep your hard-earned money safe from scammers by spotting and avoiding gift card scams. Scammers want you to pay with gift cards because they are like cash – once you use a gift card, the money on it is gone.*
In a gift card scam, the scammer may:
- Tell you they’re from a government agency, and say you owe taxes or a fine.
- Pretend to be a family member or friend in trouble, who needs money right away.
- Say you’ve won a prize, but first must pay fees or other charges.
In these and similar scenarios, be on the lookout for following signs that you are likely dealing with a scammer:
- The caller says it’s urgent. They tell you to pay right away or something terrible will happen. They try to pressure you into acting quickly, so you don’t have time to think or talk to someone you trust.
- The caller usually tells you which gift card to buy. They might tell you to put money on a Google Play, Target, or iTunes gift card — or send you to a specific store like Walmart, Target, or CVS. Sometimes they tell you to buy cards at several stores, so cashiers won’t get suspicious. If so, stop. It’s a scam.
- The caller asks you for the gift card number and PIN. The scammer uses that information to get the money you’ve loaded on the card. Don’t give them those numbers. It’s a scam. You’ll lose your money, and you won’t be able to get it back.
If you paid a scammer with a gift card, tell the company that issued the card right away. Make sure to keep the card and find any receipts you have. Then report to the FTC at ReportFraud.ftc.gov.