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Identity theft and fraud protection for your finances, personal info, and devices.
Is Someone Asking You for a Gift Card? It Could Be a Scam!
Gift cards offer a legitimate way to buy products or pay for services through the card issuers themselves. But if someone pressures you to pay for other products, services, fees, fines, or taxes by buying gift cards (and providing them with the numbers and PINs), it’s almost certainly a scam.
According to the Federal Trade Commission (FTC) [*]:
Americans lost more than $100 million to gift card scams in the first half of 2023 alone.
Gift card scams can take on a variety of forms and aren’t always easy to spot — until it’s too late.
In this guide, we’ll explain how gift card scams work, the latest schemes to watch out for, and how (or if) you can get your money back if you’ve been scammed.
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How Do Gift Card Scams Work? Why Do Scammers Want Gift Cards?
Gift card scams comprise a variety of schemes in which scammers trick you into paying for goods, services, fees, fines, or taxes with gift cards — often by posing as a person, company, or government agency that you trust.
Gift card scams are so prevalent that the AARP estimates [*]:
Nearly one out of every three Americans has been targeted by gift card scams.
Scammers want gift cards because they’re available almost everywhere — online and in person — and nearly impossible to trace or refund once you’ve sent someone the gift card numbers and secret PIN codes on the backs of the cards.
Here’s how a typical gift card scam might play out:
- Scammers contact you via phone calls, emails, or texts, and impersonate someone you know or trust. There are countless methods that fraudsters may use to target you and demand gift cards — from scam calls impersonating government agencies like the Internal Revenue Service (IRS) to phishing emails and text messages purporting to be from your bank.
- Next, they create a sense of urgency by claiming you or someone you know is in trouble. Scammers use a wide variety of social engineering tactics to get you to send them gift cards. For example, they may claim to be from the IRS or FBI and demand payment for fees via gift cards — and threaten you with jail time and fines if you don’t comply. By inventing an emergency scenario, scammers hope to prevent you from thinking clearly about the situation.
- To “fix” the problem, you’re asked to purchase gift cards and send the numbers and PINs to the scammers. They often tell you exactly which gift card carriers they prefer (for example, Apple, Amazon, or Visa gift cards). They guide you to the nearest retail store, and then ask you to purchase and read out the gift card numbers over the phone. This way, scammers can empty the gift card balance before you realize what’s happened.
- If you comply, they continue to scam you until you catch on. If you’ve bought gift cards for a scammer once, they often try to trick you into buying more. This may not happen right away, but you’ve already proven to them that you’re willing to pay.
The bottom line: Gift card fraud is growing — and shows no signs of slowing down. Unlike other forms of payment, gift cards offer little protection against scams. If someone asks or demands that you pay with a gift card, be extremely cautious.
The 10 Latest Gift Card Scams (and How To Avoid Them)
- Government imposters
- Fake bank employees
- Romance scammers
- Giveaways requiring that you pay fees
- Fraudsters posing as your utility company
- Scammers impersonating a friend
- Tech support scammers
- Refund scams
- Fundraiser scams and fake charities
- Physical gift cards that have been emptied
Fraudsters are constantly finding new ways to trick you into sending them gift cards. Here are the latest gift card scams to look out for:
1. Government imposters asking for payment in gift cards
In this common gift card scam, fraudsters impersonate government employees working at the IRS or the Social Security Administration (SSA) and try to intimidate you. They may claim that you owe fees, fines, or taxes — and demand gift cards as the easiest and fastest payment method.
In some versions of this scam, fraudsters impersonate local law enforcement officials or even the FBI, and try to convince you that refusing to pay will lead to an arrest warrant in your name.
How to spot and avoid a government imposter gift card scam:
- Government employees never accept payments in gift cards. If you owe money to a government agency, it will always request payment through an approved official channel – like a check or a bank transfer.
- They won’t let you hang up and call back. Government employees never use threats to keep you on the phone. You should always hang up and call back the agency directly by using the official phone number posted on its website.
💡 Related: What Is Voice Phishing (Vishing)? How To Avoid Phone Scams →
2. Fake bank employees requesting gift cards to “protect” your funds
Fraudsters also regularly impersonate bank employees. In this scam, they call or send you a fake text — warning that something is wrong with your account, such unauthorized activity or some other security threat. They recommend that you buy gift cards as a way to transfer your funds to a “safe” account in order to prevent hackers from emptying your bank account.
How to spot and avoid fake bank employee scams:
- Banks and financial institutions never suggest that you buy gift cards. In fact, legitimate bank employees won’t tell you what to do with your money.
- Fraud alerts should only come from the bank’s official contact methods. Financial institutions know that scammers often impersonate them, so they only use official contact methods to warn you of potential fraud. If you’re unsure if an alert is real, hang up and call the number on the back of your bank card.
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3. Romance scammers asking for gift cards so they can visit you
In this type of scam, con artists create fake online profiles on social media or dating apps and try to quickly build a romantic relationship with their victims. Once they feel you’re hooked on the relationship, they start requesting gifts and prepaid cards to pay for emergencies or even expenses associated with coming to visit you.
How to spot and avoid a romance scam:
- Don’t send money or gift cards to people you haven’t met in person. Anyone who asks for money before meeting you is most likely trying to scam you — or at least, doesn’t have your best interests at heart.
- Look for signs that you’re dealing with a romance scammer. These fraudsters typically “love bomb” you by offering constant praise or quickly saying that they love you. They also often post stolen photos to create attractive profiles. Use Google’s reverse image search to see where a profile picture is actually from — and if it belongs to the person you think you’re talking to.
💡 Related: How To Avoid Online Dating Scams →
4. Giveaways requiring that you pay fees or taxes via gift cards
Fake giveaway scams are commonly used in gift card scams, especially during the holiday season. In this con, fraudsters claim that you’ve won a prize, lottery, or giveaway — but you need to pay fees or taxes via gift cards in order to claim the prize.
How to spot and avoid giveaway and lottery gift card scams:
- Never pay for prizes you’ve won. No legitimate lottery, sweepstakes, or giveaway will ask you to pay for something you’ve won — especially by using unsecure payment methods such as gift cards.
- If you didn’t enter the sweepstakes or contest, it’s a scam. All legitimate lotteries and sweepstakes require you to sign up in order to win. If you didn’t buy a ticket, share your email address, or complete some other task to enter the contest, it’s not real.
5. Fraudsters posing as your utility company and asking for gift cards
Scammers may also impersonate your utilities providers and claim that you owe money. If you don’t pay, you risk having your water, power, or electricity turned off. They often claim that you’re behind on payments and need to pay now, and that gift cards are the easiest way to ensure that you don’t lose access to your utilities or face criminal charges for failing to pay.
How to spot and avoid a utilities gift card scam:
- Utility companies never ask for payment via gift cards. All utility and telecom providers have authorized payment systems that accept credit cards. They can’t accept gift card payments and will never ask for them.
- Don’t fall for a false sense of urgency. Even if there’s an actual problem with your payments, it’s unlikely that your provider will shut off your power or water immediately — particularly if you have no record or knowledge of your utility company contacting you previously about missed payments.
6. Scammers impersonating a friend or family member in need
In this gift card scam, fraudsters impersonate your friends and family members, or even hack their accounts — and then reach out to you via emails, social media, or text messages, and request help buying gift cards (with the promise of paying you back later).
An especially devious version of this scam targets grandparents by claiming to be grandchildren in danger — usually calling to say they’ve been arrested or are in the hospital — and pleading for gift cards to help them.
How to spot and avoid family and friend impersonation scams:
- Remind friends and family members that they should never use gift cards in place of money. If you need to send money to someone you know, use a secure payment method that you both trust.
- Create a secret password that only your friends and family know. This can be a phrase (or question and answer) that you use to ensure you’re talking to the real person. Make sure you don’t write down your secret code anywhere, and don’t share it with anyone.
💡 Related: The Best Identity Theft Protection For Seniors →
7. Tech support scammers requesting payment or access to your computer
Another common gift card scam occurs when fraudsters trick you into thinking your computer or device has a virus, and offer to help you by impersonating tech support agents. For example, you might see a pop-up on your screen saying that your device has been infected with malware, or receive text message warnings claiming to be from Microsoft, Google, or other well-known tech companies.
When you call the number noted in the text or pop-up, you’re then persuaded to either pay for bogus tech support help with gift cards — or worse, give a hacker remote access to your computer.
How to spot and avoid scammers impersonating tech support personnel:
- Learn to recognize a fake malware or virus warning. Only legitimate antivirus software programs, or your device’s built-in tools, can scan for and warn you of viruses. If you see a pop-up in your browser window (or an email or text) claiming that your device has been infected, it’s a scam.
- Only contact tech support by using the company’s official phone number. Never call any number included in a pop-up message. If you need to call a company’s tech support line, use the retailer or company’s official phone number listed on its website.
💡 Related: How To Check If Someone Is Remotely Accessing Your Computer →
8. Refund scams in which fraudsters claim to have sent you too much money
This sophisticated scam can take multiple forms — but the basic elements are the same. First, someone sends you money (via check, payment app, etc.). Then, they claim to have sent you too much, and request a partial refund via gift cards. Next, after you’ve sent the cards, the original payment type comes back as fraudulent.
For example, if you’re selling an item on Craigslist, Facebook Marketplace, or eBay, beware of any buyer offering to send you a check for more than the listed price. This is almost always a scam.
How to avoid falling victim to refund scams:
- Don’t refund money too quickly. If someone sends you too much money — especially via check — wait until the check has officially cleared with your bank before sending back a refund.
- Only send a refund by using the same payment method. If someone asks for a refund by using gift cards instead of the method through which they originally paid you, you can safely ignore their request. It’s a scam.
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9. Fundraiser scams and fake charities asking for donations via gift cards
Scammers can also trick you into sending them gift cards by impersonating charities and nonprofits. Fraudsters may research your background to see what groups you’ve donated to in the past and then contact you with a similar proposition. Or, they may use any donations you’ve posted publicly to target you by saying there was an issue with your payment method — and that you need to send a gift card instead.
How to spot and avoid fundraiser and non-profit donation scams:
- Verify any charity before sending money. You can make sure a charity is legitimate by researching it on websites like Charity Navigator or the BBB Wise Giving Alliance. Nonprofits need to document every dollar they receive, so it’s safe to assume that no legitimate organization would accept donations via gift cards.
- Always verify claims about payments that you’ve made. If someone says a payment you made didn’t go through, don’t do anything until your bank confirms the story.
💡 Related: 12 Scams Targeting Seniors (and How To Avoid Them) →
10. Physical gift cards that have been emptied before you purchase them
While most gift card scams take place via phone, email, or social media, physical gift cards in stores can also be compromised.
In some instances, scammers scratch off the backs of gift cards in stores, write down the numbers, and then apply fake barcodes or replacement stickers. When you buy and load up the gift card, scammers are then able to empty your balance before you can spend it.
How to spot and avoid empty gift card scams:
- Check gift cards before you buy them. Inspect cards for signs of physical tampering before you buy them by running your finger over the back. Don’t buy any card that has a sticker placed over the original card display.
- Confirm the balance, and keep your receipt. Whenever you buy a gift card, ask the cashier to verify the balance at checkout. You’ll get a receipt that you can use to dispute the card if something unexpected happens.
Can You Get Your Money Back If You Send a Scammer Gift Cards?
If you gave money to a scammer by using gift cards, you may be able to get your money back — but the process isn’t easy. You’ll need to document the scam and prove that you were a victim. If you quickly report the fraud to the company issuing the card, you may even be able to stop the scammer from using the money and recover some or all of your gift card’s balance.
Here’s how to try and recover money from several major retailers and gift card vendors:
Beware: If you’ve been targeted by a gift card scammer, you may be at risk of other more dangerous scams. For example, if you’ve given up personal information, fraudsters can use your stolen Social Security number (SSN), bank account data, or card details to commit identity theft and take out loans in your name.
If you suspect that your identity or personal information has been compromised, you may need to file a police report, as well as report the fraud to the Federal Trade Commission (FTC) at both ReportFraud.ftc.gov and IdentityTheft.gov.
How To Avoid Gift Card Scams
Gift cards are among the most common currencies used by scammers to steal money. Any time someone suggests transferring money by using gift cards, pay close attention – it’s almost certainly a scam.
You can protect yourself from these types of scams (and many more) by following these tips:
- Don’t let people pressure you into paying for fees, fines, services, or products by using gift cards. Gift cards are for gifts. If you’re being told to use gift cards to pay for something other than a product or service from the gift card issuer, it’s a scam.
- Check gift cards for physical damage before purchasing. Run your finger over the back to ensure that the card hasn’t been tampered with or manipulated.
- Ignore unsolicited contact attempts from people you don’t know. The use of scam calls, texts, social media messages, and emails is the #1 way that scammers target victims with gift card scams.
- Use Safe Browsing tools to avoid visiting fake websites. Identity Guard comes with digital security tools that warn you if you’re entering a fake website that’s trying to steal your personal information.
- Research charities and nonprofits before donating. Make sure you’re giving money to legitimate organizations only.
- Regularly monitor your debit cards, credit cards, and bank statements. Look out for strange transactions or changes to your personal information. If you see anything strange, contact your financial institution immediately.
Finally, for added peace of mind, consider signing up for an identity theft protection provider.
Identity Guard helps shield you from scams and fraud with a comprehensive set of tools, services, and support. With Identity Guard, you get award-winning identity theft and fraud protection, Safe Browsing tools, access to a dedicated team of U.S.-based support representatives, and up to $1 million in insurance coverage for eligible losses due to identity theft.
