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March 2nd, 2025
Gift cards used to be a simple, thoughtful gift suitable for anyone- but today, they’ve become a favorite tool for scammers looking to deceive unsuspecting victims.
In 2023 alone, gift card scams accounted for $217 million of the $10 billion lost to scams nationwide. With scams growing more sophisticated, it’s easier than ever for criminals to manipulate emotions, creating a sense of urgency and pressuring victims to act quickly.
In this article, we’ll explore how scammers use gift cards as a tool for fraud, the tactics they rely on, and the steps you can take to safeguard your finances.
What Are Gift Card Scams?
Gift card scams happen when fraudsters trick victims into buying gift cards and sending them card numbers and PINs. The scammer then uses or sells the gift cards, stealing the money on them. These scams are often hard to spot because they look legitimate, and victims typically don’t realize they’ve been scammed until it’s too late.
Scammers target gift cards because they are quick to use and hard to trace, making them the perfect tool for fraud. Once the scammer has the card details, it’s nearly impossible to recover the stolen funds, leaving the victim with little chance of getting their money back.
How Gift Card Scammers Target The Vulnerable
Scammers rely on various psychological tactics to manipulate victims. Here are some common strategies:
- Creating Urgency: Scammers often pressure victims into buying gift cards quickly by claiming an emergency or immediate need (e.g., a family member in distress or a time-sensitive opportunity).
- Emotional Manipulation: Fraudsters exploit emotions like fear or guilt, making the victim feel responsible or scared to send money through gift cards.
- Impersonating Trusted Figures: Scammers pretend to be family members, friends, or reputable organizations to gain trust. They may use convincing phone calls or emails to ask for help with using a gift card.
- Secrecy Requests: Scammers often ask victims to keep their transactions secret, playing on the victim’s fear of being judged or not being believed.
- Offering Fake Rewards or Prizes: Some scammers promise large rewards, like lottery winnings or exclusive offers, in exchange for buying gift cards. The victim is led to believe they’ll receive something in return, but it’s just a scam.
Common Types of Gift Card Fraud
Gift card scams come in many forms, each with its own approach to tricking victims. Here are some of the most common types:
Romance And Dating Scams
In 2024, an estimated 58,734 people fell victim to romance scams in the United States, many of which involved gift card fraud. In such scams, fraudsters build fake relationships with victims, often through dating websites or social media. By gaining their trust over time, scammers can form a close bond with their victims, tricking them into thinking they are someone they can rely on.
Once the victim is emotionally invested, the scammer creates a fake emergency (such as needing money for medical bills or a flight), urging them to send gift cards as a form of payment. Victims may end up sending gift cards worth large amounts of money, thinking they’re helping their new “partner,” but in reality, it’s all a scam.
Tech Support Scams
In tech support scams, fraudsters pose as legitimate tech support representatives from well-known companies. They claim the victim’s computer is infected with a virus or has a critical issue that requires immediate attention.
The scammer then convinces the victim to buy gift cards as a way to pay for the repair services or software. In reality, the victim’s computer is fine, and the scammer pockets the gift card funds.
Fake Prize-Winning Offers
Scammers running prize-winning frauds promise large rewards, such as a car, big amounts of cash, or all-expenses-paid vacations. The victim is informed they’ve won a prize, but to claim it, they need to first pay processing fees using gift cards. Once the victim sends the gift cards, the scammer disappears, and no prize is ever delivered.
This type of gift card scam is usually the most common, as it can be executed on any online platform.
Recently, the art-sharing community DeviantArt was hit with a tirade of gift card scams, with many users being offered free high-value gift cards in exchange for following a few simple steps. Seemingly harmless, the actions would eventually result in a user being locked out of their account with no gift card in sight.
Re-selling Discounted Gift Cards
Fraudsters also take advantage of online platforms like Craigslist or Facebook Marketplace to offer discounted gift cards at a “great deal.” The scammer may claim to sell gift cards for a fraction of their value, enticing buyers with savings.
However, after the buyer makes the purchase and receives the card, they discover the card is either empty or has already been used.
Tampering With In-store Gift Cards
In this scam, fraudsters place empty gift cards on store racks or swap the packaging of a legitimate card for a counterfeit one, usually during a busy time of the year such as Black Friday or Christmas.
Unsuspecting buyers purchase the cards, only to find they’ve already been emptied, and the scammer has already used or resold the funds.
These scams rely on the victim’s trust and sense of a good deal, so it’s essential to stay cautious when buying gift cards from unfamiliar sources.
Top Tips To Avoid Getting Scammed
Preventing gift card scams requires staying vigilant and knowing how to act when something feels off. Follow these key steps to protect yourself:
- Don’t Trust Unsolicited Requests: If someone unexpectedly asks you to purchase gift cards, be cautious. Scammers often reach out through phone calls, emails, or social media messages. Tools like a reverse lookup can be especially helpful to ensure you know who you’re dealing with.
- Double-check with Trusted Contacts: If the request comes from someone you know, don’t just respond based on the message. Reach out to them directly using contact details you already have (such as calling their phone number). Scammers often impersonate people you trust to make their demands seem more legitimate.
- Refuse to Keep It a Secret: Scammers will often ask you to keep the transaction secret, claiming it’s urgent or confidential. If you’re asked to hide the purchase, it’s a clear red flag. Legitimate transactions won’t come with such secrecy requests.
- Be Careful of Specific Gift Card Brands: Scammers tend to ask for specific gift cards that are hard to trace or convert easily into cash, like iTunes, Google Play, or Amazon. If someone insists on a particular brand, be extra cautious.
- Report Suspicious Activity Immediately: If you suspect you’re being scammed, don’t hesitate to report it. Contact the retailer, your bank, and the authorities. The faster you act, the better chance you have of preventing further damage.
Conclusion
Gift card scams may seem like a small risk, but they can lead to significant financial loss and emotional distress.
Remember, scammers thrive on urgency, secrecy, and emotional manipulation, so always trust your instincts and take your time when making decisions involving gift cards. If something doesn’t feel right, don’t hesitate to verify it or seek help.
