Gift Card Safety & Security

Protecting yourself from gift card scams and fraud

Important Safety Alert

If anyone asks you to pay for anything with gift cards, it's a scam. Gift cards are for gifts, not for payments. Government agencies, utility companies, tech support, and other legitimate businesses will never ask for gift cards as payment.

Gift cards are convenient and popular, but they can also be targets for scammers. Understanding how gift card scams work and knowing how to protect yourself is essential. This guide provides educational information to help you stay safe when buying, using, and storing gift cards.

Common Gift Card Scams

Being aware of these common gift card scams is the first step to protecting yourself:

Impersonation Scams

Scammers call or email pretending to be from government agencies (IRS, Social Security), utilities, tech support, or other businesses. They create urgent scenarios and demand immediate payment via gift cards.

Protection Tip: No legitimate organization accepts gift cards as payment. If anyone asks for gift cards as payment, it's always a scam.

Card Tampering

Fraudsters physically tamper with gift cards in stores, recording card numbers and PINs. After you purchase and activate the card, they drain the balance before you can use it.

Protection Tip: Always check gift cards for physical tampering before purchase, and buy from behind the counter when possible.

Fake Prize Scams

You receive a notification that you've won a prize or sweepstakes, but must first pay "taxes" or "processing fees" using gift cards to claim your winnings.

Protection Tip: Legitimate sweepstakes never require payment to claim prizes. Any request for gift cards to claim a prize is a scam.

Fake Websites & Phishing

Scammers create fake websites that mimic legitimate retailers or gift card balance-checking sites to steal your gift card information and drain the balances.

Protection Tip: Only check gift card balances directly through the official retailer's website or app. Verify the URL is correct before entering any card information.

Reselling Scams

On marketplace or social media sites, scammers sell gift cards claiming they have high balances but actually have little or no value, or they steal payment without providing the promised gift cards.

Protection Tip: Only purchase gift cards from authorized retailers or reputable gift card exchange websites with buyer protections.

Red Flags: How to Spot Gift Card Scams

Specific Payment Instructions

Scammers often provide detailed instructions on which store to visit, which gift cards to buy, and how to provide the card information to them.

Urgency and Pressure

Creating a false sense of urgency is a classic scam tactic. They may claim you'll be arrested, have services shut off, or miss a limited-time offer if you don't act immediately.

Secrecy Requirements

Scammers often insist that you keep the transaction secret and not tell family members, store employees, or bank staff about why you're purchasing gift cards.

Too Good To Be True Offers

Gift cards offered at steep discounts (over 20% off) should be viewed with suspicion, especially from individuals or unfamiliar websites.

Best Practices for Gift Card Safety

When Buying Gift Cards

  • Inspect before purchasing: Check the packaging for signs of tampering, such as an exposed PIN, scratched-off coating, or packaging that appears to have been opened and resealed.
  • Buy from secure sources: Purchase directly from the official retailer, their website, or authorized sellers. Be wary of gift cards from display racks in high-traffic areas.
  • Keep receipts: Save your receipt as proof of purchase, which may help if there are issues with the card later.
  • Check balance immediately: After purchasing, check the balance right away to ensure the card is properly activated with the correct amount.

When Using Gift Cards

  • Use official channels: Only check balances through the retailer's official website, app, or phone number printed on the card.
  • Use promptly: Use gift cards as soon as reasonably possible to minimize the window of opportunity for scammers.
  • Register when possible: If the retailer offers card registration, do so to help track your balance and potentially protect against loss or theft.
  • Treat like cash: Protect your gift cards as you would cash; keep them in a secure location.

If You've Been Scammed

  • Contact the retailer: Immediately report the situation to the company that issued the gift card.
  • Report to authorities: File a report with local police, your state consumer protection office, and the Federal Trade Commission at ReportFraud.ftc.gov.
  • Document everything: Save all communications, receipts, and gift card information as evidence.

Additional Safety Resources

For more information about gift card scams and consumer protection, visit these trusted resources:

FTC: Gift Card Scams Consumer.gov: Gift Cards AARP: Gift Card Fraud Prevention

Remember:

Gift cards are designed for gifting, not for making payments to businesses, government agencies, or resolving financial issues. Any request to pay with gift cards should be treated as a scam.