Beware of Gift Card Scams: What You Need to Know

Picture this: you’re enjoying your favourite show when your phone rings. The number isn’t familiar, but distracted by the on-screen drama, you pick up. The voice on the other end says, “This is tech support. We’ve received a notification that your smartphone is infested with malware.” Your phone is your lifeline, so you panic. Fixing it quickly seems like the obvious choice, right?

That’s exactly what gift card scammers are counting on.

 

How Gift Card Scams Work

These scammers operate by phone, text, email, or even social media, impersonating:

• Government officials demanding fines
• Tech support representatives asking for repair fees
• Friends or family members claiming to be in urgent need of financial help

The common thread? They all insist on one form of payment: gift cards.

Typically, scammers ask for a specific type of gift card, such as Target, eBay, or Google Play. Once you purchase the card, they request the code on the back, which allows them to immediately drain the funds. To add pressure, they use fear tactics, warning of severe consequences unless you act quickly.

 

Why Do Scammers Use Gift Cards?

For scammers, gift cards are the perfect tool:

• Widely available: They can be bought almost anywhere.
• Instant access: Funds are available as soon as the code is provided.
• Anonymity: Unlike credit cards or bank transfers, gift card payments are difficult to trace or reverse.

 

What To Do If You’re Scammed

If you’ve fallen victim to a gift card scam, take these steps immediately:

1. Contact the Gift Card Issuer: Call the company that issued the card. While there’s no guarantee, they may be able to freeze the balance or recover your funds if the card hasn’t been fully drained yet.
2. File a Report: Notify federal and local law enforcement. Reporting helps prevent future scams and may provide recourse for your situation.

 

How To Protect Yourself From Gift Card Scams

Preventing these scams requires vigilance. Here are three essential tips:

1. Verify Before You Act

If you receive a request for payment—whether it’s from someone claiming to be from a company, government agency, or even someone you know—pause. Contact the person or organisation directly using a verified phone number or email address, not the one provided in the suspicious communication.

2. Watch for Red Flags

• Unsolicited contact: Scammers often reach out without warning.
• Urgency and pressure: If someone insists on immediate payment, it’s likely a scam.
• Secrecy: Requests to keep the transaction confidential are major warning signs.
  If you notice any of these, hang up or delete the message immediately.

3. Never Pay with Gift Cards

Legitimate companies and government agencies will never request payment via gift card. If someone asks for a gift card payment, it’s a scam—no exceptions.

 

Think Before You Act

Gift card scams rely on fear and urgency to catch people off guard. By pausing, verifying, and staying vigilant, you can protect yourself from these sneaky schemes. Remember, when it comes to gift cards, the rule is simple: if they’re asking, it’s a scam.