Gift cards have become one of the most popular holiday presents. They offer a convenient way to give friends and family the freedom to choose their own gifts while ensuring that your gesture is still personal. But as the popularity of gift cards rises, so too does the risk of falling victim to holiday scams. Fraudsters know that during the holiday season, many people are buying gift cards in bulk, and they’re ready to take advantage of that.
Here’s what you need to know about the latest gift card scams and how to protect yourself while shopping this holiday season.
How Gift Card Scams Work
Scammers have developed several tactics to exploit gift card buyers, and they often use a combination of technology and in-store tricks to target unsuspecting shoppers. Below are some of the most common types of gift card scams to be aware of:
1. Tampered Gift Cards on Store Shelves
One of the most prevalent scams involves tampering with physical gift cards found on store shelves. Scammers will remove the cards from their packaging, scratch off the protective covering to reveal the card’s code, and then carefully reseal it. They then place the compromised cards back on the rack, waiting for an unsuspecting buyer to purchase them.
Once the buyer activates the card at checkout, the scammer can immediately drain its value online using the previously stolen code. The gift card recipient is then left with a card that has already been used.
2. Phishing for Gift Card Codes
In this scam, fraudsters contact victims via email, phone calls, or text messages, pretending to be a legitimate organization or even someone the victim knows. They might claim that there’s an emergency or a pressing need for gift cards to resolve an issue, such as paying for a hospital bill or helping a charity. The scammer asks the victim to purchase gift cards and send the codes immediately, often urging them to act quickly to avoid “further complications.”
Once the victim provides the gift card codes, the scammer uses them to make online purchases, leaving the victim out of money and possibly feeling embarrassed for falling for the trick.
3. Fake Online Marketplaces
Scammers also set up fake online stores that advertise discounted or hard-to-find gift cards. These sites may look legitimate, but once you make a purchase, you’ll either receive a worthless gift card or nothing at all. In some cases, scammers will sell gift cards that were previously drained of their value, leaving buyers with useless pieces of plastic.
Online classifieds and social media marketplaces can also be risky places to buy gift cards. Fraudsters sometimes offer cards at steep discounts to attract buyers. However, once the transaction is complete, the buyer finds out that the gift card’s balance is much lower than advertised, or it has no balance at all.
4. Gift Card Balance Theft
Even if you think you're being careful by purchasing a card directly from a reputable retailer, scammers have found ways to exploit this too. Some fraudsters use technology to track the balance of gift cards as soon as they are activated. They monitor these cards online and steal their value the moment they detect the card has been loaded with funds. By the time the gift card reaches the intended recipient, the balance is long gone.
How to Protect Yourself from Gift Card Scams
The good news is that there are ways to safeguard yourself from falling victim to gift card fraud. By taking some precautionary steps, you can ensure that your gift cards remain safe and that your holiday gifts don’t become holiday headaches.
1. Buy Gift Cards Directly from the Source
Whenever possible, purchase gift cards directly from the retailer or from trusted, well-known stores. Avoid buying gift cards from online auction sites or third-party vendors, as the cards sold on these platforms may be stolen, counterfeit, or previously used. Buying directly from the source ensures that you’re getting a legitimate product that hasn’t been tampered with.
2. Inspect Gift Cards Before Purchase
If you’re buying a physical gift card from a store, take a moment to inspect it carefully. Make sure the protective sticker over the card’s code hasn’t been scratched off or tampered with. Check the packaging for signs of resealing or other unusual marks that might indicate the card has been compromised. If anything looks suspicious, choose another card or ask store employees for assistance.
3. Keep Your Receipt
After purchasing a gift card, always keep your receipt as proof of purchase. Some retailers may be able to replace a lost or stolen card if you can provide proof that you bought it there. Additionally, keeping your receipt makes it easier to resolve any issues if the card turns out to be faulty or already used.
4. Be Wary of Urgent Requests for Gift Cards
If someone contacts you urgently requesting gift cards, especially for reasons that seem unusual, pause and verify the request. Scammers often pose as someone you know, like a boss or family member, asking you to send them gift card codes immediately. Always confirm the legitimacy of the request by contacting the person directly through a known method, not through the contact information provided in the suspicious message.
5. Check Gift Card Balances Regularly
After purchasing a gift card, regularly check its balance before giving it as a gift. This ensures that no unauthorized transactions have occurred since you bought it. Most retailers allow you to check the balance online or through a customer service hotline.
What to Do if You Fall Victim to a Gift Card Scam
If you realize that you’ve fallen victim to a gift card scam, there are steps you can take to try and recover your funds. Contact the retailer immediately to report the fraud. Provide them with your receipt, card number, and any other relevant details. Some companies may be able to freeze the card before the scammer can use it, though success is not guaranteed.
You should also report the scam to the Federal Trade Commission (FTC) and your local law enforcement. While it may be difficult to recover stolen funds, reporting the crime helps authorities track down scammers and prevent others from falling victim.
Conclusion
Gift cards remain a popular and convenient way to spread holiday cheer, but they’ve also become a target for scammers. By staying vigilant and taking simple precautions, you can protect yourself and ensure that your gift cards go to their intended recipients with their full value intact. This holiday season, make sure your generosity doesn’t fall into the hands of fraudsters.