Gift cards remain a convenient and widely appreciated gifting option for all occasions. In 2024, gift card spending in the United States is projected to reach $324.5 billion, a significant increase from prior years. Global gift card spending is expected to exceed $474.8 billion, reflecting their enduring popularity.
However, with the holiday season being a prime time for gift card purchases, it’s also a peak period for scams targeting both givers and recipients. Protecting yourself from these scams is more critical than ever.
Overview of Gift Card Scam Methods
Whether you're buying or receiving a gift card, staying vigilant is crucial. Here’s an overview of the most common types of gift card scams in 2024, their warning signs, and how to protect yourself:
1. IRS or Government Gift Card Scams
Scammers impersonate government officials, claiming you owe money to the IRS or other agencies and demanding payment via gift cards. This scam continues to target vulnerable individuals despite public awareness efforts.
- What to do: If someone contacts you claiming you owe money to the IRS or another government agency and requests payment via gift cards, hang up immediately.
- Do not click on any links or respond to suspicious emails.
- Report the incident to the Treasury Inspector General for Tax Administration (TIGTA) or the Federal Trade Commission (FTC).
2. Card Number Scams
Fraudsters jot down gift card numbers from public displays, waiting for them to be activated. Once activated, they deplete the card's balance online before the recipient can use it.
- What to do: Only purchase gift cards with scratch-off covers or sealed numbers.
- Inspect cards for signs of tampering before purchase.
- Consider buying gift cards directly from retailers' secure online stores or behind-the-counter displays.
3. Imposter Scams
Scammers impersonate relatives or friends, claiming to be in an emergency and requesting gift cards as financial aid. These scams often target older adults and exploit personal information to appear credible.
- What to do: Verify the identity of anyone claiming to be a relative or friend by calling or texting them directly.
- Never share gift card numbers over the phone or online unless you are certain of the recipient's legitimacy.
- Report suspicious requests to local law enforcement or the FTC.
General Tips to Protect Yourself from Gift Card Scams
- Buy from Trusted Sources: Purchase gift cards directly from the retailer's official website or in-store. Avoid public auction sites or third-party resellers.
- Inspect the Card Before Purchase: Ensure that gift cards are intact, with no signs of tampering. Avoid cards with exposed PINs or scratched-off covers.
- Be Wary of Unsolicited Requests: Never provide gift card numbers to anyone claiming to be from a government agency, law enforcement, or a relative in need.
- Avoid Public Racks: Publicly displayed gift cards are more susceptible to tampering. Opt for cards kept behind the counter or in secure locations.
- Report Suspicious Activity: If you suspect a scam, report it immediately to the retailer, the FTC, or your local law enforcement agency.
- Be Cautious with Online Transactions: When selling or trading gift cards online, avoid participating in three-way balance checks. These can expose your card’s information to scammers.
Stay Safe While Enjoying the Convenience of Gift Cards
Gift cards are a practical and thoughtful gift option, especially during the holidays. While scammers remain active, taking precautions can help you avoid falling victim to their schemes. By purchasing cards securely, staying alert to fraud tactics, and reporting suspicious activity, you can confidently share the joy of gift-giving without compromising your financial safety.
Remember, vigilance is key. Enjoy the convenience of gift cards while keeping your guard up this holiday season and beyond.