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Gift Card Scams

Two-thirds of U.S. adults plan to buy gift cards this holiday season, according to a November 2021 . But take care when buying or using gift cards: Scammers love them, too. It gives them numerous, virtually untraceable ways to steal. The money you put on gift cards is like cash — once it’s spent, you almost certainly can’t get it back. Fraudsters have developed two distinct ways to exploit that fact: and outright gift card theft. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine.

Gift card payment scams

Gift cards are the most common way from their targets, according to Federal Trade Commission (FTC). Con artists use Target, Walmart, iTunes and other popular gift cards as cash conduits in and scams. Consumers who filed complaints with the FTC about gift card payment scams in the first nine months of 2021 Contacting you in the guise of someone else — often a representative of a such as the or or a well-known company like or Apple — scammers claim you owe a debt or need a service. They insist you buy gift cards and read them the serial and personal identification (PIN) numbers on the back to make quick payment. Don’t believe it. Genuine businesses and government bodies never ask for payment via gift card. Any such request is a sure sign of fraud. The same holds if you get an urgent call from a , or if someone you’ve gotten close to online suddenly seeks a loan. An ask for money via gift card means you’re dealing with a crook, not a loved one. Fraudsters also lurk on resale or auction websites, ostensibly offering goods at an attractive discount. Once they get you interested in buying, they’ll ask you to pay with a gift card. As soon as they get the card number and PIN, they vanish, and so does the money on the card. raising money for a worthy cause or a congregant in need. They reach out to worshipers by email, text or phone, asking them to buy gift cards and share the numbers.

Gift card theft

Fraudsters have also developed ways to directly drain the cash consumers put on gift cards they’ve legitimately bought for themselves or others. Not surprisingly, these scams . One trick is for thieves to go to stores and surreptitiously scratch off the film strip on the back to get the PIN, which they cover back up with easy-to-obtain replacement stickers. Flowers & Gifts 25% off sitewide and 30% off select items See more Flowers & Gifts offers > The scammer enters the card numbers and PINs into a computer program that repeatedly checks the retailer’s website and lets them know when someone buys and loads a compromised card. The crook can then spend or transfer the money on the card, or cash it in, before the buyer or gift recipient has a chance to use it. More than 1 in 5 respondents to the AARP survey said they had given or received a gift card that turned out to have no value on it. Another ploy is the phony giveaway. You get an email or text, supposedly from a familiar store or organization (including, on occasion, AARP), saying you’ve won a gift card. To claim it, you just need to provide contact information, click through to a website or answer a few survey questions, often about your finances or health. The scammers can then install malware on your computer, use your data for or sell it to marketers, resulting in a barrage of spam emails about loan opportunities or AARP NEWSLETTERS %{ newsLetterPromoText }% %{ description }% Subscribe .You can also file complaints with the Federal Trade Commission ( or at 877-382-4357) and the Consumer Financial Protection Bureau (or at 855-411-2372). MORE FROM AARP Scam Tracking Map No matter where you live, fraud is never far away. Report a scam or search for existing scams near you. AARP VALUE & MEMBER BENEFITS See more Health & Wellness offers > See more Flights & Vacation Packages offers > See more Finances offers > See more Health & Wellness offers > SAVE MONEY WITH THESE LIMITED-TIME OFFERS