Gift card scams are one of the most effortless hooks to loot your money, and scammers have now made it more familiar. In 2021 alone, gift card scammers have sacked more than $148 million from 40 thousand citizens of the United States of America. But how do they manage to pull it off? What are the popular types of "Gift Card Scams," and how do you know if you could be scammed next?
Well, there are a lot of questions, and the answers lie in being aware of such happenings. Let's check a few of the popular types of "Gift Card Scams" and how you can avoid being the next one to it.
10 Popular Gift Card Scams That You Need to Be Aware of
Gift cards are pretty common during the holiday seasons, or when you want to present them to a close one, so most citizens love buying them. Moreover, there are a lot of benefits that come along when you spend gift cards instead of credit cards or cash. Gift cards help you get the most out of your purchases, from discount points to budget spending.
But are you the only one who can redeem your gift cards?
Not really, scammers love the gift card scams as these leave no traces, and once the gift card is redeemed, your money is gone for good. But it is your gift card; how do they(scammers) get all the digits from the back of the card even when they are not friends with you?
They pull clever scams, and here are the ways the scammers use to get all of your gift card information for their benefit.
1. Posing as Government Representatives (IRS, SSN, and More)
The most common gift card scam is where scammers pose as government officials from IRS and other government agencies. Here, victims are told about the additional charges on their debt, or their Social Security Number is revoked, and they need to pay to issue a new one or clear the charges.
Victims are then asked to pay using gift cards to remove the negative charges, but it is where you can spot the scammers. Firstly, government agencies do not text or call regarding an issue, and they use the postal/mail service as per the norms. Secondly, why would any government agency ask you to pay using gift cards when there are other cashless options?
Victims share the gift card details, like the unique code and pin, and lose their money. Since no direct money is involved, gift card scammers can quickly redeem your gift card at home depot, gas stations, or anywhere else, hardly being traced.
Do not share your gift card information on the phone to avoid losing your gift cards to scammers acting up as government officials. Instead, go to the relevant and genuine government office and get things more transparent. If such an issue exists in reality, you can sort it out then and there.
2. Fraudulent and Resale Websites
If you are an internet bee who loves spending most of the time exploring websites, deals, and other offers, you need to be aware of scams that happen along.
In this case, you might end up on a website scrolling for the best deals or receive an email with discounted offers. The scammers give you heavy tempting discounts, and you might find them legitimate as they quote them as "resale" deals.
Once you find an exciting deal, you will now be asked to make a payment, but there is a catch, the payments are to be made using only the gift cards. After you enter the gift card code, the website shows you a fake receipt, and you will end up waiting for the shipment to arrive, which will never.
After you enter the gift card code, your pin and code are used to make the scammer's own purchases, and they redeem your gift card. These are quick purchases with a fake address to avoid leaving any track, and your gift card deduction message is received a few minutes later after you make the purchase.
Internet is a massive world, and such scams are now more common. Here are some of the things you can do to ensure you are not being scammed on the internet -
- Ensure you are always on an HTTPS website
- Use a web protection/tracker extension
- Redeem your gift card codes only on trusted and reputed websites
- Check if the deal is real and the website is genuine
- Do not click on the links that redirect you to a shady website
3. Phishing with Negative Charges on Account
Phishing has been an age-old trick for scammers, and it works most times. In this technique, scammers make a duplicate copy of the website or redeem pages and target them to the users to rob their gift cards and pins.
Most victims fall for phishing scams as these are exact copies of the redeem pages, and these look legitimate. You can also find that phishing websites use similar domain names that confuse the victims into believing they are using gift cards on genuine websites.
Once the gift card details are entered, you are redirected to the original website and tricked into believing you have utilized the card. Unless you check your gift card balance in your account and realize you have lost all your money or points.
Here are a few tips you can use to avoid losing your gift card to phishing pages,
- Always check the website domain name for spelling mistakes or if they use a different TLD (.co.uk, .us, etc.)
- Only redeem your gift card on websites using an HTTPS connection
- Check the website structure and domain age to know the website's authenticity
4. Fake Tech Support
"Hello, sir/madam, I am calling from a reputed company, and we need to inform you about suspicious activity on your account/device."
Tech support is one of the most crucial teams that help you with your account activities or when you are facing a particular problem with some of the features. However, these also allow scammers to call you regarding a virus on your computer or suspicious activity and scam your gift card money.
In exchange for fixing the issue, which does not exist at all, scammers ask for payments in gift cards, where most victims end up losing all their money.
At times, scammers also ask victims to install a remote app on their computer, disable all the programs, and victims can no longer use them. In exchange for unlocking their device, scammers ask to make payments in gift cards and leave no trace behind.
5. Close Relatives and Friends in Need Messages
You often receive spam emails and messages quoting close friends or relatives who require urgent funds and asking if you could help. These spam emails are usually sent with an emotional quotient of emergency, medical help, or before the death bed wish.
However, the strange part is that victims don't know anything about the person who sent this email, and such emails are sent to thousands of users every day. When you agree to help such scammers, they ask you to send crypto help or support using gift cards.
It is one of the easiest ways to scam users who are innocent and unaware of such happenings. But if you are aware of it and do not respond to emails, calls, and messages asking you for gift cards as a help, you can avoid being scammed.
6. The Romance Scam
Dating apps have contributed enough to scams, including the infamous "gift card scams," Unlike the older audience, young teenagers and adults mostly fall for these.
In this case, young men/women create a fake account or act as if one is interested in middle and upper-class partners. Once you match them, they start gaining your trust with smooth chats and talks. Meanwhile, these scammers are simultaneously chatting with tens of other partners with the single aim of scamming them.
After gaining enough trust, these scammers start asking for gift cards as favors and then ghost the partners. This is one of the most common scams among youngsters and still one of the popular ones.
To help youngsters tackle such scams, parents or advisors such as teachers can help them be aware of such happenings and enforce restrictive measures on dating apps. Let the young kids know about not trusting such users online on dating apps or other social media platforms.
7. Stealing the Numbers
Imagine what if your gift card is scammed even before you buy one? This is one of the common and popular gift card scams where scammers steal preloaded gift cards with their crafts and skills.
Scammers target departmental stores, home depot, and other familiar places where you can find and purchase a preloaded gift card. At first, they take a lot of gift cards and start photocopying the barcode behind them and then paste a fake sticker barcode above them to hide the original code.
The only thing they have to do is wait until the victims buy and activate their gift cards. To know this, scammers can easily visit the website on such gift cards and then query if the gift card is activated. Once the card is activated, scammers use the original barcode and make quick payments at the nearest departmental stores or home depot. At the same time, the victims are shocked, trying to comprehend where they lost all the gift card money.
At times, shady departmental store owners also tamper with your gift card and replace the original gift card with a fake one during the checkout.
To be aware of this scam,
- Do not buy gift cards from shady stores or places
- Try getting an e-gift card to avoid such tampering
- If you buy a physical gift card, always check for package tampering and torn parts
- Gently rub your nail on the barcode to check if they easily come out, as scammers use a paper barcode to hide the original printed ones
- Always keep an eye on your gift card during the checkout
8. Utility Threats
Another common type of gift card scam is when the scammer calls from the utility department, such as power, water, or gas, and informs you of a due that is not yet cleared.
To clear the due, the representative asks you to make the payment right away using a gift card to remove the added interest. The first thing here is that the utility department never asks you to clear the due using gift cards or make calls regarding it. These are the scammers and a big red flag for the victims. Secondly, you get a notice in your mailbox if there are unpaid dues with a deadline rather than such shady calls; some of these utilities can now also be tracked online with an app, so you can check for any unpaid dues on your smartphones to be sure about them.
Always check with the utility department office for such unclear dues, and do not ever give out your gift card information without proper research.
9. Congratulations, You Have Won a "Fake" Price
The most infamous act of scamming victims is pop-up ads, text messages, and emails quoting, "you have won a prize; click here to claim it."
This is a well-planned scam where victims fall for free gifts or prizes, but it is a little different than usual. Here, the victims are asked to redeem the prizes and gifts using a particular gift card, but it is not where the scam ends. Victims are repeatedly asked to pay using gift cards for purposes such as transit fees, import fees, customs fees, and many more. This way, victims end up paying a lot for a gift or prize which they will never get.
To dodge such scams, here are a few things you can do,
- Do not click on pop up ads that claim you have won a gift or prize
- While on a call with such a scammer, be attentive and look for dubious activities; start by asking your name and address for confirmation as these are random calls, and scammers might not know them in most cases
- Install an Ad-blocker and web tracking software that alerts you when you visit such scamming websites or receive scam mail
- Only use your gift card on a reputed website and redeem them by yourselves
10. The Bot Attack
If you are among those who love exploring the internet and visiting shady websites, you might end up with scammer's bloatware on your device. Most common on Android and computer devices like Windows, which are open source, scammers only need one click from you to install their special software in the background.
This software (bot) looks into your entire system for activated gift cards and automatically shares the information with the scammers. To avoid such a scam, you can always install an antivirus and antimalware software that also checks other software for such bad activities.
Frequently Asked Questions
Why do scammers prefer gift card scams?
Gift cards are not easy to trace when they are redeemed in comparison to debit cards and credit cards scam.
Can you get back your gift card money after being scammed?
After being scammed, if the money is not yet deducted or used by the scammer, you can call the gift card company and ask if they can refund or issue a different gift card. In most cases, it helps if the seller has a policy for a refund for such happenings.
Can gift cards be traced?
Gift cards that are linked to credit and debit card networks such as MasterCard can be traced to an extent. However, single-store gift cards cannot be traced in most events.
Conclusion - Gift Card Scams
Gift card scams have become quite popular, and there are different ways scammers use them to employ. The most infamous among these scams are posing as government officials such as IRS, fake tech support, and the best deals on resale websites.
Only a few preventive measures can help you dodge such scams and use your gift card for your own purposes than losing them entirely to the scammers.
Have you ever been scammed? Let us know your stories in the comment section on what type of scams you have come across and how you dodged them?
