Beware! The Rise of Gift Card Scam & How To Safeguard Yourself  

Gift cards and digital payments have transformed the way we eat, shop, and gift our loved ones! Gone are the days when we used to go out and find a thoughtful, personalized, and out-of-the-box gift for your special ones as today, you can present them with a gift card which allows them the opportunity to choose a gift for themselves and get whatever they like! Yet, alongside the surge in gift card demand, there has been a corresponding rise in gift card scams.

Gift cards increase brand awareness, boost brand sales, and acquire more customers in addition to offering you the flexibility and convenience of gift selection. While it wards off the pressure of selecting a perfect gift, it is also one of the most convenient gifting options.

Even though gift cards create a win-win situation for both customers and brands, there have been reports of numerous gift scams that deceive customers and lead to huge monetary losses.  

Here are some alarming facts- 

• In a 2022 AARP survey, 34% of U.S. adults reported being targeted by scams requesting payment via gift card. 
• Among those targeted, 24% ended up purchasing gift cards and sharing the activation numbers with scammers, highlighting the effectiveness of this fraudulent tactic. 
• Government impersonation, lottery/sweepstakes, and advance fee loans are at the top of the list of different types of scams.  

Gift Card Scam – A Booming Trend  

While the concept of gift cards has made gifting easier, it has not spared its customers from the menace of gift card scams and falling prey to fraudsters. The scam starts from ‘spear-phishing’ where the scammers already have detailed information about your online activities and access to financial details.  

In some cases, the scammers send you an email that looks as if it is sent from an authentic organization like a government agency or a technical support team. They will then ask for your PIN or implore you to acquire a gift card, scratch the panel, and send the unique number to get your money back.  

These cards are generally untethered to identities, easy to convert to cash or products, and difficult to trace. Also, these don’t fall under regulations like credit or debit cards. That’s how fraudsters use different ways to scam people. 

Tactics Used by Scammers  

There are different ways in which scammers manipulate customers and convince them to buy gift cards. They stress the urgency to buy the cards by telling them that they own a fine or need a PIN to resolve the issue or need financial help for an emergency. To be precise, some tactics used by the spammers are –  

• They create a sense of emergency. 
• They pretend to be authoritative organizations like government agencies and technical team representatives.  
• Enticing the customers with gifts, offers, and financial rewards. 
• Offering emotional triggers. 

Although, all these tactics are quite common but over the years, the spammers come up with new ways to fool people. That’s why one should be aware that no government organization asks for gift card details or the PIN code of your accounts.  

Common Gift Card Scams – A Reality Check 

There are different types of gift card scams, which include gift cards from Target, Apple, Google Play, Walmart, eBay, and Amazon. Some gift cards have fake barcodes that may trick you into revealing sensitive information like your PIN code, bank account number and more. To sum up, we can categorize these scams in the following manner-  

1. Government Agency Impersonation 

Many times, the scammers pose as government officials and ask you to clear your fines or pending taxes. They may also stress the urgency to pay for it and threaten you with serious consequences.

However, it is important to be aware that no government agency asks for payment through gift cards and hence, you should be cautious not to reveal any personal information or details about your bank account or PIN code number to anyone.  

If you feel something is fishy, it is better to confirm with your account manager using the official contact number.  

2. Tech Support Scams 

Sometimes, the fraudster pretends to be a technical support personnel and asks you for remote access to your desktop or laptop. They will tell you that your system has encountered a technical issue that needs immediate attention and once they have access to your system, they install malware or steal sensitive information.  

Make sure to confirm the identity of the caller before revealing any information.  

3. Emergency Requests 

In these types of scams, the caller would pose as your friend or relative who needs immediate help due to an emergency. They may tell you that they are stranded in a foreign country or in a medical emergency.

To save yourself from this gift card scam, it is important to verify these requests through various channels so that you don’t fall prey to their trap.  

4. Physical Gift Card Tempering  

In some gift cards, the barcode scanner is fake and may not even work properly. In the case of scratch cards, ensure that the scratch panels are intact otherwise the card will not have any balance when you plan to use it! 

Most importantly, you should go for a reliable company or brand to choose a gift card. Although the Apple gift card scam was also in the news, it is always better to be cautious and choose a trustworthy customer care executive and communicate with them.  

5. Hackers  

Sometimes, hackers also use internet boots to look out for valid gift cards that have activated balances. In case you are not using your gift card for long, these scammers target them and use it for their benefit! 

The best thing is to use the balance as soon as possible.  

What to Do If You Gave a Gift Card to a Scammer? 

Firstly, don’t panic! If you realize that you’ve already given a gift card to the scammer, take immediate action and try to minimize your loss by taking these steps-  

1. Report the Scam Immediately  

As soon as you realize that you’ve fallen into the gift card scam trap, contact your gift card company and report the spam immediately. Mention complete details like store receipt, card number, and other details that you’ve shared with the spammer.  This information will help the company to track down the spammer and investigate the matter properly.  

2. Request for Refund 

If you’ve been a victim of a gift card scam, you can contact the company and ask for a refund. You have to provide them with the necessary details and follow the procedure. Provide them with all the details that would help them follow the necessary procedure as per their company policy. Most likely, you will get a refund.   

3. Lodge a Complaint 

If you would like to take legal action against the scammers, you can file a complaint with the relevant organization. Every country has a separate department to resolve these crimes, you can get in touch with the legal authorities so that you can resolve the matter quickly and get your money back.  

4. Check Your Accounts 

Once you know that you’ve been scammed, keep monitoring your bank accounts including your credit and debit card so that you know in case of any unauthorized transaction. If you notice anything suspicious, immediately report it to your bank so that action can be taken.  

If you follow all these steps, it is more likely that you can save yourself from trouble. First, report the scam, request a refund, file a complaint, and monitor your bank accounts.  

How to Avoid Gift Card Scams in Online Purchases — Quick Tips 

It is important to be aware and save yourself from the gift card scam by following these simple tips-  

1. Stick to Reputable Stores 

Always go for renowned names and brands while buying a gift card as these companies have been in the market for a long time and have a reputable name.

Even if you fall into the trap of scammers, these reliable companies will assist you properly unlike unauthorized sellers and online auction sites.  

2. Inspect the Gift Card 

Before buying, always make sure that the physical gift card is free of any damage or tempering. Check for scratches, exposed PIN codes, torn edges, etc. In case you notice anything, always call out or go for a reputable brand that is open to answering all your questions and is willing to follow up in case of any issues.  

3. Keep a Copy of The Card and Store Receipt 

It is imperative to keep a copy of your gift card and its receipt for your personal records. This would be of great help in case of some mishappening. You can provide all the details to your concerned company and legal authorities if you are trapped in a gift card scam.  

4. Never Share Gift Card Information 

Beware of unsolicited messages or calls and never reveal sensitive information to anyone new and unreliable.

Government organizations, legitimate companies and sellers never ask about this kind of information in the first place. If you feel suspicious, always check with the official personnel from the company or wait before revealing the information.  

Common Tactics Used in Gift Voucher Fraud 

As mentioned earlier, fraudsters come up with new ideas and different ways to get away with sensitive information and use it to scam people. Whether it is Amazon gift card scams or Apple gift card, the scammers used shrewd ways to fool people and get away with important information.  

Their main tactics include impersonating well-known organizations or government agencies so that people don’t hesitate to reveal information. They also send emails with company logos and professional language that can deceive anyone! By creating this background story, they would request you to purchase a gift card.  

Another tactic includes playing with people’s FOMO (Fear of Missing Out). By enticing them with exquisite deals and exciting offers, scammers compel people to buy gift cards. They may also stress the limited available and one-time offers and may manipulate you with impulsive purchases.  

To counteract all this, it is important to use your common sense and try and verify all these demands and requests before giving in too much information. Also, be aware that no renowned company or government organization would ask for such important details through random calls.  

Preventing Gift Voucher Scams 

Staying vigilant is of utmost importance. Save yourself from the risk of getting into a gift card scam by – 

1. Verifying Purchase Requests 

Always verify the source of the gift card request. Is the company reliable? How will I benefit from this purchase? What information do I have to reveal? Is the concerned person genuine? Try to find answers to all these questions and then go ahead.  

2. Be Cautious While Reveling Personal Information 

Be careful while revealing important details to the personnel concerned. These days scammers use different tactics to get sensitive information like bank account details, PIN codes, etc.

Through various questions by creating a situation of emergency. Use your mind and be aware to first find the source and if it is reliable then only reveal the information.  

3. Attention to Detail 

If you receive an email or a call, always pay attention to the details and check if the caller is genuine or not. Make an extra effort to find out about the source of the information and its credibility before revealing your important details to an unknown person.  

4. Report Anything Suspicious 

If you feel anything fishy, don’t hesitate to report it to the legal authorities or officials to save yourself from a bigger blunder. It is important to be cautious at every step especially if you know that these gift card scams are quite common these days.  

5. Cyber Insurance in Gift Card Fraud – Why It Is Important? 

If you want to keep yourself safe from cybercrimes and gift card scams, cyber insurance is a great option. While scammers use new tactics and different ways to fool people, it is important for people to safeguard their privacy by opting for cyber insurance.  

It covers different types of cyber risks, such as data breaches, fraudulent transactions, etc. Hence, if you go for this insurance, you’ll be saved from the gift card scams by helping you recover from the lost funds and addressing various legal issues if you are stuck in a scam.  

Conclusion 

Gift card scams have become so common that people often think before opting for this fun and easy gift option. While it makes gifting simpler, it also opens doors to scammers and frauds due to its ability to get converted to cash easily.

However, if you are aware of how to manage your gift card and keep your personal information protected, you can save yourself from these scammers.  

If you feel that someone is trying to gather information from you, you should always be cautious to check before giving away your bank account number or other sensitive details.

Also, if you feel that you are scammed, immediately report to the company and get in touch with the legal authorities which can save you from heavy losses.  

Knowledge and awareness are the key to safeguarding yourself from these frauds while enjoying the perks of gift cards!