Common Gift Card Scams and How to Identify Them

gift-card-scam

In the last few years, gift card scams on the rise as gift cards are not easy to track.

If someone asks you to pay for a product or service with gift cards then most probably it’s a scam.

Usually, there is no way to check the balance and find who and where used the gift card. Gift card issuing companies will also not disclose any information about it.

Some reasons why gift cards are the favorites of scammers:

  • It’s easy to use and send to another person.
  • It can be used to buy expensive products and services.
  • Using the P2P platform can be exchanged for real money.
  • Gift cards are anonymous so scammers don’t need to disclose their identity eg. Bank details.
  • Once you share your gift card code there is no way to do a chargeback or get money back.
  • There is no easy way to track gift cards and the person who redeemed it

Here is a few most common gift card scam:

1. Threatening in the name of owed taxes and unpaid bills:

They will threaten the victim by claiming that they owe taxes or unpaid bills.

And stress that victims must bills as soon as possible to avoid legal action.

2. Won a big prize

Informing victims that they won a big prize or lottery and to receive the prize they ask for personal information from the victim and also for a deposit.

3. Job or Job Profile

These cybercriminals act as placement company representatives and contact victims to offer jobs in foreign countries and ask for payment in gift cards / Perfect Money vouchers for making a job profile.

4. SWIFT bank transfer

A scammer will befriend the victim and tell the victim that they sent a swift transfer to the victim.

Then the scammer will send a phishing email which looks like an email from the bank to the victim claiming that they received a swift transfer (usually a big amount) and to receive the payment victim has to pay a transfer/deposit fee in form of a gift card or Perfect Money voucher.

Note: Banks never ever will ask for any payment in the form of gift cards or e-currencies, there are no fees for receiving a SWIFT transfer and intermediary banks deduct fees from the received amount so the user doesn’t require any transfer or deposit fees.

5. Tech support

Scammers call victims and claim that they are a representative from the tech support department of some popular company and ask for payment in the form of gift cards.

6. Investment offer with unusual returns

Offering investment with unusually high returns and asking for payment in the form of gift cards or cryptocurrencies.

How to stay safe and identify gift card scams?

User awareness is the most important part of the battle against gift card scams:

  • DO NOT share your gift card code with anyone, especially with people whom you don’t know.
  • Govt offices/officials never ask for payment in the form of gift cards.
  • Companies do not ask for gift card payments over the phone or email
  • Job placement companies do not accept payments in gift cards.
  • Banks do not accept/ask for payment in the form of gift cards.
  • Use the gift card as soon as possible or store it in a safe place.

Follow these tips to stay safe and spot the scams

For more information and reporting gift card frauds check this article

If someone referred you to our websites and asks you to purchase gift cards or vouchers in exchange for service or good, it may be a scam.

If you have more questions or need help, please contact us.