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It’s a given – if money is involved, scammers are involved. And scammers love gift cards. That’s because gift cards are tough to trace, and not subject to the same regulations as credit and debit cards.
Yet, gift cards are a great way to reward someone, and give the friend, family member, or employee the means to purchase a truly-wanted gift using the pre-loaded monies on the card.
Here’s how to avoid scammers when you buy gift cards.
What Is a Gift Card Scam?
Basically, a gift card scam occurs when someone loads the card with money, and a scammer finds a way to access that money. If you or someone you know is a victim of a gift card scam, the Federal Trade Commission wants to know about it. The FTC reports that gift card scammers account for 26% of fraud reports the agency investigates.
The FTC noted that reports of gift card scams where people have lost money have tripled since 2017. Many times the scam takes place during the holiday season.
How Do Gift Card Scams Work?
There are two main ways that scammers commit fraud using gift cards.
- Someone asks you to put money on a gift card as a way to pay fees, services or bills, such as monies owed to a utility company or government agency.
- Someone finds a way to learn the numbers on your gift card and uses that gift card information to pay for purchases.
What Gift Cards Are Used in Scams?
Any gift card can be hacked by scammers. No company is exempt, although the “heavy hitters” such as Amazon, eBay, and Google are most…
