Let’s say you get a phone call. The voice on the other end claims to be from the IRS, saying there’s a problem with your tax return. They sound official, maybe even a little threatening. They warn that if you don’t pay right away, you could face fines, legal trouble, or even arrest.
Then comes the demand: “Go to the store, buy a gift card, and give us the numbers on the back.”
Sound suspicious? That’s because it is.
Gift card scams are on the rise, and scammers are finding new ways to trick people into handing over their hard-earned money. Here’s what you need to know to stay safe.
How do gift card scams work?
Gift card scams follow a simple formula: impersonate, scare, and steal.
Scammers often pretend to be someone with authority: government agencies, financial institutions like credit unions, utility companies, fake sweepstakes - or even someone you know, like your boss or a family member.
Next, they’ll create a sense of urgency. They’ll say you owe money or are in some kind of trouble, and the only way to fix it is to buy a gift card and give them the numbers on the back.
Why gift cards? They’re fast, convenient, hard to trace, and once the scammer has the code, the money is gone. It’s an easy win for them and a painful loss for you.
Red flags of a gift card scam
Watch out for these common warning signs:
- Unexpected contact, especially from someone claiming to be an authority figure
- Pressure to act immediately or face consequences
- Being asked to pay with a gift card for taxes, bills, or services
- Requests for the gift card number and PIN
If something feels off, trust your instincts. It’s better to double-check than to fall for a scam.
Who is at risk for gift card scams?
Anyone can be targeted, but scammers often go after people who may not be familiar with how these scams work. Scammers are experts at creating panic and getting you to act fast - that’s why awareness is your best defense. Always remember that a legitimate organization would never ask you to a resolve any matter with the purchase of a gift card.
What to do if you suspect a gift card scam
If you ever receive a message like this, immediately stop all communication with them. Hang up if it’s a phone call, and don’t respond if it’s an email, text, or social media message.
If you’re concerned that the message may be legitimate, visit the organization’s official website and contact them directly using the phone number or email listed there. Never use the contact information provided by the person reaching out.
Staying informed is the best way to protect yourself. Share this article with a friend, family member, or colleague to spread awareness about gift card scams.