Every day, scammers are figuring out new ways to exploit people and their interests. And gift cards are their trick to scam. That’s why knowing how gift card scams work can save you from a lot of trouble down the line. Keep in mind that it is easy for scammers to exploit people who are simply looking for help.
For instance, these scammers could pose as anyone from government officials to tech support workers, and even friends. However, families and children are often the primary target, as these scams are incredibly quick and hard to track. Thus, this article aims to provide you with the best tools to avoid and protect yourself from gift card scams. So, keep reading!
What are gift card scams?
“The gift card scams refer to a type of phishing electronic scam whereby some fraudsters convince a victim to purchase gift cards and give them the associated codes.”
The intent of those scams is never to buy gifts; rather, the aim is to use the card for fast cash crime. In many cases, scammers create fictitious emergencies or impersonate someone known to you, whose intention is to trick you into acting quickly. Gift cards are a prime target since once they get the code, they can sell them within minutes, leaving tracking impossible.
What happens if you give your card details to a scammer?
- Complete financial loss: Giving away your gift card number and the matching code allows a scammer to withdraw funds instantaneously. There is no allowance for cancellation or stopping them at the issuing stage of the code. When a gift card balance gets wiped clean, there is no option to reclaim this.
- Untraceability: Gift card funds, unlike a bank account, are not tied to a person by name and address. Hence, identification becomes very scant when a scammer positioned to use the funds has no chance of getting caught.
- Non-refundable: The amount will not be refundable in the same way it was issued. Redeem policies are akin to cash for a gift card—once used, the voucher is void.
- Feeling distressed: People tend to feel pretty awful after someone has scammed them. Some would consider it embarrassing or even sad, but it is rational to feel angry. Scammers are professional con artists, so even not for a second put the blame on yourself for such things.
How do gift card scams work?
Initially, a fraudster contacts you using phone calls, emails, texts, or even social media. Moreover, it is common for scammers to take the identity of a significant person, for example, a boss, a family member, or company personnel. Most of these scammers construct a narrative where they claim to be a boss and claim that there is some problem that you have to resolve as soon as possible.
In these kinds of scams, the fraudster will tell the victim that they need to buy a gift card from retail stores like gift cards sold at Amazon or Google. After buying the gift card, they will steal the code from you and get away with the money.
So, always keep in mind that organisations and real people do not ask for payment in the form of gift cards.
Use parental controls to enhance protection
Why do scammers want gift cards?
The reason for the interest scammers have in gift cards is not incidental. So, let’s have a look at the reasons why scammers want to get such gift cards!
- Easily stealable: First, the monetised capabilities provided by gift cards secure their position as a scammer’s favourite. Upon acquiring the card and PIN, it is all too easy to access the money. They do not require a bank account or even a name, making the money far easier to steal.
- Untraceable: Next, it becomes nearly impossible to identify who claims the money as soon as they spend a certain gift card. There are no names, addresses, or other information linked with it, making the identification of the criminal difficult for law enforcement.
- Quick resale value: Scammers are also able to rapidly sell unsolicited gift cards and recover actual cash, which furthers their motivation to pursue them. They exchange these cards often in a matter of minutes, making it even more difficult to retrieve the money.
- Seems harmless: Scammers have learned that the majority of people are comfortable with gift cards. Because many individuals consider them as easy presents for holidays or birthdays, scammers attempt to use this perception of safety to manipulate you into believing there is no risk.
With this in mind, you should always stop, reflect, and discuss with someone you trust before making gift card purchases or sending them to other people.
Common types of gift card scams
Scammers attempt to steal gift cards from you in several different ways. Knowing how they attempt to trick you will help you stay safe. Let’s go over the most common.
i. Government impersonation:
Scammers might act as government employees from places like the IRS or Social Security. Then they act as if you’ve done something illegal or owe them a sum. Then they also give you threat and demand payment via gift cards. Always bear in mind that legitimate state workers would never ask for pay in card form.
ii. Tech support scams:
Moreover, some scammers assert that one’s phone or computer has a virus and propose to fix it. These scammers usually call under the names of well-known companies like Microsoft. Later on, they make the request to purchase gift cards. Such companies never request cards; that is a common statement.
iii. Romance or ‘friend in trouble’ scams:
Apart from these, scammers might fall in love with you and pretend to be a friend. They will ask you about fake emergencies, like they are in trouble, saying the solution is a gift card. Don’t forget to say no and be firm, also consult to an adult before acting on such stories.
iv. Phishing emails or texts pretending to be brands
Likewise, a text or email message that comes from a known sender may not be what it seems. Such texts and emails may offer fake promotions or ask users to buy gift cards. Therefore, ensure that the source is legitimate before clicking on anything.
v. Gaming platform scams targeting kids
Scammers mostly target children who spend a great deal of time on Fortnite and Roblox, as they are popular games. Children need to obtain gift card codes to get skins, coins, or unlock higher-level characters in the games. As a general guideline, when something looks too good to be true, do not assume it is.
How to identify gift card scams?
Understanding how to recognise a scam can save you plenty of your hard-earned money. Scammers tend to leave behind a trail of hints if one pays attention to the details. So, let us go through some common pointers that require your attention.
! Urgency, secrecy, threats: One method that scammers like to use is pressuring people and making them feel overwhelmed. They may state things like, “done immediately.” “You are not allowed to discuss this with anyone,” etc. Some may even go far enough to impose unjust punishments on you for taking a different route.
! Real vs. fake support emails or DMs: Scammers copy logos, business names, and come up with emails and messages out of the blue. So, receiving such emails and messages should ring alarm bells for the reader. They don’t mean any good if they’re selling you a gift card or asking for personal information. Do remember! No legitimate organisations would request gift cards from people.
! Red flags in language and requests: Finally, the communication style of the person should concern you. For example, a scammer may phrase sentences strangely, make grammar mistakes, or even ask for things like sending them the code on a gift card.
How to check if a gift card has been scammed?
If you think a gift card may have been used to defraud you, there are ways that you can check. At this, you can:
❖ Look for tampering or usage alerts: Find out if the card has been tampered with and reveal some sets of numbers. Occasionally, scammers scratch off codes, so you may notice some tampering. Additionally, the store may alert you that the card has been used, without you using the card at the store.
❖ Contact the card issuer: Go back to the caller or the site of the company that issued the gift card. They hold data on whether the gift card has been activated or if there are any actions that have been taken in terms of its usage. They might help you in recovering your funds, which have been wasted, or assist in claiming rightfully owned funds.
❖ Track redemption activity (if available): If offered, these will permit tracking activities of where the card has been used, as well as the date. Some companies provide users with access to the transaction history, especially those issued audit cards and allow them access to the company’s systems. Hence, making it possible to take proactive measures to prevent unauthorised access, if there are control systems put in place to detect such unauthorised actions.
Can I get my money back from a gift card scammer?
Recovering funds from a gift card scam is a hassle in itself. Still, it is possible to take certain steps towards recovering your funds.
First, explain the whole scenario to the issuer of the gift card. When it comes to recovering from scams, time is key. Card issuers might provide supplementary options.
Report the scam to the FTC, local law enforcement authorities, and the issuing company as well. Even if the chances of recovering funds from a scam are not hopeful, the information can protect other people from falling victim to these schemes.
These scenarios suggest that the possibility of preventing the scammer from using the card increases the earlier you act. Also, if any situation seems suspicious to you, they ask you to consult someone wise and report it as soon as possible.
How to avoid gift card scams?
It is important to follow these measures in order to avoid gift card scams. If you take these steps, you will avoid falling victim to most common tricks.
➢ Never share card details via text, email, or DMs: Scammers attempt to lure clients into divulging benign details. While legitimate businesses rarely ask for gift card detail.
➢ Verify claims before sending a card: It is very plausible that one can claim they need a gift card for a variety of offers, so please refrain from acting immediately. Therefore, instruct adults and verify where the entities they claim to work for actually exist.
➢ Only buy cards from trusted sources: Moreover, the best way to minimise your risk of exposing yourself in a scam is to only buy cards from reputable places. Avoid haphazardly purchasing cards from retail websites or proposed online deals that appear sketchy. Reputable sources can minimise your risk of scams.
➢ Teach kids to ask parents before using gift cards: Additionally, you should teach kids to consult you or another trusted adult prior to using a gift card. As scam artists often focus on younger people, they need to understand how to seek assistance in such scenarios.
How to protect your teens from gift card scams
As a parent, you need to be proactive in keeping your teen safe from the ever-growing online scams. One of the prevalent tricks of online con artists is gift card scams, and they specifically prey on the youth. Through the right measures and discussions, you can safeguard your teen from falling into these unpleasant situations.
i. Set purchase approvals with tools like Apple’s Ask to Buy or Google Family Link:
To begin with, you may implement a purchase approval process like Apple’s Ask to Buy and Google Family Link. These platforms put you in control of what your teen purchases, so you are able to approve or disallow purchases that you deem unfit or unsafe.
ii. Block unknown or suspicious links using parental control apps
Moreover, there are control apps like FlashGet Kids that facilitate blocking of suspicious links and websites. With these tools, your teen remains safeguarded from clicking links that can be detrimental. Moreover, owing to this app, you can see live what our kids are doing on their devices and with whom they are chatting.
iii. Educate kids on what scams look like and how to report them
It is equally as critical to inform your children about fraud as it is to warn them about other risks. For instance, show them possible scam emails, especially those seeking gift cards and tell them how they can flag such malicious messages.
iv. Encourage open dialogue about online interactions and digital safety
Last but most certainly not least, allow them to have a breathing space and talk about their daily life, or give them a platform where they can ask you questions without being scolded and report strange behaviour from a user in an online setting.
Conclusion
Even though gift card fraud might be subtle, you know how to spot it now. Remaining careful with the information on the cards as well as the messages received online can help prevent financial troubles.
Moreover, using software such as FlashGet Kids, which blocks dangerous hyperlinks and monitors web traffic, can help protect you even further. Always be on the lookout and ask for help when faced with an uncomfortable scenario.
