How To Spot and Avoid Gift Card Scams

Last year, my aunt got a call from someone claiming to be from Amazon. They told her she had won some free items but would have to pay for delivery herself. Then they asked her to buy an Amazon gift card and send them the code to pay the delivery fee. Thankfully, she was suspicious and called me before doing anything. Of course, it turned out to be a scam, but many others aren’t so lucky. 

Gift card scams are becoming more common, and scammers are getting creative. But if you know what to look out for, you can avoid becoming a victim. 

In this article, I will talk about how you can spot common gift card scams and avoid them. When you have this insight, it will help you protect your funds from fraudsters. First, let’s start with what gift card scams are and how they work. 

What are Gift Card Scams?

Gift card scams happen when someone tricks you into buying gift cards and sending them the codes. 

Scammers pretend to be someone trustworthy, like a company, government agency, or even a family member. They usually ask for payment using gift cards because once they have the codes, they can spend the money quickly. Unlike bank scams where accounts can be frozen and money can be retrieved, it is nearly impossible to retrieve the funds from a gift card scam. 

Gift card scams can work in different ways but they usually follow the same pattern. A scammer contacts you out of the blue, often through a call, email, or text message. They might say you owe money, have won a prize, or need to help a friend in trouble. Then, they’ll instruct you to buy specific gift cards and give them the card number and PIN. Once they have those codes, they cash in the gift cards or sell them to others.

How to Spot Common Gift Card Scams

It’s not always easy to tell when someone is trying to scam you. Scammers know how to trick people into thinking their situation is real. But if you know what signs to watch out for, you can avoid falling for their tricks. 

Here are some common gift card scams:

1. Urgent payment scam
2. Prize or lottery scam
3. Friend or family scam
4. Online shopping scam
5. Deals and discount scam
6. Gift card code generator scam

Now, let’s talk about these scams and how you can spot them. 

1. Urgent Payment Scam

In this gift card scam, someone pretending to be from a company, government agency, or utility service contacts you. They tell you that you owe some money, and if you don’t pay right away, you will be penalized. The penalty may be your service getting cut off or your account being frozen. Then they insist you pay with gift cards to avoid the penalty. 

How to spot it: No legitimate company or government office will ever ask for payment with gift cards. If you get a call or message demanding this, it’s a scam. Hang up or delete the message. 

2. Prize or Lottery Scam

This scam is all about getting you excited. You’re told you’ve won a prize or a lottery, but first, you have to pay some fees or taxes using gift cards to claim it. The scammer may say this is standard procedure, but it’s a trick to get your money. A good example of this is what happened to my aunt. 

How to spot it: Real prizes or lotteries don’t ask for payment upfront. If someone asks you to pay with gift cards to receive your prize, it is a scam. Block the number or report the message.

3. Friend or Family Scam

This scam isn’t actually perpetrated by someone you know but by a scammer pretending to be a friend or family member. Usually, they might say they’re in trouble and need your help right away. They ask you to buy gift cards and send them the codes so they can get out of a sticky situation.

How to spot it: If someone you know is asking for help through gift cards, be suspicious. Contact the person directly to confirm if it’s really them. Scammers often fake being someone you trust to get you to act quickly.

4. Online Shopping Scam

This scam happens when you try to buy something online. The scammer offers you a product at a good price but insists you pay with gift cards. Once you send the codes, the seller disappears, and you never receive the item.

How to spot it: Legitimate sellers usually accept regular payment methods like bank transfers, debit/credit cards or PayPal. If gift cards are the only option, then such a seller cannot be trusted.

5. Deals and Discount Scam

This scam usually targets people looking for great deals on gift cards. Scammers offer discounted gift cards through websites, social media, or email, claiming you can get more value for your money. For example, you may be asked to pay $50 for a $100 gift card. But once you pay, you receive a card that is either fake or has no balance. By the time you realize, the seller will be long gone.

How to spot it: If a deal seems too good to be true, it probably is. Always buy gift cards from trusted retailers or official websites. Avoid third-party sellers offering huge discounts, as scammers often use these fake offers to entice you. 

6. Gift Card Code Generator Scam

Gift card code generators promise to generate free gift cards for you but they may be scams in disguise. To generate the free codes, you’ll be asked to download software and enter some personal information. However, these codes are fake, and the software might infect your device with malware, stealing your data instead of giving you a gift card.

How to spot it: There’s no such thing as a legitimate gift card generator. If you come across a website or app offering free gift card codes, it’s a scam. Stick to official retailers, and never give out your personal details in exchange for supposed free codes.

Tips to Avoid Falling for Gift Card Scams

Gift card scams can be tricky, but knowing how to protect yourself can make all the difference. Scammers rely on catching people off guard, so the more prepared you are, the better. 

Here are some tips to help you avoid falling for gift card scams:

1. Avoid sharing gift card codes: Never share your gift card codes with anyone you don’t know or trust, no matter who they claim to be. Once you give someone the code, they can use the funds immediately, and you won’t be able to get them back.
2. Double-check before helping someone: If a friend or family member contacts you asking for help through gift cards, pause. Take a moment to call them directly or use another way to verify their story. Scammers often pretend to be someone you know to get you to act quickly.
3. Be wary of unsolicited offers: If someone contacts you out of the blue, claiming you’ve won a prize, lottery, or sweepstakes and asking for gift card payment, it’s a red flag. Real prizes don’t come with fees or taxes that need to be paid through gift cards.
4. Stick to trusted gift card sources: Always buy gift cards from trusted sources like official websites, reliable gift card trading platforms, or well-known stores. Avoid buying from third-party sellers, especially if they’re offering huge discounts. If the deal seems too good to be true, it’s likely a scam.
5. Don’t click on suspicious emails or attachments: Scammers often send fake emails pretending to be from trusted companies. These emails may have links or attachments that can steal your information or lead you to a scam site. Always verify the sender and avoid clicking on anything that seems suspicious. A good way to identify phishing emails is to check for spelling errors in the body of the mail. 
6. Verify URLs and check security: When shopping online or visiting websites related to gift cards, always check the URL to ensure it’s correct and secure. Look for “https://” at the beginning of the web address. If the site looks suspicious or the URL doesn’t match the official company’s website, leave the page immediately.

Conclusion

In conclusion, gift card scams can happen to anyone, but with the right knowledge, you can avoid becoming a victim. By recognizing the warning signs and taking steps to protect yourself, such as verifying requests and sticking to trusted sources, you can keep your funds safe. If you’re ever in doubt, always take a moment to double-check.

For peace of mind and a secure experience, be sure to buy your gift cards from trusted gift card platforms like Nosh. On the Nosh platform, you get different brands of gift cards at cheap prices and can also sell your unused gift cards at the best rates. Sign up now to start trading.