When it comes to gift cards, consumers should be aware of scams and take the necessary precautions to protect their money. Gift cards are a popular present during the holiday season, but they can also be a prime target for scammers. Here are some tips to help you avoid becoming a victim of a gift card scam.
How do gift card scams work?
Gift card scams begin by pressuring victims into buying a gift card. Then, scammers trick their victims into revealing the gift card number and PIN, which the scammers immediately redeem. Gift card scammers often gain their victims’ confidence by pretending to be someone else, such as a government employee, a family member, or a romantic interest.
Why do scammers want gift cards instead of credit card numbers?
Gift card fraud is anonymous, nearly impossible to reverse, and gets immediate results. Fraudulent charges on credit cards can be canceled, but gift card charges can’t. Paying with gift cards is like paying in cash — once it’s gone, it’s gone for good.
What to do if you’ve been part of a gift card scam?
If you’ve been a victim of gift card fraud, contact the company on the gift card right away. The company can add the scammer to a registry of known gift card scammer numbers, and they may be able to compensate you. Keep the card and the receipt handy, if you still have them.
How to avoid gift card fraud?
The first way to avoid gift card scams is to buy only from retailers you trust, and avoid buying gift cards secondhand or from auction sites. When you do buy a gift card, read the terms and conditions, and keep track of your receipts.