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<\/figure>\n\n\n\nHow Gift Card Scams Work<\/h2>\n\n\n\n
There are probably a hundred different ways scammers trick people into giving them gift cards, but here\u2019s the general gist of how these scams play out:<\/p>\n\n\n\n
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- Scammers pose as a trusted source such as a boss, work colleague, recognized brand, bank, or even friends and family.<\/li>\n\n\n\n
- They reach out with some \u201curgent\u201d matter involving a made-up scenario<\/a> that typically either claims you or someone you know is in trouble or needs immediate help.<\/li>\n\n\n\n
- Scammers then instruct you to purchase a gift card (they often specify types, such as Amazon gift cards, Google Play gift cards, or prepaid Visa cards). This can be done either online or in a store.<\/li>\n\n\n\n
- They will then either have you share the numbers and PINs off the back or have you send an e-gift card directly to a specified email address.<\/li>\n\n\n\n
- They quickly redeem the funds and disappear.<\/li>\n<\/ol>\n\n\n\n
What do Scammers Do with Gift Cards?<\/h2>\n\n\n\n
It\u2019s fair to wonder what scammers even do with gift cards, after all, wouldn\u2019t cash be better? While yes, cash is always the end goal, gift cards offer scammers a layer of protection (as we mentioned, hard to trace and impossible to refund). But how exactly do they turn gift cards into money? Well, there are a few different ways.<\/p>\n\n\n\n
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- They sell the gift cards for cash.<\/strong> One of the easiest ways to turn a gift card into cash is to simply sell it for money. This usually involves selling it for less than the face value, but it\u2019s a small fee to pay in the grand scheme of things for the scammer.<\/li>\n\n\n\n
- They buy expensive items and then sell them.<\/strong> If a scammer has convinced you to send over a few hundred dollars worth of gift cards for a site like Amazon, they will quickly purchase items like iPads, which they can then turn around and sell for cash.<\/li>\n\n\n\n
- They launder the cards through fake apps or seller accounts.<\/strong> A slightly more complex way scammers launder gift cards into cash is via apps or seller accounts.\u00a0<\/li>\n<\/ul>\n\n\n\n
For platforms like the Google Play Store, they request gift cards for the platform and then use the cards to spend money on apps they have created to make it look like legitimate income.<\/p>\n\n\n\n
For platforms like Amazon, they create seller accounts and then use the gift cards to purchase their own merchandise, once again turning gift cards into legitimate-looking income.<\/p>\n\n\n\n
When it comes to turning gift cards into real cash, the above ways are the most common, but there are likely other methods as well. There are plenty of things you can say about scammers (all bad), but one thing they do seem to have is plenty of creativity when it comes to stealing money. <\/p>\n\n\n\n
Common Gift Card Scams <\/h2>\n\n\n\n
Alright, so now you know why scammers like gift cards and what they do with them, but in order to really understand gift card scams, it\u2019s important to look at the most common scenarios they use to trick their victims.<\/p>\n\n\n\n
Compromised Bank Account Gift Card Scam <\/h3>\n\n\n\n
Starting with a gift card scam that aims for a big haul, scammers will call you, claiming to be from the fraud department, alerting you that your account has been compromised. They will then convince you that you need to immediately transfer your balance into prepaid gift cards, which can then be moved to a new, secure account. <\/p>\n\n\n\n
They\u2019ll say all you need to do is get as much money as you can on prepaid cards (i.e., Visa or Mastercard) and then give them the information on the card(s) to move into a new account. Of course, they actually just steal all of the money, leaving you high and dry.<\/p>\n\n\n\n
Romance Scams <\/h3>\n\n\n\n
Romance scams are a whole topic in themselves (read all about them here<\/a>), but they are a common setup for gift card scams. Whether it be a supposed love interest who wants to go on a shopping spree or needs help getting a gift for their family member, pretty much any scenario where a romantic partner you haven\u2019t met asks for money or gift cards is most likely a scam. Sorry to say, but in this case, it\u2019s better to break your heart than your bank account.<\/p>\n\n\n\n
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<\/figure>\n\n\n\nGift Card Work Scams <\/h3>\n\n\n\n
Work-related scams are another area that has endless variation, but there\u2019s a specific scenario tied directly to gift cards. Scammers will contact people, pretending to be their boss or a work associate. They will provide a story about how they need gift cards as part of a company event\/giveaway, and ask that you purchase them (generally in the form of e-gift cards that can be sent directly to an email that they claim was set up for the event). They assure you that you\u2019ll be reimbursed, but once again, because they aren\u2019t who they say they are<\/a>, they leave you with a hole in your account in the form of a few hundred bucks.<\/p>\n\n\n\n
Compromised Physical Gift Cards <\/h3>\n\n\n\n
This scam is a bit different, since you often won\u2019t even realize you\u2019ve been scammed until you try to use a gift card you\u2019ve purchased for your own personal use. Here, scammers will actually steal numbers and PINs from gift cards in stores, replace the silver security sticker, and then wait for the card to be activated. <\/p>\n\n\n\n
As soon as they are alerted (they often set up a way to be notified), they use the funds on the gift card, unbeknownst to the gift card owner. The only way you\u2019ll find out you\u2019ve been scammed is once you go to use the gift card and the balance is $0, despite you never using it.<\/p>\n\n\n\n
Specific tips to help avoid this type of scam are to see if the silver security cover appears to be tampered with (or has been replaced by a similar sticker) and to register your gift card as soon as possible (as instructed on the back of the card). Unfortunately, neither of these methods is foolproof, but they do at least give you a chance to keep yourself from being scammed.<\/p>\n\n\n\n
Giveaway Gift Card Scams<\/h3>\n\n\n\n
While the name of this scam sounds like you\u2019re getting a gift card (there is probably a scam out there that promises that), this scam is actually more similar to the Publishers Clearing House<\/a> scam. Here, scammers convince you that you\u2019ve won a grand prize giveaway, and all you have to do is provide a gift card to confirm yourself and collect your prize. In this case, not only have you been scammed out of giving away a gift card, but you also don\u2019t actually win anything. An unfortunate lose-lose for you.<\/p>\n\n\n\n
How to Stay Safe From Gift Card Scams <\/h2>\n\n\n\n
- They buy expensive items and then sell them.<\/strong> If a scammer has convinced you to send over a few hundred dollars worth of gift cards for a site like Amazon, they will quickly purchase items like iPads, which they can then turn around and sell for cash.<\/li>\n\n\n\n