It is important that consumers are protected when they make gift card purchases, but it is also imperative that consumers are aware of trending scams and educate themselves on how to identify and avoid them.
The Federal Trade Commission (FTC) provides resources for consumers regarding Gift Card Scams. According to the FTC in 2022, nearly 65,000 consumers filed a complaint related to gift card scams, equating to a total loss of $228.3 million. An important reminder for consumers:
Gift cards are for gifts, not for payments. As soon as someone tells you to pay them with a gift card, that’s a scam. Gift cards are popular with scammers because they’re easy for people to find and buy. They also have fewer protections for buyers compared to some other payment options. They’re more like cash: once you use a gift card, the money on it is gone.
If someone calls and asks that you pay them with gift cards, that’s a scammer calling. And once they have the gift card number and the PIN, they have your money.
Scammers may tell you different stories to get you to pay them with gift cards, but this is what usually happens:
- The caller says it’s urgent. They say you have to pay right away or something terrible will happen. They want to scare or pressure you into acting quickly, so you don’t have time to think or talk to someone you trust. Don’t pay. It’s a scam.
- The caller usually tells you which gift card to buy. They might say to put money on an eBay, Google Play, Target, or iTunes gift card. They might send you to a specific store — often Walmart, Target, CVS, or Walgreens. Sometimes they tell you to buy cards at several stores, so cashiers won’t get suspicious. And the caller might stay on the phone with you while you go to the store and load money onto the card. If this happens to you, stop. It’s a scam.
- The caller asks you for the gift card number and PIN. The card number and PIN on the back of the card let the scammer get the money you loaded onto the card. Don’t give them those numbers. It’s a scam. You’ll lose your money, and you won’t be able to get it back.
Contact our office for assistance if you are a victim of a gift card scam or have questions about avoiding or reporting a scam. The Erie County Office of Consumer Protection can be reached by phone at 716-858-1987 or via email at consumerprotection@erie.gov. Submit your Consumer Protection complaint through our website.