The 11 Worst Gift Card Scams You Didn't Know About (Until Now)

Are You The Target of a Gift Card Scam?

When Kim Grove received an email from Amazon alerting her to fraud on her account, she acted quickly. But after calling the phone number listed in the email, Kim watched as the Amazon representative “accidentally” refunded her more than $10,000. 

In order to reimburse the overpayment, Kim was instructed to purchase Apple gift cards and read out the numbers on the back. It was only after sending over $11,500 in gift cards that Kim realized the whole thing was a scam [*].

Gift card scams have skyrocketed in the past few years. According to the latest data from the Federal Trade Commission (FTC) [*]:

Americans lost over $228 million to gift card scams in 2022 alone.

Yet, despite most people knowing that legitimate companies won’t request payment via gift cards, millions still fall for common gift card scams. 

In this guide, we’ll explain how gift card scams work, the latest techniques that scammers are using, and what to do if you’ve sent gift cards to an imposter.  

What is a Gift Card Scam? How Does It Work?

Gift card scams occur when fraudsters trick you into buying gift cards or prepaid cards and sharing the information on the backs of the cards with them. Scammers want gift cards because they’re easy to purchase, nearly impossible to trace or refund, and can be treated as cash. 

The Better Business Bureau (BBB) reports that the average consumer loses $700 in this type of scam, with elderly victims losing the most [*].

What makes gift card scams especially dangerous is that fraudsters can tailor their scams to different companies or gift card issuers, such as:

• Google Play gift card scams
• eBay gift card scams
• Amazon gift card scams
• Steam gift card scams
• Visa gift card scams

Despite the different angles, most gift card scams follow a similar pattern. Here’s how a typical gift card scam plays out: 

• Fraudsters contact you pretending to be a company, agency, or person whom you trust. Scammers often impersonate big companies (knowing that you trust their recommendations) — such as Amazon, your bank or utility company, or even your boss. Many gift card scams happen over the phone because imposters know they can get you to stay on the line while you purchase gift cards and share the numbers and PINs.
• Next, they create an urgent situation. Scammers want you to act without thinking by scaring you with claims that your bank account was compromised, you’re behind on a payment, or you were scammed. 
• No matter what the situation, the solution will be to send them money via gift cards. Scammers will often keep you on the phone and tell you exactly which gift cards to buy (Amazon, Target, Google Play, etc.).
• The caller asks for the gift card number and PIN. This information is typically on the back of the card, and it gives them instant access to the money on the card.

The bottom line: If you’re told to pay with gift cards, it’s a scam. Legitimate companies will never demand (nor typically accept) payment via gift cards. The moment someone asks for a gift card payment, you should hang up or delete the email.

The 11 Latest Gift Card Scams (and How To Avoid Them)

1. Imposters demanding gift card payments over the phone
2. Scammers sticking fake barcodes on the backs of gift cards
3. Fake gift card activation websites and phone numbers
4. A friend or family member “in need” who requests gift cards
5. Overpayment and refund scams that require gift cards
6. Cashiers scamming gift card users and buyers
7. Romance scammers asking for gift cards
8. Scammers pretending to be your boss or colleague
9. “Balance check” phone calls when selling a gift card
10. Gift cards required to redeem a prize

According to AARP, over 73 million Americans were targeted by gift card scams in 2022 [*]. 

Here are the latest scams you need to know about (and how to avoid them). 

1. Imposters demanding gift card payments over the phone

The most common type of gift card scam happens over the phone. Fraudsters call and pretend to be from a company or government agency that you know and trust, such as the Internal Revenue Service (IRS), Social Security Administration (SSA), or your utility company. 

Next, they claim you’re overdue on a payment or owe money — and that the only way to stay out of trouble is to pay them with gift cards. 

Warning signs and how to avoid this gift card scam:

• The caller claims to be from a government agency or large organization. Most government agencies won’t call you unless you request them to (or first reach out through other methods). If someone calls you, ask for their name and reference number — then hang up and call the organization back via its official phone number.  
• They want you to pay with gift cards for a service that should accept other forms of payment. Any government agency or company will accept more traditional forms of payment, such as credit cards or bank transfers.
• They don’t know many (or any) specifics about you or your account. Even if they know information like your Social Security number (SSN) or account number, it could still be a scam. Fraudsters can buy this information on the Dark Web. 

💡 Related: How To Identify a Fake Social Security Scam Call →

2. Scammers sticking fake barcodes on the backs of gift cards

Gift cards bought from stores can be tampered with before you even purchase them. One common scam involves fraudsters applying fake barcodes to the backs of gift cards in stores. 

Scammers may also scratch off the material covering the card’s number and PIN and wait for you to activate the card. When the gift card is activated, the money either goes to the scammer’s gift card (from the fake barcode) or is available to them through the stolen number and PIN.

Warning signs and how to avoid this gift card scam:

• Signs of tampering. Look at the backs of gift cards before you buy them, and check to see if a barcode sticker has been affixed over the original one. You should also make sure that the part of the gift card displaying the gift card number or PIN hasn’t been scratched off.
• Confirm the balance, and hold on to the gift card receipt. Ask the cashier to check your balance and keep your receipt. This can act as your proof if you need to dispute the card. 

3. Fake gift card activation websites and phone numbers

Many companies have websites or phone numbers that allow you to check your gift card balance. But scammers have started creating fake websites that show up when you search for balance checking sites. If you enter the gift card number and PIN on these sites, scammers get access to your balance. 

Warning signs and how to avoid this gift card scam:

• Verify the URL before entering your gift card information. Make sure you’re on the company’s official website, and don’t blindly trust the first search results that come up when looking for a balance checking site. In one example, Google even approved an ad for a fake Target gift card checking website [*].
• Call the activation number on the card rather than going to the website. Whenever possible, use the official contact information on the card rather than calling phone numbers that appear in your search results. 
• Use Safe Browsing tools to warn you if you’re on a fake website. Aura’s online security tools can warn you if you’re entering a potentially dangerous website. You can even try Aura free for 14 days and see if it’s right for you. 

4. A friend or family member “in need” who requests gift cards

In this scam, cybercriminals hack email or social media accounts and send out messages to friends and family members. In the message, they pretend to need financial help for buying a gift card as a birthday gift for a mutual friend or family member.

The hacker will ask the recipient to buy a certain type of gift card and then send the gift card information to a different email address.

Warning signs and how to avoid this gift card scam:

• The tone or writing style of your “friend” or “family member” feels off. Trust your gut — especially if the message is clearly trying to create a sense of urgency. 
• Double-check the legitimacy of the message with its purported sender. Reach out (by using another format, like a text or phone call) to the person who sent you the message. This way you can confirm whether the person really needs the gift card — or if they’ve been hacked.

💡 Related: Have I Been Hacked? How To Recognize and Recover From a Hack →

5. Overpayment and refund scams that require gift cards

This is a more elaborate scam that starts with a notification of a fraudulent purchase, via either text or email. In order to cancel the purchase, you’re instructed to call a phone number. 

But while it seems like you’re on the line with an official customer service representative, it’s actually fraudsters conning you into believing that they’ve refunded too much money to your account. In order to reimburse the company (and stay out of trouble), they demand that you purchase gift cards for the amount. 

Warning signs and how to avoid this gift card scam:

• A customer service representative “accidentally” sends you too much money. This is an immediate red flag. If this is the case, hang up and contact the company directly to make sure it wasn’t a legitimate mistake. 
• Companies will never ask for payment in gift cards. Gift cards are meant for gifts — not to pay for goods or services. 

6. Cashiers scamming gift card users and buyers

Occasionally, the cashier at a store is a scammer. There are two ways that this scam commonly occurs. First, a cashier will swap out your card for an already-used card when activating it. They’ll keep the new card and give you one that has no balance. 

In other cases, when using a gift card, the cashier will swap it for an empty one and tell you that there’s no remaining balance on your card. 

Warning signs and how to avoid this gift card scam:

• Keep an eye on cashiers when buying or using gift cards. Make sure that the card isn’t swapped at any point during the checkout or transaction. 
• Keep your receipt and record of balance. Your receipt will show the gift card number (or at least enough identifying digits to see if you’ve been scammed). Check the receipt against the card you’re given. 

7. Romance scammers asking for gift cards

In romance scams, fraudsters create fake online profiles to “catfish” users on dating apps or social media sites, and then trick victims into thinking they’re romantically interested in them. In many romance scams, scammers will request gift cards as presents — to help with their child’s birthday, or to buy attractive clothing. 

According to the latest data from the FBI, Americans lost over $735 million to romance scams in 2022 [*].

Warning signs and how to avoid this gift card scam:

• Never send money to someone you haven’t met. This is the golden rule of avoiding online scams: If you haven’t met in person, do not send anyone money or gift cards. 
• Learn to spot the warning signs of an online dating scammer. Fraudsters use stolen photos and quickly profess their love — even if you’ve never spoken over the phone, had a video call, or met in person. 

💡 Related: How To Spot a Scammer on a Dating Site →

8. Scammers pretending to be your boss or colleague asking for gift cards

In this scam, victims receive a fake text message claiming to be from their boss or colleague — asking them to buy gift cards for a client. The sender will say it’s an urgent request and that they’re busy in a meeting and can only communicate via text. 

If you purchase the gift cards under the assumption that you’ll be reimbursed, your “boss” or “colleague” will request that you send them photos of the numbers and PINs on the backs of the cards — giving scammers easy access to the cards’ balances.

Warning signs and how to avoid this gift card scam:

• Be wary of any communication from an unknown number or email address. Double-check the contact information that you have for your boss or colleague, andreach out to them via another channel that can’t be compromised. 
• Don’t make company purchases using your personal cards. If you haven’t been asked to make purchases for your company before and don’t have a way to expense it, it’s probably a scam.

9. “Balance check” phone calls when selling a gift card

This scam targets people trying to sell unwanted gift cards for cash. Fraudulent buyers will reach out and request that you contact the merchant to “prove” the balance is on the card. They’ll then initiate a three-way call with an automated line that asks you to input the card numbers and PINs. 

In reality, it’s all fake and the scammers are able to decode the card’s information from the key tones — and drain your balance. 

Warning signs and how to avoid this gift card scam:

• Only sell gift cards on legitimate card-selling websites — for example, CardCash or ClipKard. Avoid trying to sell gift cards on Craigslist or Facebook Marketplace. 
• Use other methods of verifying the gift card balance. If you decide to sell the card yourself, meet the buyer at the store so that you can check the balance in person.

10. Gift cards required to redeem a prize

Another common gift card scam occurs when fraudsters reach out to let victims know they’ve won a prize, sweepstakes, or online giveaway. But in order to redeem the prize, the “winner” has to pay fees with a gift card purchase. Ultimately, it’s all a scam and there is no prize. 

Warning signs and how to avoid this gift card scam:

• Never pay to win prizes. Lotteries and sweepstakes will not ask you to pay to receive a prize that you’ve legitimately won — especially by using gift cards as your payment method.
• If you won a sweepstakes that you never entered, it’s a scam. Ask yourself if you’ve recently entered a giveaway or sweepstakes. If not, you’re likely being targeted for a scam.

💡 Related: How To Spot (and Avoid) Sweepstakes and Lottery Scams →

Did You Send Scammers Gift Cards? Do This!

If you’ve sent scammers gift card information, it’s not the end of the world. While they may be able to steal the total gift card balance, it won’t necessarily put you at risk of further financial fraud or identity theft. 

Here are a few steps that you can take if you’ve fallen victim to a gift card scam:

• Contact your bank and warn them that you may be the victim of fraud. If you sent a scammer payment information to buy a fake gift card, your bank account could be compromised. Contact your financial institution as soon as possible to cancel your accounts and receive new credit and debit cards. 
• File a police report with local law enforcement. This step is often necessary in fraud cases to help get your money back.
• Report the scam to the Federal Trade Commission (FTC). Head to ReportFraud.ftc.gov to report any fraudulent activity or scams in order to help combat this activity. Include as much information as you can, including when you bought the gift cards, contact information from the scammer, etc.
• Report the scam to your state’s attorney general. Similar to the FTC, state attorney generals often investigate larger fraud cases and may be able to help.
• Contact the retailer or gift card issuer. The sooner you report the fraud, the more likely it is that you might be able to get at least some of your money back.

Here’s how to contact the companies and retailers most likely to be targeted by gift card scams:

The Bottom Line: Avoid Gift Card Scams

Gift card fraud is one of the most popular scams right now due to how easy it is to purchase cards — and how difficult it can be to refund stolen amounts. 

Follow these tips to make sure you’re not falling victim to a gift card scam:

• Inspect physical gift cards before purchasing. Check for signs that they’ve been tampered with or that scammers have added their own barcode stickers to the back. 
• Never pay for services or fees with gift cards. Gift cards are not a form of currency that any legitimate company will request in return for services (or to refund overpayment amounts).
• Don’t activate gift cards until you’re ready to use them. This gives scammers less time to steal your balance. Once you activate the card, use it quickly.
• Hang up on unsolicited phone calls. Or, don’t answer the phone unless you recognize the number or are expecting a call.
• Learn to spot the warning signs of phishing emails. Pay attention to the sender email address, and watch for grammatical errors, urgent language, and suspicious links or attachments.
• Block spam and unwanted calls and texts. At a minimum, register your number on the national Do Not Call list by calling 1-888-382-1222 or visiting www.donotcall.gov. You can also look into ways to block spam texts and stop unwanted phone calls.
• Use Safe Browsing tools. These online security tools can warn you if you’re on fake or dangerous websites.

Lastly, for added security, consider signing up for a digital security provider. 

Aura’s all-in-one digital security solution helps you and your family stay safe online with award-winning identity theft protection, the industry’s most reliable (and fastest) fraud alerts, and a full suite of proactive, easy-to-use tools — including a virtual private network (VPN), antivirus software, Safe Browsing, parental controls, and a robust password manager. 

Plus, every adult member on your Aura plan is covered by a $1,000,000 insurance policy for eligible losses due to identity theft. 

Protect your finances and identity from scammers. Try Aura free for 14 days.