Gift cards are a holiday staple—they’re easy to buy, easy to wrap, and always the perfect fit. But this year, they are also a top target for fraudsters. Why? Because gift cards are essentially untraceable cash. Once you load money onto them, it’s almost impossible to get it back, and criminals know this.
This holiday season, you need to be actively aware of scams targeting both the buyer (you) and the recipient (your loved ones). Protecting yourself requires vigilance at the checkout counter and a healthy dose of skepticism in your inbox.
The Digital Threat: When Scammers Demand Payment
The most common and surging gift card scam involves impersonation and extreme urgency. If anyone—literally anyone—demands payment from you in the form of a gift card, you are being scammed.
The Urgency Trap
Fraudsters use high-pressure tactics to get you to panic and rush to the store:
- The Government Impersonator: You get a call claiming to be the IRS, a utility company, or law enforcement, saying you owe back taxes or face immediate arrest if you don’t pay a fine using Target, Apple, or Google Play gift cards. Active Rule: Legitimate government agencies and police will never accept payment in the form of gift cards.
- The Tech Support Scam: A pop-up or call claims your computer is infected (often impersonating Microsoft or Apple). They say they need hundreds of dollars to fix it, and the only “secure” way to pay is by reading the codes from gift cards over the phone. Active Rule: Never give remote access or gift card codes to unsolicited tech support callers.
- The Family Distress: You get an urgent email or text from a “grandchild” or “friend” claiming they’re in jail or stranded and need gift cards immediately. Active Rule: Always call the person back on a known number to verify their story.
The Physical Threat: Checking Out in Store
Even buying gift cards in a physical store can be risky. Criminals are actively tampering with the displays.
The Card Switching Scam
Fraudsters visit stores and carefully remove the protective scratch-off material covering the activation code (PIN) on cards like Visa or Amazon. They record the numbers, place a fake scratch-off sticker back on, and put the compromised card back on the rack.
- Active Fix: When you select a gift card, always inspect it closely. If the packaging looks wrinkled, tampered with, or if the scratch-off strip looks misaligned or unusual, choose another card.
The Verification Scam
Be wary of fake “gift card balance checker” websites. If you receive a text with a link asking you to check the balance of a card you just bought, do not click it. These sites are designed to steal the card number and PIN you enter, allowing the scammer to drain the funds. Active Fix: Only check balances on the retailer’s official website or app.
The easiest way to protect yourself is to internalize this rule: Gift cards are for giving, not for paying debts or fines. If someone asks you to pay them with a gift card, hang up the phone, and delete the message.
