Gift cards are a favorite for gifting – they're easy to buy, convenient to use, and loved by recipients. As their popularity grows, so does the risk of falling victim to scams. Scammers are constantly finding creative ways to target both buyers and recipients. Here's how to identify these scams, protect yourself, and enjoy the convenience of gift cards without worry.

Common Gift Card Scams

The IRS iTunes Scam

• One notorious scam involves fraudsters posing as IRS agents, claiming you owe back taxes. Victims are pressured to pay via iTunes gift cards. This scam has been so prevalent that retailers like CVS have posted warnings at checkout screens.

Gift Card Number Scams

• Scammers tamper with gift cards displayed in stores by recording the card numbers. Once the cards are activated, they drain the balance before the recipient can use them.

Imposter Scams

• In this scam, fraudsters pose as relatives or friends in dire situations, urgently requesting money through prepaid gift cards. They often target older adults, making the plea more convincing by using the real names of family members.

How to Protect Yourself

Against IRS iTunes Scams:

• If someone claiming to be from the IRS demands payment via gift cards, hang up immediately.
• Please do not respond to emails requesting gift card payments; delete them.
• Remember: The IRS will never ask for gift card payments.

Against Number Scams:

• Only buy gift cards with covered PINs and check for signs of tampering.
• Purchase directly from retailers' stores or official websites instead of public racks.

Against Imposter Scams:

• Verify the caller's identity by contacting your relative or friend directly.
• Never provide gift card numbers over the phone or the Internet.
• Remember, legitimate agencies or law enforcement will never request gift cards as payment.

General Tips to Stay Safe

Be Cautious Where You Buy

• Purchase gift cards directly from the issuing retailer or trusted platforms.
• Avoid public auction sites or shady online marketplaces.

Guard Gift Card Information

• Keep PINs and numbers private. Never share these details, especially during third-party balance checks.
• Avoid selling gift cards through unverified platforms.

Report Suspected Fraud

• If you suspect you're a victim, contact local law enforcement or the company that issued the gift card.
• Check resources like the IRS Consumer Alerts or Federal Trade Commission (FTC) websites for updates on scams.

Final Thoughts

Gift cards are a thoughtful, practical gift, but scammers are eager to exploit their popularity. By staying vigilant, understanding common scams, and following the tips above, you can protect yourself and your loved ones from fraud. This holiday season – and year-round – enjoy the convenience of gift cards without falling victim to scams. Stay informed, stay cautious, and keep your gifting experience joyful and worry-free!