What are the Most Common Methods That Scammers Use to Commit Gift Card Fraud?
The problem with fraudsters is that they’re vicious and malicious. They’re not bound by laws or ethics, which leaves them free to deploy a shockingly creative and ruthless playbook of scams.
From classic government or tech support scams to sophisticated overpayment scams designed to subtly trick you or your employees, their methods are dirty, deceiving, and constantly evolving. Now, there have been a few times that people have flipped the script on scammers to hilarious results, as we see in the video below:
…but, most gift card scammers are a little more sophisticated. So, let’s discuss some of the most common tactics scammers use to drain gift card balances and turn your revenue into their personal slush fund.
The goal of a gift card scammer is to trick you into signing over a gift card balance. The specific tactics they use can vary based on the situation, though. Here are a few of the most common gift card schemes at work right now:
The government scam
Someone from the IRS or the Social Security Administration is telling you that you owe money. A warrant is about to be issued for your arrest, but you can stop it by making a one-time payment via a gift card.
First of all, the government will send you written documentation if you have outstanding debts. If anyone calls you out of the blue like this, hang up and call the agency yourself through their official channels. NEVER give out any personal information to a cold caller.
The tech support scam
Someone from Apple or Google calls to inform you that there is something wrong with your computer. You will need to pay them using a gift card to get it fixed.
Ask yourself: how would someone from either company remotely diagnose a computer problem? That’s not how the technology works. So, if anyone calls you demanding payment for services of any kind, hang up. It’s a scam.
The dating scam
If you’re chatting with someone for a while and they suddenly start asking you for money, immediately stop talking to them. This fraudster will usually try to get you to “help them out” by sending them a prepaid Amazon gift card or something which they could use to buy groceries or whatever they claim to need. In reality, they’re just leveraging your emotions to scam you.
Never send any money to someone you don’t know. Going off that point, never arrange gifts or gift cards for people you haven’t met.
The friend in need
Someone calls you and claims to be a friend or family member (or someone calling on their behalf). The person says they’re in trouble, and asks for money but instructs you not to tell anyone, as it’s a delicate situation.
If this happens, tell them you’ll call the friend or family member back from your own phone. Contact the person yourself to check on them, then immediately call the police to report the number the scammer called from.
The prize winner
Someone contacts you to claim a prize. First, though, you have to pay convenience fees, shipping costs, or some other charges with a gift card.
You obviously can’t win any sweepstakes you didn’t enter. So, naturally, this is also going to be a scam.
The utility scam
Someone from your power or water company calls to tell you that there is a problem with your bill. The caller threatens to cut off your service if you don’t pay them with a gift card or some other card payment.
Utility companies do not accept payments this way. If your services are about to be cut off, you will be notified several times in writing, as required by law.
The check scam
Someone writes you a check for a car or some other item you have for sale, but the amount is more than the total purchase price. When you ask why they overpaid, the scammer will claim it’s for shipping and handling or something else. They will then request that you pay the difference through a gift card or some other form of payment.
This is a common scam on sites like Craigslist and the Facebook Marketplace. You should never accept or cash a check written for more than the listing price of an item. The check is always bad, and you will lose the money you send to them by whatever means.
