Gift Card Scams
Americans lost $12.5 billion to fraud in 2024, according to the FTC.
Quick Answer
Gift card scams are a fraudulent scheme where criminals trick victims into paying for fake debts or services using gift cards, with reported consumer losses reaching $212 million in 2024 alone, according to the Federal Trade Commission.
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How It Works
1
A scammer contacts you by phone, text, email, or social media, creating a sense of urgency. They impersonate a government agency like the IRS, a utility company, a tech support representative, a family member in distress, or claim you've won a prize that requires a fee.
2
The scammer demands immediate payment to resolve the fake issue and insists that it must be paid using specific gift cards, such as those from Apple, Google Play, Target, or Walmart. They will often direct you to a specific store and may stay on the phone with you while you make the purchase.
3
After you purchase the cards, the scammer instructs you to provide the gift card numbers and PINs, often by reading them over the phone or sending a photo of the back of the card. Once they have these details, they immediately drain the funds from the card, making the money nearly impossible to recover.
Red Flags
- Anyone who demands payment by gift card for any reason is a scammer.
- The caller creates a sense of urgency, threatening you with arrest, service disconnection, or other dire consequences if you don't pay immediately.
- You are instructed to buy a specific type of gift card (e.g., Apple, Google Play, Target) and are told where to purchase it.
- The person stays on the phone with you while you travel to the store and buy the gift cards.
- You are asked to provide the gift card number and PIN over the phone, by text, or by sending a picture.
- You receive an unsolicited message about winning a prize or lottery that requires you to pay fees with a gift card.
- A supposed romantic interest you have only met online asks for money in the form of gift cards.
What to Do If Targeted
- Immediately contact the gift card company to report the scam. Tell them the gift card was used in a scam and ask if they can refund your money.
- Keep the physical gift card and the store receipt. You will need them for your report.
- File a report with the Federal Trade Commission (FTC) at reportfraud.ftc.gov.
- Report the incident to the FBI's Internet Crime Complaint Center (IC3) at ic3.gov.
- Notify the retailer where you purchased the gift card and inform them of the fraudulent activity.
- Contact your local police department to file a report.
How to Report It
- FTC — File a fraud report with the Federal Trade Commission. Your report helps law enforcement build cases against scammers.
- FBI IC3 — Report internet-related crime to the FBI's Internet Crime Complaint Center.
- FCC — File a complaint about phone scams, robocalls, or unwanted calls with the Federal Communications Commission.
- AARP Fraud Helpline — Call 877-908-3360 for free support from trained fraud specialists. Available to anyone, not just AARP members.
Key Statistics
- Consumers reported losing $212 million to gift card scams in 41,120 incidents in 2024. — Federal Trade Commission (FTC) 2024
- Reports of gift card payment scams to the BBB Scam Tracker increased by 50% in the first three quarters of 2023 compared to the same period in 2022. — Better Business Bureau (BBB) 2023
- Since 2020, the FTC has received reports from over 177,000 consumers about scams involving gift card payments, with total losses reaching approximately $690 million. — Better Business Bureau (BBB)
- Nearly one in three U.S. adults report having been targeted by a scammer requesting payment via gift card. — AARP
- The FBI's Internet Crime Complaint Center (IC3) received 880,418 complaints in 2023 with potential losses exceeding $12.5 billion, and gift cards are a frequently reported payment method in these scams. — FBI IC3 2023 Annual Report
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Frequently Asked Questions
Scammers prefer gift cards because they are difficult to trace and function like cash. Once they have the card number and PIN, they can quickly redeem the value online or resell the card details, making the funds almost impossible for victims or law enforcement to recover.
Recovering money is very difficult, but you should act immediately. Contact the gift card company as soon as you realize it's a scam to report the fraud and ask for a refund. Some companies may be able to freeze the funds if they have not been spent, but there is no guarantee.
Scammers use many stories, often impersonating government agencies like the IRS or Social Security Administration and threatening arrest for unpaid taxes. They also pose as tech support, utility companies threatening to cut service, family members in an emergency, or lottery officials demanding a fee to claim a prize.
No, people of all ages are targeted by gift card scams. While older adults may report higher median losses, younger people report losing money to fraud more frequently. A 2025 Pew Research Center survey found that about three-quarters of adults between 18 and 64 reported experiencing at least one online attack.
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