Gift card scams remain a pervasive threat especially in the US. Scammers exploit gift cards’ cash-like nature and lack of consumer protections and typically contact victims via phone, email, text, or social media, posing as government agencies, tech support, utilities, relatives in distress, or sweepstakes promoters. They pressure the target into buying gift cards—such as Google Play, Apple, Amazon, Target, or Walmart—and handing over the card numbers and PINs immediately. Once the scammer has this information, the money is virtually unrecoverable. 
Another scam, known as gift card draining, involves tampering with gift cards before purchase so scammers can capture the codes as soon as the card is activated. This type of fraud has surged, especially during peak shopping seasons.

If you’ve already shared a gift card’s information, act swiftly. First, contact the card issuer right away to request a freeze or refund — some companies offer assistance in such cases. Next, report the scam to the Federal Trade Commission (via ReportFraud.ftc.gov or 877‑FTC‑HELP) and, if applicable, to the FBI’s Internet Crime Complaint Center (IC3) or your local law enforcement.
Always inspect gift cards before purchase (especially for signs of tampering), buy from reputable sources, retain both the card and receipt (a photo is great), register or check the card balance promptly, and report suspicious behavior immediately. This will help prevent you from becoming a victim to gift card draining. 

Want to learn more about how to spot and prevent gift card scams? Read the full article from the Federal Trade Commission here. 

Have questions about how these insights and ideas could impact your personalized wealth management strategy? Let’s talk.

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