Gift cards are a popular and convenient option for giving and receiving gifts all over the world, saving people the time and hassle of choosing gifts for the recipients as they get to shop for whatever they want themselves. With the rate at which gift cards are purchased, there has been an increased growth in the gift card market, as many e-commerce brands, fintech companies, and corporate organizations are now adopting gift cards as part of their products.
However, these popular gifting options have become a favourite scamming tool for fraudulent people. Scammers take advantage of the anonymity of gift cards and use them to scam gullible and unsuspecting individuals. Little wonder millions of gift card scams occur yearly.
In this guide, we will be exploring some of the common gift card scams and how to avoid being scammed. Without any further ado, let's jump into it.
Key takeaways
- Gift cards have anonymity, making it possible for scammers to use them as a scamming tool since they cannot be traced.
- Emotional manipulation and urgency are tricks scammers use to defraud their victims. Always stay vigilant and trust your instincts.
- Stay updated on the recent scam tricks so you do not fall victim.
What are gift card scams?
Gift card scams simply refer to the extortion of gift cards from people in a dishonest manner. This usually occurs when scammers trick people into purchasing gift cards or sharing their gift card details with them.
Gift card scams are common and easy to pull off because users do not require input of their identification details before use, hence why fraudsters use it to stay anonymous, as it is difficult to trace them.
Furthermore, gift cards are universally accepted and can be used to shop online. They are also easy to redeem, so once a scammer has access to your card details, they can easily redeem it.
Kitted with all of these information, all a scammer needs to scam a gullible individual is to use emotional manipulation or urgency to get their victims to purchase or hand over their gift card details to them.
Common gift card scams
1. Impersonation scams
When you receive a call from a said government official that they are from the IRS and you have a pending tax that you are yet to pay and need to pay a fine through gift cards for the delay, just know that you are dealing with a scammer, as no government agency will call you demanding that you pay your tax else legal actions will be taken against you if you do not comply, talk more of asking you to pay your tax through gift cards.
It is purely a scam; do not fall for it.
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2. Won a prize scam
When you receive a call from an unknown person claiming that you won a prize or lottery but making a demand for a fee before you can redeem your prize, bear in mind that it is a scam. No legitimate prize giving will require you to make payments before you can claim it.
3. Tech support scams
Some fraudsters act as tech support from reputable brands, claim that there is something wrong with your computer, and demand remote access and a certain fee to get it fixed. Don't fall for it; it is a scam.
If you find yourself being worried, go to the official website of the brand or tag them on social media to inquire.
4. Romance scams
This is very common and happens to people who use dating websites a lot. Scammers sign up on these dating sites and chat you up. As time goes on, they gain your trust and start using emotional manipulation to get you to send them gift cards or money, claiming they need it for one thing or the other.
My advice is that you should slow down and not send money to anyone you have not met in person. Take the time to know them properly and be sure they are honest with you.
5. Charity scams
During natural disasters or pandemic outbreaks, many scammers pose as representatives of fake charities to seek help and donations. Most of them are so deliberate, asking for gift cards.
Be vigilant when you receive such messages and take the time to investigate properly as most of them are scammers.
6. Imposter scams
If someone calls you pretending to be a member of your family or a loved one, saying they are stranded, sick, or in any terrible condition and that they need you to send them money right away, but you should not tell anyone.
Stop communicating with them immediately, as it is likely a scam. If you are worried, you can call other family members to confirm if it is true.
5 Signs of a gift card scam
1. Sense of urgency
If you feel pressured to act immediately, then there is a likelihood that you are about to be scammed. Fraudsters tend to create a sense of urgency, claiming there are grave consequences if an action is not carried out immediately. You may receive threats of arrest, account restriction, etc., if you do not act fast. Which is not common among genuine organizations?
2. Payment via gift cards
When a reputable organization calls you about something and demands that the payment must be done via gift cards, just know that it is a scam, as no genuine organization will request payment of taxes, utility bills, services, and so on via gift cards.
3. Unwanted contact
One common sign that someone is a scammer is that they contact you out of the blue asking for gift card payment without you remembering how you met this person. In situations like that, it is advisable that you apply caution and discontinue any form of communication when necessary.
4. Emotional manipulation
The moment you are communicating with an unknown person or maybe someone you met on a dating website but have not met in person, and they make you feel guilty for not doing something, just know that you are communicating with a scammer who is trying to manipulate you emotionally to carry out a request against your will.
5. Poor communication
Most fraudsters have very poor communication skills. You may notice an irregular communication pattern, misspelling, or grammatical mistakes while communicating. While this is not a yardstick, watch out still.
How to Avoid Being Scammed?
- Don't share gift card details: If you want to avoid getting scammed by fraudsters, then avoid sending or sharing your gift card details with people you do not know. Do not also purchase gift cards for any organization, as no reputable organization will ask for gift cards as payment.
- Due diligence: Before sending gift cards to someone, ensure you take your time to verify the person's identity and the reason for the request. Do not send gift cards to anyone under impulse. Rather, it should be willing...
- Beware of deals: Many fraudsters will come to you with too-good-to-be-true deals, either as discounted or free gift cards, when you purchase something on their website. Be vigilant and do not fall for such scams.
- Avoid clicking on unverified links: Many scammers often send phishing emails with malicious links to their victims. So if you ever find yourself in a situation where an unverified link is sent to you by an unknown source, do well to properly investigate and verify the link before clicking on it.
- Stay updated: Regularly update yourself about the latest gift card scams so that you become very knowledgeable and alert when you encounter a scammer using a new scamming trick that may not be common yet.
Risks openly can help others recognize and avoid falling victim.
- Two-factor authentication (2FA): Enable 2FA on all of your accounts so that fraudsters cannot hack into them easily and use your personal information to defraud you of gift cards.
- Verify before buying gift cards: Before buying a gift card, take the time to verify the gift card before purchasing. Only buy from trusted and reliable platforms, ensuring it is sealed.
- Trust your instincts: Our instincts never fail us as humans, so if you have the feeling that something is off or feel a sense of urgency to make the transaction. Trust your instincts and take some time to properly investigate before forging ahead.
Final Thoughts
Gift card scams are becoming very common nowadays; the sad reality is that there is practically nothing that can be done when you are scammed, as the scammer cannot be traced because of the anonymity that comes with using gift cards.
For that reason, it is important to take precautions before purchasing or sharing gift card details with anyone. I encourage you to follow all the steps mentioned in this blog post. I hope it guides you to not fall victim to gift card scams.
And if you have ever fallen victim, do well to share your story with us so we can learn from it. Thank you!
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