Gift Card Scams: How To Stay Safe This Holiday Season
The holiday season is a time for giving, and gift cards are a popular choice. They’re convenient, thoughtful and let recipients pick out exactly what they want. Unfortunately, scammers see their popularity as an opportunity to steal money, especially during the busiest shopping season of the year.
Gift card scams can take many forms, from tricking people into buying cards for fake reasons to tampering with cards before they’re purchased. Knowing how these scams work can help keep your funds safe this holiday season.
Gift cards are like cash—once spent, they’re gone. That’s why it’s so important to stay vigilant, recognize the warning signs of scams, and take steps to protect yourself and your finances this holiday season.
If you think you might have inadvertently shared your personal information with a scammer, please contact us as soon as possible. You can call us at (805) 733-7600, or visit our Fraud Protection page and complete the form.
Gift card scams can take many forms, from tricking people into buying cards for fake reasons to tampering with cards before they’re purchased. Knowing how these scams work can help keep your funds safe this holiday season.
Common Types of Gift Card Scams
- Stolen and Replaced Gift Cards: Scammers will steal gift cards, record their codes and reseal the packaging to look untouched. Once activated by the retailer, they drain the funds, leaving buyers with empty cards. Always check for tampering, like loose seals or exposed security codes.
- Online Gift Card Scams: Be cautious when purchasing gift cards online from third-party websites. Scammers often sell cards at a discount that are already drained of funds or completely fake. Stick to reputable retailers or the official websites of the gift card brand.
- Fake Charity Scams: Scammers pose as charities during the holiday season, asking for donations in the form of gift cards. They use convincing stories to gain trust, but legitimate charities rarely request gift cards. Always verify charities through trusted resources before donating.
- Holiday Shopping Spree Scams: Fraudsters send messages promoting a “holiday shopping spree” or free gift cards. To participate, they ask for personal information or payment via gift card. Once they have the card details, they disappear, leaving victims with no prize and an empty card.
How to Protect Yourself
- Shop Carefully: When buying cards in-store, inspect the packaging for signs of tampering. If anything looks suspicious, like exposed codes or damaged panels, ask for a different card or purchase from another retailer.
- Avoid Third-Party Sellers: Only buy gift cards from official retailers or the brand’s website. Deals that seem too good to be true, especially on resale sites or social media, are often scams.
- Verify the Charity: Research charities using trusted platforms like Charity Navigator or the IRS website. Be wary of unsolicited donation requests, especially those pressuring you to use gift cards. Donate directly through the charity’s official site.
- Don't Share Gift Card Details: Legitimate giveaways don’t require entry fees or personal information. Never share gift card numbers or PINs, as scammers can instantly drain the funds. Inspect messages for typos, suspicious links, or generic greetings, which are common signs of phishing.
Gift cards are like cash—once spent, they’re gone. That’s why it’s so important to stay vigilant, recognize the warning signs of scams, and take steps to protect yourself and your finances this holiday season.
If you think you might have inadvertently shared your personal information with a scammer, please contact us as soon as possible. You can call us at (805) 733-7600, or visit our Fraud Protection page and complete the form.