AARP Hearing Center
You may think of gift cards as easy way to take care of your holiday shopping list but beware, scammers like the convenience of them, too.
The money you put on gift cards is like cash — once it’s spent, you almost certainly can’t get it back. Scammers have developed two distinct ways to exploit that fact: gift card payment scams and outright gift card theft.
According to the Federal Trade Commission (FTC), at least $217 million was stolen through gift cards in 2023. Apple gift cards were the most requested card, followed by Target, eBay, Walmart and Amazon gift cards.
Why do scammers want gift cards? Because it's harder to trace that money, and once it's gone, it's gone,” says Melanie McGovern, director of public relations at the International Association of Better Business Bureaus.
It’s easy for scammers to instruct their victims to purchase them. Unlike cryptocurrency — another way scammers ask to have money sent — “most people know how to use gift cards,” says Jennifer Pitt, a senior fraud and security analyst at Javelin Strategy & Research, which advises clients in the financial services industry.
How gift card scams work
Scammers insist you buy gift cards and read them the serial and personal identification number (PIN) on the back to quickly pay off a debt, buy something or loan money. More than a third of US adults have been approached by scammers seeking payment by gift card, according to an AARP survey.
Scammers also get gift cards by stealing their value from unattended racks in stores. The same survey found that 1-in-4 consumers have given or received a gift card with zero value.
More From AARP
What to Know About the Latest Amazon-Impostor Scams
Be aware of the latest ways criminals use the company’s name to steal from consumersCruise Scams Disguised as Deals Too Good To Be True
Planning a cruise? Watch out for these scams
10 Worst Things to Carry in Your Wallet
With identity theft rampant, keep only the essentials in your pocket or purse
What to Do If You've Just Been Scammed
How one woman worked quickly — with help — to avoid being charged through PayPal