Protecting yourself from identity theft means you must be aware of the many ways scammers try to trick you into handing over your information.
We recently became aware of our members receiving fraudulent calls and texts from scammers trying to get more information from them about their accounts and cards. Unfortunately, there are other ways that hackers will try to scam you, especially around holiday shopping time.
One tactic growing in popularity that scammers are using involves gift cards.
Gift cards have become one of the easiest and most convenient ways to give someone a gift. However, gift cards have also become a fast way for scammers to steal money from you. Scammers will choose this method because gift cards are easy for people to find and purchase.
There are fewer protections for gift cards because they are treated more like cash than other payment methods such as credit cards.
According to the Federal Trade Commission (FTC), over $245 million dollars was spent by consumers on gift card purchases that were then lost to scammers in 2018.
How does this scam work?
There are many forms of this scam that you should be aware of. While there are more schemes, some scammers pretend to be:
- Government employees
- Business owners
- A family member or a loved one
- Tech Support
- Utility company
These scammers will concoct many different stories to entice you to pay them with a gift card but the typical route they’ll take is:
- Start the call expressing urgency in the matter. They want to convince you that if you do not pay them immediately, something terrible will happen to you or someone you love. They want to pressure you into making a quick decision so that you can’t consult with someone you trust about this decision.
- They will tell you to buy a gift card. It’s possible they will ask you to purchase specific gift cards such as Amazon, Apple or Target. To seem less suspicious, they might ask you to purchase a few different gifts cards and ask you to go to a specific store to purchase the gift cards—Walmart, CVS or Rite Aid to name a few. Some scammers will even want to stay on the phone with you while you purchase these gift cards. This is a clear indication that you are being scammed.
- They ask for the gift card number/PIN. These numbers let the scammer access the money on the card that you loaded, which is the entire point of this scam. It’s very important that you do NOT share these numbers. You will lose the money you put on the cards, and you won’t be able to get it back.
The scammer’s goal is to use scare tactics in order to persuade you into purchasing a physical gift card, or, in some cases, multiple gift cards. We know this can be frightening.
Scare tactics can include threats of discontinuing utility services, stating a loved one was arrested and needs money in order to be bailed out, that you owe money to the IRS, or that your computer/mobile device has been hacked.
Tips to Avoid Gift Card Scams
- If anyone tells you to pay by gift card, or wire money for any reason, that’s a true sign of a scam.
- Contact the Federal Trade Commission about any type of scam or fraud you’ve detected at ftc.gov/complaint, or call their toll-free number: 1-877-FTC-HELP.
- If you live in the state of NH, report it to the New Hampshire Attorney General’s Consumer Protection Bureau.
It’s important to be cognizant of the various schemes going around so you can protect yourself and your family. Trust your gut. If it feels wrong or sketchy, report it and do not follow through on what they’re asking from you.
