Don’t Get Wrapped Up in a Gift Card Scam!

The holidays are a time for giving – but don’t give scammers the gift they’re hoping for. In 2024, the FTC reported $228 million lost to gift card scams. Slow down, stay alert, and make sure your generosity doesn’t get re-gifted to a scammer.

What is a gift card scam?

A gift card scam happens when fraudsters trick you into paying them with gift cards or sell you cards that have already been drained. Scammers know that gift cards don’t offer the purchase protection that debit and credit cards provide. Don’t fall for it!

The scam begins with a message through phone, email, or text from someone posing as a trusted person from a government agency, tech support, retailer, “prize” sender, or even a relative in an emergency. The message is laced with urgency and pressure to get you to act immediately. Then, the scammer asks you to purchase specific gift cards (often popular brands) and give them the card and PIN numbers, claiming this is the only acceptable form of “payment” because it is safe or anonymous.

Once the scammer has the card information, they transfer the balance to a separate account so you can’t access or recover it. This all happens very quickly and leaves little time to cancel the transaction. Fear and threats can be used to silence you from revealing this to anyone. The scammer disappears before you realize you’ve been scammed or that your card has no balance.

How can you spot a gift card scam?

• Be skeptical of unexpected asks. If you receive a request for gift cards, pause. No legitimate business, government office, or tech company will demand payment via gift cards. Never use a gift card to settle bills, fines, or taxes. If anyone asks for payment via gift cards, it’s a scam.
• Third-party sellers are often scammers. Buy gift cards directly from the register and don’t buy a card that looks tampered with. Keep records through receipts and serial numbers. Treat card information like cash. Don’t share it!
• “Don’t tell” demands are telltale signs of a scam. Never comply with anyone who threatens or scares you. Hang up the phone, and talk to family and friends, or a trusted co-worker who can help you report it.

Don’t let scammers cash in on your holiday spirit. Stay vigilant and protect yourself.

bankHometown is looking out for you.

We’re committed to keeping you informed about the latest scams and ways to protect your money and personal information. For more information about valuable tools to help you monitor your account activity, visit our fraud prevention webpage, stop by your nearest office, or call Customer Care at 888.307.5887.