Gift card scams are one of the most common — and costly — forms of fraud today. What makes gift cards convenient for shoppers is exactly what makes them appealing to scammers: they're easy to buy, load, and cash out, and once the balance is spent, the money is virtually impossible to trace or recover.
Gift cards, also known as gift certificates or vouchers, have topped the list of reported fraud payment methods every year since 2018, according to the Federal Trade Commission (FTC). In 2024 alone, the FTC received more than 41,000 reports of gift card and prepaid card fraud, totaling over $212 million in losses—and roughly one in four people who lost money to a scam say they paid with a gift card.
What is a Gift Card Scam?
Gift card scams typically follow a simple, predictable pattern. A scammer contacts you, often posing as a government agency, a business, or even someone you know, and insists you pay a debt, fee, or fine using gift cards. Once you've purchased the cards, they'll ask for the card number and PIN found on the back. As soon as they have that information, the scammer can drain the card's value instantly, leaving you with no way to recover the funds.
No legitimate government agency or business will ever demand payment via gift card. If someone asks you to pay this way, it's a scam — no exceptions.
Common Gift Card Scams to Watch Out For
Gift card scams share a lot of DNA with everyday phishing attacks — both rely on deceptive calls, emails, texts, or websites to steal your information and money. And both work the same way: by exploiting fear, urgency, and doubt to short-circuit your better judgment.
Here are some of the most common gift card scams to know:
Gift card payment demand
This scam often kicks off with a phone call or text warning you to contact a government agency or law enforcement immediately to pay overdue taxes or fines — or face arrest.
Once you're on the line, the scammer will insist you pay using gift cards, typically requesting popular brands like Apple, Amazon, or Google Play. They may even stay on the phone with you while you drive to the store or complete the purchase online, coaching you on what to say if a cashier asks questions.
Once you've bought the cards, the scammer will ask for the numbers and codes on the back—and the moment they have them, your money is gone.
Stolen codes
Some scammers visit stores in person and jot down the codes hidden on physical gift cards before they're purchased. They then simply wait: once an unsuspecting shopper buys and activates the card, the scammer redeems the stolen code to make purchases online, often before the original buyer even uses it.
Fake gift cards
Other scammers sell gift cards loaded with far less value than advertised or no value at all. These cards may be entirely counterfeit or stolen. If a gift card deal seems too good to be true, it probably is.
Gift card generators
Marketed as websites or downloadable apps, these tools claim to "generate" redeemable codes for major retailers. In reality, most only produce random, unusable codes, but not before harvesting your personal information and credit card number for later fraudulent use.
The risk doesn't stop there: downloading one of these generators can also introduce malware onto your device, opening the door to crypto mining, ransomware, and other malicious activity.
Why Do Scammers Like Gift Cards?
Tracing or canceling purchases made with gift certificates is difficult, at times almost impossible. Gift cards are essentially as anonymous as cash as they aren’t traceable to any individual’s bank account, so pinpointing the source of the fraud is challenging.
Gift cards are an easy way for scammers to access funds as they are available in most stores, and just about anyone can buy one. And unlike wire transfers, using or buying gift cards won’t raise any red flags.
Particularly around the holiday shopping season, it’s not unusual for someone to buy multiple gift cards at a time. As a result, credit card companies and banks are unlikely to flag or halt a purchase on suspicion of fraud.
8 Ways to Defend Yourself Against Gift Card Scams
Vigilance is your best defense against gift card fraud. To help you stay protected, Fortra Security Awareness Training recommends the following best practices:
1. Never share personal information with unsolicited messages or calls
Legitimate businesses have no reason to request your name, address, or credit card details out of the blue — and they'll never ask you to pay using gift cards. Treat any unsolicited request for personal information as a red flag.
2. Don't engage with unsolicited callers
Scammers often work the phones because a live conversation lets them build false rapport before applying high-pressure tactics. If an unfamiliar caller starts making aggressive demands, hang up.
3. Avoid suspicious email links and attachments
Malicious links and attachments remain one of the top ways cyber criminals deliver malware. Never click a link from an unknown sender; instead, hover over it first to preview the destination, and skip it entirely if anything feels off.
4. Watch for spelling and grammar mistakes
Scam emails can look polished at first glance, but closer inspection often reveals typos, awkward phrasing, or grammatical errors. Sloppy writing is a strong signal that a message isn't legitimate.
5. Double-check the URL
Shop only on trusted retail sites and always confirm you're on the correct URL. Spoofed sites often hide in plain sight — like an extra "n" in "amazonn.com" — so a quick glance isn't always enough.
6. Look for HTTPS:// and the lock icon
Know the difference between a secure and non-secure site. Confirm the URL starts with HTTPS:// and displays a lock icon and make sure the checkout process is encrypted too.
7. Inspect the card for tampering
Before buying a physical gift card, check the packaging for signs of tampering. If it looks altered, the code may already be compromised; alert store staff and choose a different card.
8. Trust your judgment
Scammers rely on social engineering to exploit our desire for a good deal. Whether it's Cyber Monday or a random Tuesday, if an offer seems too good to be true, it probably is.
Stay Aware and Spot Scams Right Away
Gift cards make great presents, but that same convenience makes them a prime tool for fraud. Their ease of use and near-total lack of traceability are exactly why scammers keep coming back to them.
Recognizing how these scams unfold is one of the simplest ways to protect yourself and your loved ones from falling victim — not just to gift card fraud, but to the broader phishing and social engineering tactics scammers use every day.
