The Federal Trade Commission has a simple rule for gift cards: no real business or government agency will ever tell a person to buy one to pay them. The agency’s consumer guide lists 7 common gift card scam types, and every one of them ends the same way, with a shopper reading card numbers to a stranger.
The warning lands as the holiday shopping season gets going and gift cards sit at the top of many wish lists.
Why Gift Cards Are on Every List This Year
The National Retail Federation reports that 47% of consumers want a gift card this holiday season, making it the top wish-list item. Clothing came second at 44%. The survey, run by Prosper Insights and Analytics for the trade group on October 1 to 7, polled 8,094 adults and carries a margin of error of 1.1 percentage points, according to the NRF release.
The group also forecasts that November and December spending will grow 4.2% over 2025 and reach $1.013 trillion. Plenty of that money will move through prepaid cards, which is one reason scammers aim at them. Spending that big also makes it worth reading about products Americans overpay for without realizing it.
Shoppers trying to stretch a holiday budget may like these 26 easy tips for saving money fast, and those who start early may enjoy what finishing holiday shopping before Thanksgiving reveals.
Why Scammers Ask for Gift Cards
Careful spenders can also browse 10 clever frugal living tips before the season gets busy.
A gift card is a prepaid, stored-value card, and Wikipedia’s overview notes that most carry a number or code rather than the holder’s name. Because the cards are hard to trace, a scammer who receives the codes is difficult to track down.
The FTC’s guide describes 3 tactics that repeat across the scams. The first is urgency: payment is demanded immediately so a person has no time to think or ask someone trusted. The second is a specific card or store, sometimes several stores in a row so cashiers do not grow suspicious, with the caller staying on the phone while the money is loaded.
The third is the card number and PIN. Handing over either one, or a photo of the card, lets a scammer drain the balance even if the card is still in the buyer’s hand.
Scams built on a family bond are not rare. One example is a case in which an incarcerated man used AI-generated photos to swindle his elderly mother out of money.
The 7 Common Gift Card Scam Types
According to the FTC’s guide to avoiding and reporting gift card scams, the 7 types are:
- Government impersonation: callers claim to be from the IRS, the Social Security Administration or the FTC and demand payment for taxes or fines.
- Tech support: callers claim to be from Microsoft or Apple, report a computer problem and ask for remote access and payment.
- Family or friend emergency: scammers, sometimes using voice cloning, pose as a loved one in trouble and ask for secret, immediate payment.
- Fake prizes: a person is told they have won, but must first pay fees with a gift card.
- Utility company: callers threaten to cut off service unless payment arrives immediately.
- Romance scams: people met on dating sites ask for money or gift cards.
- Fake checks: a person receives an overpayment check, deposits it and sends the difference on a gift card, but the check is fake.
The government impersonation type is not limited to gift cards. The federal site USA.gov says scammers may pose as the Internal Revenue Service, the Social Security Administration, a business or a charity, aiming to earn trust so they can take personal information and money.
What to Do After Paying a Scammer
The FTC says the first step is to report the loss to the gift card company right away, however long ago it happened. The agency suggests asking for the money back, noting that some companies may issue a refund.
The second step is a report to the FTC at ReportFraud.ftc.gov. The guide recommends keeping the gift card and the store receipt on hand for both steps.
The page lists phone numbers or online forms for companies including Amazon, American Express, Apple, Best Buy, Target, Visa and Walmart. For a card that is not listed, the FTC says to check the card itself for contact information, and to report to the FTC if the issuer cannot be reached.
How to Buy Gift Cards More Safely
The FTC’s buying tips are short and practical:
- Buy only from stores that are known and trusted, and avoid online auction sites, where cards may be fake or stolen.
- Check that the protective stickers are intact and the PIN is not exposed. If something looks wrong, pick another card and show the problem to a cashier or manager.
- Photograph the card and the store receipt. The card number helps with reports if the card is lost or fraud occurs.
The tampering warning is not new. Wikipedia reports that in 2023 the FBI warned about gift cards with stickers placed over their barcodes.
A Simple Rule for the Season
The takeaway is easy to remember. A caller, email or text that asks for payment in gift cards is a scam, whether it claims to come from a tax office, a tech company, a utility or a relative.
Gift cards remain a perfectly good present. The risk comes only when someone else sets the terms and insists on speed, secrecy or a specific store. Pausing to check with the real company through a number found independently, and talking to a trusted friend or family member, are sensible responses to any request that feels rushed.
This article was produced with AI assistance and edited for accuracy against the sources linked above.
