Gift card scams: how to spot them and protect the cards you buy
Gift cards are one of the most popular holiday gifts, and they are also a favorite payment method for scammers, because once someone has the card number and PIN, the money is usually gone. Here is how to protect yourself and the people you buy for.
- No real government agency, utility, bank or tech support company will ever demand payment by gift card.
- Check the packaging before you buy: scammers tamper with cards on the rack.
- If you were tricked, contact the card company right away and report it.
The rule that stops most scams
The FTC's advice is simple: anyone who tells you to pay them with a gift card is a scammer. Common stories include a "government agency" saying you owe a fine, a caller claiming to be from your utility threatening to shut off power, fake tech support, a "boss" texting you to buy cards for clients, or a relative "in trouble" who needs money fast. See FTC: Avoiding and reporting gift card scams.
Before you buy a gift card as a gift
- Inspect the package. Look for torn, re-sealed or bent packaging, or a PIN area that has been scratched. Pick a card from the back of the rack, or buy directly from the store's or brand's website.
- Keep the receipt and the card's packaging until the card is used. You'll need them for any claim.
- Buy from sources you trust. Discounted gift cards from strangers on marketplaces can be stolen, empty or already registered to someone else.
- Register the card if the brand offers it, so lost balances can sometimes be recovered.
If you already gave someone a gift card number
- Contact the company that issued the card immediately. Tell them it was used in a scam and ask whether they can freeze the funds or refund you.
- Keep the card and the receipt.
- Report it to the FTC at ReportFraud.ftc.gov.
How to use gift cards smartly
Gift cards are great for saving when you buy them on promotion (for example "buy $50, get a $10 bonus card"). Read the bonus card terms; bonus cards often expire quickly and can only be used during certain dates. Spend cards in a reasonable time so a store closure doesn't leave you with a worthless balance.
More shopping safety: how to spot fake shopping sites · how to dispute a charge.
Published October 25, 2026. We do not use affiliate links on this page; see our Affiliate Disclosure.