How to Avoid Gift Card Scams (2024)

FAQs

How to Avoid Gift Card Scams? ›

Your first line of defense to avoid gift card scams should be to keep a keen eye out for any unsolicited texts, emails, messages on social media and calls from people you don't know, especially if they are offering something that is likely too good to be true.

Your first line of defense to avoid gift card scams should be to keep a keen eye out for any unsolicited texts, emails, messages on social media and calls from people you don't know, especially if they are offering something that is likely too good to be true.

To protect yourself and others from gift card draining, check card packaging and keep your gift card receipts. If you've been scammed, speak to the gift card company to see if you can get a refund.

Report the scam to the gift card company right away. Tell the FTC at Reportfraud.ftc.gov.

“Today's scammers want gift cards as payment, leaving those unaware of this tactic vulnerable to schemes designed to commit fraud,” the BBB writes. Experts warn that people should think of gift cards like they do cash, because the funds are so difficult to trace once the card falls into the wrong hands.

To protect yourself, McClellan said it's important to ensure that gift cards come with a protective seal and that tape covers the PIN.

Unlike cash, some gift cards have an expiration date. Also, the location for the gift card could close before the person uses it.

The easiest way to become a victim of a bank scam is to share your banking info — e.g., account numbers, PIN codes, social security number — with someone you don't know well and trust. If someone asks for sensitive banking details, proceed with caution.

Using Geolocation Tracking

Credit card companies and banks generally use software to extract geolocation data and leverage it for information like the malicious user's time zone, internet service provider (ISP), and exact location of the fraudster at the time of the fraudulent purchase.

New card, new scam

If you have to get a new card because of a scam, fraudsters can try to scam you again. They may still have your details and pretend to be from your bank or another well-known company. Remember, only a fraudster would call to tell you to move money to another account.

Can gift card scams be traced? ›

Gift cards often can't be refunded, traced, or disputed.

Retailers can rarely trace gift cards, and it's difficult for consumers to prove they weren't the ones who used them. Scammers know that as soon as a gift balance is compromised, the money is theirs.

According to a 2022 survey conducted by AARP, the advocacy group for older adults, 34% of U.S. adults said they or someone they know had been targeted by scams seeking payment by gift card. Of those who were targeted, 24% followed through by purchasing gift cards and sharing the activation numbers with a scammer.

The FBI can track any transaction that leaves a paper trail. You're screwed. Can stolen gift cards be traced? The gift card will be redeemed after all somewhere and to answer your question simply, Yes they can be tracked.

Individuals should first report the number to authorities and then use reverse phone lookup services to potentially identify the owner. It's advised to involve law enforcement as they can use legal tools to trace the number and locate the scammer.

If you notice unauthorized charges on your card, you have the option to dispute these charges directly with the merchant where the purchase was made.

Can Gift Cards Be Traced? Gift cards tied into credit card networks, such as Visa prepaid cards, can be traced. For gift cards tied to individual merchants, it depends on what systems and processes the merchant has in place.