Scammers can get quick cash, the transaction is largely irreversible, and they can remain anonymous.Īccording to reports received by the FTC, scams demanding gift cards most often start with a phone call from someone impersonating a well-known business or government authority. Scammers favor gift cards because they are easy for people to find and buy, and they have fewer protections for buyers compared to some other payment options. And because the vast majority of frauds are not reported to the government, this reflects only a fraction of the harm these scams cause. 3 In the first nine months of 2021 alone, nearly 40,000 people reported $148 million stolen using gift cards. 1 Gift cards are far more frequently reported than any other payment method for fraud, 2 and the numbers have reached staggering new highs compared to past years. About one in four people who report losing money to fraud say it happened when a scammer tricked them into giving the numbers on the back of a gift card. Reports to the FTC’s Consumer Sentinel show they’re also an easy way to take. About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
