Gift Card Scams: What To Watch Out For

Some popular gift card scams include directing people to fake card balance websites, reselling phony cards, and even tampering with physical gift cards. Gift card fraud cost Americans $212 million in 2024, according to the FTC — and it's more widespread than many people realize.[1] 

In a 2025 AARP survey, 33% of respondents said they had either given or received a gift card with no funds.[2] We'll cover the most common gift card scams, what to do if you're a victim, and tips to protect yourself, including identity theft protection.

6 gift card scams to watch out for

Scammers can trick you with gift cards in several ways — and the consequences can be hard to spot until it's too late. We found that 42% of identity theft victims discovered they were affected only after finding missing money or unusual charges on their accounts. Knowing what to look for is your best defense.

Popular strategies gift card scammers employ include setting up a fake website where users can check gift card balances, posing as legitimate gift card support over the phone or in email, or tampering with physical gift cards in stores, but those aren't all.

Here are six of the most common gift card scams.

1. Imposter scams

An imposter scam is when scammers pose as a family member, friend, colleague, or someone you know and ask you to buy a gift card for them. Often, they'll say they have an emergency and demand payment as a gift card right away. Some scammers may even use a text-number-changing app or voice-cloning app to sound like someone you know.

If someone reaches out to you like this, remember to contact the person they claim to be directly to confirm it's really them.

Government imposter scams are another common variant. Scammers pose as IRS agents, Social Security Administration representatives, or other government officials and claim you owe a fine, back taxes, or face legal consequences — payable only in gift cards. No legitimate government agency will ever ask you to pay with a gift card. If you receive a call like this, hang up and contact the agency directly using the number on their official website.

Another type of imposter scam uses dating apps and sites. Scammers will use fake dating profiles, chat with you, then make up a story to trick you into buying a gift card to send them money. Never send money or gifts to anyone you haven't met in person, even if they say they'll repay you.

2. Fake gift card websites

Most gift card companies have sites where you can check your balance. However, you should be careful about phishing websites set up by scammers to steal your gift card number and PIN and use them themselves.

Make sure to verify the URL of the gift card website before typing in anything, including the gift card number, PIN, or any personal information. The official site is most often found on the gift card itself.

Sometimes, there's a phone number you can call to check your balance as well. Don't rely on an internet search to find a gift card website, as it could be fake.

3. Overpayment scams

Scammers pretending to represent a company might refund a purchase you made, say they accidentally overpaid you, then request you return the money in the form of gift cards.

For example, a scammer can reach out and say there's been suspicious activity on your Target account, but not to worry — you've been refunded. But oops, they've actually refunded you $10,000 instead of $1,000. Could you send them back the difference in Target gift cards and read them the number on the back?

This is fraud. Don't send anyone money if they claim to have overcharged you. Hang up and contact the company directly using their official channels to discuss and report the incident.

4. Gift card tampering

Gift cards on store shelves may have been tampered with before you've even purchased them. Scammers can apply a fake barcode to the back of gift cards in stores. That way, when the card is activated by the cashier, they'll receive the money instead of you.

Scammers also scratch off the material covering the card's number and PIN, then apply their own stickers over it and steal the number. Then, when you activate the gift card, the scammer can spend your hard-earned money themselves.

It's important to thoroughly inspect all physical gift cards before you buy them. Make sure the packaging isn't torn or otherwise tampered with, and run your finger over the barcode to feel if there's a sticker or other signs of tampering. Also, confirm the balance and hold on to the store receipt in case you need to report anything suspicious.

5. Bogus giveaways

If a scammer tells you that you've won a great prize in a giveaway or sweepstakes, but you need to pay for fees or taxes upfront with a gift card, it's a scam. A good rule of thumb is you should never have to pay to win a giveaway or contest — this is illegal in the U.S.

You should also be wary of what prize they're claiming you won. Do you remember even entering a giveaway for a cruise or for $10,000? If it sounds too good to be true, it is. Never send gift cards to strangers in hopes of getting something for nothing.

6. Gift card resale scams

If someone is selling a gift card at a discount, it's sometimes legitimate, but often a scam. And if someone posts a gift card at a significantly reduced price, it's often fake.

Another version of this is when scammers ask you to contact the merchant to verify the card balance. Then they activate an automated line that prompts you to enter the card's number and PIN, allowing them to steal it.

If you're buying a gift card online for a discounted price, verify the balance yourself by contacting the gift card's company directly.

What to do if you fall victim to a gift card scam

If you've fallen victim to a gift card scam, here are some steps you can take to lessen the consequences:

1. Don't throw away the store receipt or the physical gift card.
2. Report the gift card scam to its company as soon as possible. You can look up the customer service number for the gift card brand online, and oftentimes, they have their own scam or fraud reporting pages. Sometimes they'll give you some or all of the money back, especially if the gift card hasn't been used yet. It doesn't hurt to ask.
3. Report the scam to the Federal Trade Commission (FTC) at reportfraud.ftc.gov.
4. You can also report gift card scams to the Better Business Bureau (BBB).
5. Contact your bank to tell them you've been a victim of fraud.
6. File a police report with your local law enforcement agency to help recover your money.
7. Consider signing up for identity theft protection and credit monitoring.

How to protect yourself from gift card scams

It's totally possible to purchase gift cards without getting scammed if you know the warning signs. They're a great gift for friends and family, and that's what they should be: gifts only. Never use them to pay a company or reimburse somebody.

Here are some ways to protect yourself from gift card scams:

• Inspect physical cards before you buy them to ensure there's been no tampering.
• Never use a gift card for reimbursement.
• Contact companies directly. Don't trust others to contact them for you.
• Never send money to someone you don't know and have never met.
• Contact your loved one directly using a different method if they're requesting gift cards.
• Always double-check the website you're using to verify your balance.
• Never give away any personally identifiable information.

Bottom line

You can avoid falling victim to gift card scams by recognizing the red flags. Don't send gift cards to anyone you haven't met or to anyone you haven't confirmed their identity with (if it's a scammer pretending to be someone you know). Make sure to inspect gift cards in-store to ensure they weren't tampered with, never send gift cards as reimbursement, and be extra careful when buying gift cards online.

You can also use the best identity theft protection to monitor for any suspicious activity and for your own peace of mind.

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