6 Holiday Gift Card Scams: Protect Your Holiday Cheer

One in three Americans has given or received a gift card with a zero balance, according to our holiday scam statistics. Follow our tips to avoid falling for these holiday gift card scams, from fake online gift cards to sneaky overpayment schemes.

We outline the most common holiday gift card scams, their red flags, and our top recommended identity theft protection services. For more seasonal threats, see our guide to holiday scams to avoid. Scammers are making their list, and you don't want to be on it.

6 holiday gift card scams

Gift cards make perfect stocking stuffers, but scammers love them too. Consumers reported losing $212 million to gift card fraud in 2024, according to the FTC's Consumer Sentinel Network Data Book, and reported losses through September 2025 had already reached $199 million. 

Let's unwrap the six most common holiday gift card scams and how to sleigh them.

1. Stolen and replaced gift cards

This scam begins before you even purchase a gift card. Fraudsters target physical gift cards in stores, tampering with their barcodes or scratching off the PIN code. They might even apply a counterfeit sticker over the real barcode.

Once you buy and activate the card, they drain the balance before you or the intended recipient can use it. It's a common problem: AARP's 2025 survey found that 15% of people say they've received a gift card with no funds on it.

Scammers may also swap tampered cards in stores for counterfeit versions. They then monitor these cards and wait for someone to activate them. This scam is particularly effective during the holidays because busy shoppers often don't take time to inspect each gift card carefully.

Avoid this scam: Always check gift card packaging for tampering. Look for mismatched stickers, altered barcodes, or scratches. Keep your receipt and confirm the card's balance at checkout.

2. Impersonation

In this scheme, scammers contact victims while pretending to represent government agencies, including the IRS and the Social Security Administration. They may claim you owe back taxes or fines and must pay with gift cards to avoid legal consequences.

Some fraudsters also pose as companies, often utility providers, threatening to disrupt your service unless you pay immediately with gift cards. These scams often exploit fear and urgency, especially during the colder months.

By convincing you to comply without letting you question the payment request, the scammers walk away with gift cards in their pockets.

Avoid this scam: As the FTC puts it, anyone who demands payment by gift card is a scammer. Government agencies and legitimate businesses won't ask you to pay this way. Hang up on all suspicious callers.

3. Romance scams

Holiday romance might warm your heart like a Hallmark Channel movie, but scammers know how to exploit you. They build trust with you on dating apps or social media. Before long, they're spinning dramatic tales about emergencies or family crises.

Once the mistletoe vibes kick in, they ask for gift cards to "help." Spoiler alert: True love doesn't require an Amazon gift card.

Avoid this scam: Think twice before sending money or gift cards to someone you've never met in person. It's a major red flag if someone dodges video calls and avoids in-person meetings but still asks for financial help.

4. Fake prize or lottery scams

We've all gotten this message: "Congratulations! You've won a prize!" Often, we roll our eyes and keep scrolling. But during the holiday season, scammers use the gift-giving spirit to make these offers seem more believable.

If you didn't enter a contest, you didn't win. The prize doesn't exist.

Avoid this scam: Legitimate giveaways never require upfront payments. Question anyone asking for gift cards to cover "fees."

5. Overpayment scams

Overpayment scams target online sellers, particularly those using platforms like Facebook Marketplace or Craigslist. Fraudsters purchase an item and send a check for more than the agreed-upon amount.

They then ask the seller to refund the overpayment via gift cards. Once the check bounces, the victim is left holding the bag.

Avoid this scam: Verify that all payments have cleared before issuing refunds. Be cautious of buyers insisting on gift cards for refunds.

6. Fake online gift card sales

Discounted gift cards sold on auction sites or social media platforms can look like a great deal. But many of these cards are counterfeit, already used, or invalid. Scammers lure buyers with promises of savings but provide unusable cards.

Some fraudsters also use fake websites to capture gift card information. These sites may mimic official retailer balance-checking pages. Victims enter their card numbers and PINs, and the scammers drain the balance.

Avoid this scam: Only buy gift cards from trusted retailers. Avoid deals on auction sites or social media that seem too good to be true. Never use an unofficial website or phone number to check the balance of your card.

Additional safety tips

Take a few steps to stay one step ahead of scammers. Always remember, Scrooges never take a holiday!

• Use a credit card for online purchases.
• Avoid making purchases over public Wi-Fi.
• When buying physical gift cards, inspect them closely for any signs of tampering.
• Keep a close watch on your accounts for any unusual activity.

What to do if you were scammed

If you suspect you've fallen victim to a gift card scam, take the following steps:

1. Contact the gift card issuer immediately. Look for contact information on the card or receipt, or find it on the FTC's gift card page, which lists contacts for major gift card brands. Some companies may freeze the card or refund the unused balance if you report it quickly.
2. Report the scam to the FTC at ReportFraud.ftc.gov.
3. File a report with a local law enforcement agency.

Some gift card fraud cases can lead to disastrous results. To protect your information from broader fraud, we recommend taking identity theft prevention measures. Learn more in our complete identity theft prevention guide.

Bottom line

The holidays should be about joy and togetherness, not dealing with the mess scammers leave behind. Americans reported losing a record $15.9 billion to fraud in 2025, according to the FTC, so it pays to stay alert. 

For extra peace of mind when shopping online, consider one of the best identity theft protection services. Stay vigilant and let your holidays shine brighter than ever. Don't let scammers steal your season!

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