6 Holiday Gift Card Scams: Protect Your Holiday Cheer

In 2023, Americans lost a staggering $217 million to gift card scams.[1] 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. Scammers are making their list — and you don’t want to be on it.

6 holiday gift card scams

Gift cards are the perfect stocking stuffer, but scammers love them too. These crooks want to exploit hurried holiday shoppers. Let’s unwrap the six most common gift card scams and how to sleigh them.

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.

Scammers might also swap out tampered cards in stores with counterfeit versions. They then monitor these cards and wait for activation. 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.

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, have fines due, and need to pay with gift cards to avoid legal consequences.

Some fraudsters also pose as companies — often utility providers — threatening to disrupt your service unless you immediately pay via 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: Government organizations will never ask to pay them via gift card. Hang up on all suspicious callers.

Romance scams

Holiday romance might warm your heart like a Hallmark Channel movie, but scammers know how to exploit you. They build your trust 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 request gift cards for “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. Especially if 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.

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. However, during the holiday season, these gift card scams are more common than ever.

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.”

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 payment but for more than the agreed-upon amount.

They then request that the seller refund the overpayment using 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.

Fake online gift card sales

Discounted gift cards sold on auction sites or social media platforms can be a tempting deal. Many of these cards typically turn out to be 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, leaving them penniless by the end of the transaction.

Avoid this scam: Only buy gift cards from trusted retailers. Avoid deals on platforms like eBay 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

There are a few steps you can take 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, be sure to 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. Most companies have contact information on the card or receipt. Some companies may freeze the card or will refund you the unused balances if reported promptly.
2. Report the scam to the FTC at ReportFraud.ftc.gov.
3. File a report with a local law enforcement agency.

Some cases of gift card fraud can lead to disastrous results. To safeguard your information against broader fraud, we recommend using identity theft protection. Here are our favorite providers:

FAQs

Bottom line

The holidays should be about joy and togetherness, not dealing with the mess left by scammers. If you want extra peace of mind when online shopping, consider using one of the best identity theft protection services.

Be sure to stay vigilant and let your holidays shine brighter than ever. Don’t let scammers steal your season!