Renee Hugger, AFC (Accredited Financial Counselor) Blog Page

It’s so frustrating we have to be on alert for scammers. Gift cards are a huge pain point for consumers and– the gift cards scammers want you to use are changing constantly.

Why scammers favor gift cards

  1. They are easy for consumers to find and buy.
  2. There are fewer protections for buyers.
  3. Scammers can get the cash quickly.
  4. Transaction is very difficult and almost impossible to reverse
  5. The scammer can remain anonymous

How the scam starts

Gift card Scams usually start with a phone call. The scammer will demand gift cards to solve the problem.

The scammer is typically posing as a well-known business or potentially a government authority, like Social Security. They are imposters – pretending to be someone they are not!

For example, the scammer may request you purchase Amazon or Apple gift cards. Learn more about the Amazon scam.

Then they ask you to send pictures of the numbers on the back of the gift card. This is usually to fix some kind of security problem with the consumers account.

It’s important to realize, the impersonator sometimes calls the numbers on the back of the gift card “security codes”, not the PIN number”. When in fact these numbers are the pin and that’s the key to getting the money off the card.

One example of an impersonator acting like they are from the Social Security Administration, is they will tell the consumer that their bank accounts would be frozen as part of an investigation as part of the misuse of their social security number.

The scammer tells them to buy gift cards to avoid arrest and to make sure their money remains secure.

Realize once your money is on the gift card, and you give out the numbers on the back of the card – you are giving your money away.

Many times, the scammer will tell you which gift cards to buy!

Most popular gift cards targeted

Top gift card Brands & losses reported from 1/21 – 9/21 by the FTC.

  • Walmart – $6M
  • Ebay – $10M
  • Apple – $16M
  • Google Play – $17M
  • Target – $35M

The imposter or scammer will even tell you where to go to purchase the gift cards.

How they trying to stop anyone from helping you get out of the scam!

They will try to keep you on the phone as long as possible. This is so that they can deter anyone who tries to help you by listening to your conversation and telling you what to say back to the cashier. They don’t want anyone to help you stop the scam!

Store employees & cashiers have been helping tremendously!!!!

Especially when consumers are buying a lot of gift cards.

Report the scam

If you see a scam, know of a scam please report it to the FTC. Learn more about what to do if you have been scammed and how to report a scam here.

Learn More!

I hope you found this information helpful!

Any recommendations I make should be taken into consideration with your values and goals. You should make the best decision that aligns with your family’s values.

As a Financial Coach, my mission is to help families save more, spend less so they can buy and do the things most important to them and spend their time and energy focusing on their kids.

Spending quality time with your kids is more important than stressing about finances. Instead of going to friends and family and sharing your financial struggles, reach out to me. I love talking about money, values, assessments and strategies to make positive changes to your financial habits to live a life you love.

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