Watch out for Gift Card Scams

Criminals often demand payment in gift cards or steal the value of cards at retailers

Deirdre van Dyk,

Updated October 24, 2025

AARP

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En español

Published December 08, 2021

/ Updated October 24, 2025

a present wrapped in red paper with a blue bow

Photo Illustration: Matt Chase

Buying gift cards makes holiday shopping easy. Unfortunately, scammers like them, too — mainly because the cards work like cash. “Once the money is gone, it’s gone,” says Melanie McGovern, director of public relations at the International Association of Better Business Bureaus.

And it’s easy for scammers to instruct their victims to purchase them. Unlike cryptocurrency — another payment form favored by criminals — “most people know how to use gift cards,” says Jennifer Pitt, a senior fraud and security analyst at Javelin Strategy & Research, which advises clients in the financial services industry.

According to the Federal Trade Commission (FTC), at least $212 million was stolen through gift card-related scams in 2024. (The actual losses are likely far higher than the official numbers indicate, since many victims don’t report these crimes.) Scammers tend to favor gift cards from major retailers such as Apple, Target, eBay, Walmart, and Amazon, among others. The U.S. Department of Homeland Security (DHS) has warned consumers that “gift card fraud perpetrated by Chinese organized crime groups is spreading across the globe and can be attributed to losses in the hundreds of millions of dollars.”

How gift card scams work

In some cases, criminals drain the value of gift cards before they are purchased. They’ll steal cards sitting in unattended store racks, record the numbers and PINs, then repackage and replace the cards. When someone buys and activates a card, they swiftly drain the value. A 2024 AARP survey found that more than a quarter of consumers have given or received a gift card with zero value.

In many scams, however, gift cards are the preferred method of payment. Whether pretending to be a seller online or an official notifying you of a supposed debt, they’ll ask you to buy gift cards and read them the serial and personal identification numbers (PIN) on the back of the cards.

Scammers may pretend to be from the IRS, for example, and say you owe money that can be paid with a gift card. This is a scam, says Pitt: “No legitimate government agency will ever accept payment in the form of a gift card.”

Other scams where perpetrators may ask for payment in gift cards:

Tech support. You may receive a pop-up ad or an email from scammers pretending to be from a tech company, warning that a virus has infected your computer or that a security service on your computer is about to expire. They’ll ask you to pay for their assistance with gift cards.

Someone needs a favor. A boss or colleague asks you to do them a favor and buy gift cards for clients or to get them out of a jam. Just read them the numbers on the back of the cards after you purchase them. They’ll reimburse you later.

Online romance. A romantic partner you’ve bonded with online, but never met in person, may suddenly seek a loan for a supposed crisis.

Online shopping.. An online vendor may ask for payment in gift cards. Criminals also lurk on resale and auction websites, ostensibly offering goods at an attractive discount. They may also create fake shopping websites imitating a known retailer. Once they get you interested in buying, they’ll ask you to pay with a gift card. As soon as they get the card number and PIN, they vanish, and so does the money on the card.

You won the lottery. A phony representative from a sweepstakes tells you you’ve won big, but need to pay taxes and fees. Only scammers ask you to pay fees, back taxes or bills for services with gift cards.

How to protect yourself from these scams

Don’t pay for anything with gift cards. Pitt suggests offering a different payment method if someone asks for payment via gift card, “Something like a credit card … that can easily be tracked or refunded. If they say, No, it’s a scam.” Only use gift cards for gifts.

To avoid buying a card with no value:

Mind where you buy. When buying cards, purchase them directly from the business that issued them. If you buy online, “Don’t purchase it from a company that says ‘we specialize in digital gift cards.’ … Right now, it’s too hard to tell which ones aren’t legitimate,” says Pitt.

Double-check the value. It’s always a good idea to check that the funds are there before leaving the store, says Melanie McGovern, director of public relations at the International Association of Better Business Bureaus. And if you are buying several gift cards during the holiday season, “Make sure each and every one is scanned at the register,” says McGovern.

Look for tampering. DHS advises consumers to note whether the gift card package has been tampered with, as well as if the personal identification number “cover has pieces missing, is fully missing, is not flat/smooth or contains wrinkles.”

Keep the receipt. Hang on to the receipt as documentation. It might help if something goes wrong.

Protect your personal information. Be cautious not to share your bank account numbers or Social Security numbers with anyone in exchange for a gift card.

How to report problems

Immediately contact the retailer that issued the gift card you used to pay a suspected scammer. If money remains on the card, you might be able to get it back. You often will find contact information on the card.

Report the theft to local law enforcement, as well as the FBI’s Internet Crime Complaint Center. The more information authorities have, the better they can identify patterns, link cases and ultimately catch the criminals.

Call the free AARP Fraud Watch Network Helpline (877-908-3360) to speak with trained specialists who can provide support and guidance on what to do next and how to avoid scams in the future. The AARP Fraud Watch Network also offers online group support sessions for individuals who have been victims of a scam.

This story, originally published in 2021, has been updated with advice from experts.

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Deirdre van Dyk is an AARP associate editor covering Social Security, caregiving, technology and fraud. She previously worked at USA Today and Time, where she covered business, government, sustainability and innovation.

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