Unwrapping the Truth: Protect Yourself from Holiday Gift Card Scams

The holiday season is a time for joy, giving, and unfortunately, an uptick in fraudulent activities. One prevalent threat that has been on the rise is gift card scams. According to a study by the Better Business Bureau (BBB), the growth of gift card scams has prompted retailers to seek innovative solutions to protect consumers – but consumers should also remain diligent to ensure their safety.

Gift card scams have become a growing problem, especially for those who do not take the proper precautions. Fraudsters use the anonymity and convenience of gift cards to con their victims out of their money, leaving them feeling betrayed and with far less in their bank accounts.

According to the BBB, scammers often impersonate trusted entities, such as business or government agencies, tech support services, online sellers, or even colleagues and family members, urging victims to make payments using gift cards instead of money. This year, there was a significant increase in reported scams, emphasizing the need for heightened awareness and caution. 

Here are five top tips to help protect yourself from fraudsters: 

1. Verify Requests: Always verify the legitimacy of requests for gift card payments. Be skeptical of unsolicited calls, emails, or messages demanding urgent payments via gift cards.
2. Double-Check Identities: Confirm the identity of the person or organization making the request. Use trusted contact information to reach out and validate the legitimacy of the request.
3. Scrutinize Email and Other Communication: Be cautious of emails or messages that pressure you to act quickly. Scammers often create a sense of urgency to manipulate victims into making impulsive decisions.
4. Never Share Gift Card Codes: Never give out the gift card scratch-off code/PIN verbally over the phone, by text or by email. Even if you are asked to do so by someone claiming to be from a legitimate business, it is still best not to take the risk.
5. Educate Employees: If you are a business owner, ensure that your employees are educated about gift card scams. Implement protocols to verify any unusual financial requests, especially those involving gift cards. 

If you’ve fallen victim to a gift card scam, promptly report it to:  

• Better Business Bureau or BBB Scam Tracker  
• Federal Trade Commission (FTC) or call 877-FTC-Help
• Internet Crime Complaint Center (IC3)   
• If you have bought a gift card as a part of a scam, report it to the company

This holiday season, stay vigilant against the growing threat of gift card scams. By arming yourself with knowledge and following these top tips, you can protect yourself, your loved ones, and your finances from falling prey to fraudulent activities. As retailers innovate solutions to address this issue, let's collectively ensure a safer and more secure festive holiday season for everyone. 

Sources:

https://www.bbb.org/article/investigations/29516-bbb-study-growth-of-gift-card-scams-causes-retailers-to-innovate-solutions