Gift cards have become a popular form of payment, with over $1 billion spent on them every year. So it’s no surprise that they’re one of the most-frequently employed payment methods by scammers.
When consumers receive an eGift card from a company for which they have never shopped, there is little they can do to verify the legitimacy of the card.
The best way to avoid becoming a victim of eGift card fraud is to only buy gift cards from well-known, reputable retailers. Also, be sure to check the balance on the card before using it.
If you have any concerns about an eGift card, you should contact the company that issued it before using it for further verification.
What is eGift card fraud?
eGift card fraud takes two forms: (1) criminals use stolen credit cards to purchase gift cards online; and (2) scammers send fraudulent eGift cards to victims in order to steal their money or their personal information.
According to the FTC, eGift card fraud is one of the fastest-growing varieties of online theft. In fact, it’s estimated that as much as $5 million a day is stolen through this type of crime. During the 2015 holiday season alone, there were more than 52 reported incidents where consumers found themselves out $100,000 or more.
What can you do to protect yourself?
The best way to protect yourself from eGift card fraud is to only buy gift cards from well-known, reputable retailers. Also, be sure to check the balance on the card before using it.
If you have any concerns about an eGift card, you should contact the company that issued it before using it for further verification.
What to do if you’re scammed?
If you’ve been scammed by someone who sent you a fraudulent eGift card, there are a few steps you can take:
- Contact the company that issued the card.
- Contact your credit card company.
- File a complaint with the FTC.
- Contact your state’s attorney general’s office.
- If you lost money as a result of the scam, file a police report.
By following these steps, you may be able to get your money back.
What is a ‘Gift Card Scam’?
A scam artist will contact you through email or social networking sites to offer you an eGift card. The scammer typically poses as a legitimate company, such as Apple, PayPal, Best Buy or Victoria’s Secret. The scammers also may pose as government agencies, such as the IRS, and request payment through an eGift card.
Scammers will create fake websites to make you believe they are legitimate businesses. The scammer creates a website that looks like the specific online store where you could buy your desired gift card. You might think purchasing from their website would be safe; however scammers embed malware on these websites which can steal your personal and financial information.
Some scammers may even send an eGift card to you without asking for any information. They may ask you to use the card at a specific store or online. Once the scammer has the gift card number, they will use it to purchase items or withdraw cash.
Tips to avoid becoming a victim of eGift card fraud:
Only buy gift cards from well-known, reputable retailers. They might even guarantee the cards they sell. If you have any concerns about an eGift card, contact the company that issued it before using it for further verification. Also contact your credit card company and file a complaint with the FTC.
If you are a scam victim, there are some steps you can take to try and get your money back:
- Contact the company that issued the card.
- Contact your credit card company.
- File a complaint with the FTC.
- Contact your state’s attorney general’s office.
- If you lost money as a result of the scam, file a police report.
Remember to always be vigilant and check the legitimacy of any offer before giving away your personal or financial information.