Fraud Friday: Guard Your Gift Cards

Jun 14, 2024 | General News

Welcome to this week’s edition of Fraud Friday with Guthrie County State Bank! On this Fraud Friday, we’re highlighting a common and troublesome issue: gift card scamming. Here are ways to spot this scam and prevent falling victim to it.

Check for the “Gift’ in “Gift Card”
Before purchasing a gift card, ask yourself: are you buying it for a birthday, anniversary, or another special occasion? In other words, is it a gift? Or, did someone on the phone instruct you to buy a gift card to pay for something and then give them the numbers off the back? This is a classic gift card scam. Remember, gift cards are ONLY for gifts. If it’s not for a legitimate gift-giving reason, then fraudsters are hard at work.

How Gift Card Scams Work
Scammers use various tactics to get you to buy gift cards – especially cards from common big companies like Google Play, Apple, or Amazon. Here are the three steps they take to acquire your purchased gift cards:

  1. Urgency Tactics: Bad guys are pros at creating a sense of urgency. Remember: urgency and intimidation are big red flags that you’re being tricked.
  2. Very Specific Instructions: Scammers will often get specific with their scam and dictate which card to buy and where. They do this in order to make sure their scams go as smoothly as possible.
  3. Demand Card Information: Eventually they’ll ask for card numbers and PINs to steal your money. Never share these details.

Common Tricks in Gift Card Scams
Here is a common bag of tricks for gift card scammers:

  • Government Impersonation: Governments don’t use gift cards.
  • Posing as Tech Support: Real tech teams won’t let you pay for support with a gift card.
  • Fake Emergencies from “Loved Ones”: Don’t fall for voice cloning! Hang up and call your loved one at their trusted phone number.
  • “You’ve Won a Prize!” Scams: Scammers often promise prizes but demand that associated fees be paid with gift cards.
  • Utility Threats: Threatening to cut off services unless you pay immediately with a gift card? A legitimate utility company will never do that.
  • Romance Scams: If an online connection you’ve never met before starts asking for gift cards, they are NOT the one for you.
  • Overpayment Scams: Scammers will go so far as to send you bogus checks then demand “refunds” be paid with gift cards.

What to Do If You Gave a Gift Card to a Scammer
If you’ve fallen victim:

  • Report the Scam: Contact the gift card company immediately.
  • Ask for a Refund: Some companies may offer refunds.
  • Inform the FTC: Report the scam to the Federal Trade Commission.

Remember the Rule:
Gift cards are ONLY for gifts. Any other use is likely a scam.

Stay vigilant, informed, and protected. We’ve got your back at Guthrie County State Bank. For more information, visit ftc.gov/giftcards.

Spread the Word!
Share this information to protect others from financial harm.