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The Gift Card Scam and How to Avoid It!

The Gift Card Scam and How to Avoid It!

Posted on February 25, 2025

Gift cards are a popular choice for birthdays, holidays, and last-minute gifts. Unfortunately, they’ve also become a favorite tool for scammers. If you’re not careful, you could end up buying—or receiving—a worthless piece of plastic. Here’s what you need to know about the gift card scam and how to protect yourself.

Table of Contents

Toggle
  • How the Scam Works
  • Signs a Gift Card Might Be Compromised
  • How to Protect Yourself
    • 1. Inspect the Card Before Buying
    • 2. Keep Your Receipt
    • 3. Register the Card Immediately
    • 4. Avoid Gift Card Payments for Unfamiliar Requests
  • What to Do If You’ve Been Scammed
  • Stay One Step Ahead

How the Scam Works

This scam is shockingly simple. Criminals walk into a store and tamper with the gift cards hanging on display. They cover the card’s barcode with a fake one, usually a sticker, that links to their account.

When a customer buys the card and loads money onto it, the cash goes straight to the scammer. The buyer doesn’t realize anything is wrong until the recipient tries to use the card—only to find out the balance is zero.

Signs a Gift Card Might Be Compromised

Spotting a tampered gift card can be tricky, but here are some red flags:

  • Peel-Off Barcodes – A legitimate gift card barcode is printed directly on the plastic. If it looks like a sticker, be cautious.
  • Scratches or Damage – If the card looks like it’s been messed with, put it back.
  • Cards in the Front Row – Scammers tend to target the first few cards on display since they’re most likely to be grabbed by shoppers in a hurry.

How to Protect Yourself

Avoiding the scam doesn’t require high-tech tools—just a little awareness.

1. Inspect the Card Before Buying

Flip the card over. Does the barcode look tampered with? If you see a sticker or any sign of alteration, pick another card from the back of the rack or buy one directly from the customer service desk.

2. Keep Your Receipt

Always hold onto your receipt when purchasing a gift card. If the card turns out to be invalid, you’ll need proof of purchase to dispute the charge.

3. Register the Card Immediately

Many retailers allow you to register gift cards online. This lets you track the balance and report any issues before scammers can drain the funds.

4. Avoid Gift Card Payments for Unfamiliar Requests

No legitimate business, government agency, or utility company will ever ask for payment via gift cards. If someone demands payment in gift cards, it’s a scam—no exceptions.

What to Do If You’ve Been Scammed

If you or someone you know falls victim to a gift card scam, act fast.

  • Contact the retailer – Call the company that issued the card. Some retailers may be able to track the funds or even issue a replacement if you have proof of purchase.
  • Report the fraud – File a complaint with the Federal Trade Commission (FTC) and let the store know what happened. The more reports they get, the better they can prevent future scams.

Stay One Step Ahead

Scammers are always coming up with new tricks, but a little knowledge goes a long way. By staying vigilant and inspecting gift cards before purchasing, you can keep your money safe and ensure your gifts actually reach the people you intend. Stay sharp, and spread the word—because an informed consumer is a scammer’s worst nightmare.

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