What to Know About Gift Card Scams and Safety Tips

July 1, 2026

If you think you have been the victim of a gift card scam or detect gift card fraud, contact the Federal Trade Commission immediately at 1-877-FTC-HELP or by filing a complaint at ReportFraud.ftc.gov. 

What to Know: 

• If someone is asking you to pay bills, taxes or other items with a gift card, you’re most likely dealing with a scammer.  
• Businesses, agencies and even individuals asking for or demanding payment with a gift card should set off alarm bells. No legitimate government agency, business, utility company, or tech support service would ask you for payment by gift card. 
• Learn more in this guide on gift card scams, explaining what they are, tips to avoid them, and steps if you identify gift card fraud. 

Your Guide to Safer, Stress-Free Gifting

Gifting should be an experience full of joy and free of hassle. That’s our mission at The Gift Card Shop. However, scammers can put a wrench in your plans to buy and use gift cards. With a little know-how, you can shop confidently and steer clear of these bad actors.  

Our gift card safety guide is your easy-to-use companion designed to inform and empower you to protect your gift cards. Read on to learn about how to avoid scams and what to do if you’ve been a victim of gift card fraud. 

Common Gift Card Scams

Gift card scammers typically try to steal your card’s details through a variety of tactics. Understanding their techniques can help you keep your information safe. You might be dealing with a gift card scammer if you experience one of these five most common scams:  

1. Impersonation of a family member requesting money urgently via gift card due to an accident or arrest. 
2. Threats from a government agency, bank, employer, or shipping service demanding payment by gift card. 
3. Romance scams in which individuals or bots encourage victims to send money via gift cards. They often act by gaining trust and emotionally manipulating victims.  
4. Phishing emails, fake customer support or balance checks, tech support pop-ups and spoofed messages. 
5. Utility shut off scams, where bad actors posing as utility companies reach out to victims and threaten to turn off their water, electricity or other utility unless a payment is made via gift card.  

Remember, anytime someone contacts you and insists that the only acceptable payment is via gift cards, you’re most likely dealing with a scammer. If you’ve been impacted, you’re not alone. Nearly 34% of U.S. adults report having been targeted by scams seeking gift card payments in 2023 alone. In this same year, consumers reported losing over $217 million to these scams. With these numbers in mind, remember, if what you’re hearing sounds like scammers asking for gift cards, it probably is. 

How Do Gift Card Scams Work?

Gift card scams work by creating timely situations that are, according to the scammer, only solved by a gift card. Scammers are pros at crafting believable stories that provoke you to act quickly. Whether it’s a caller pretending to be from the IRS, a spoofed email from a manager asking for urgent bulk cards, or a physical card that’s been tampered with, it’s important to recognize the behaviors of gift card scammers.  

Consider these types of tactics that play on your emotions, like fear or trust. These are common scams asking for gift cards: 

• Urgency: “Act now or face penalties.” 
• Authority: “I’m from your bank; your account is at risk.” 
• Secrecy and pressure: “Don’t tell anyone, this is confidential.” 
• Pressure to buy specific brands quickly and in large amounts. 
• Damaged packaging, mismatched numbers or scratched/altered PIN panels. 
• Gift card balance checker websites that don’t correspond with the balance site on the back of your card or in your eGift email.  

If you spot a conversation or request that sounds like it’s too good to be true or is pressuring you into using gift cards as the only solution, it’s likely a scam.  

Tips to Avoid Gift Card Scams

These simple steps make it easy to shop smart and help keep your balance safe. 

Best practices for securely purchasing and using gift cards: 

• Buy directly from trusted sources. 
• For physical cards, inspect packaging, the scratch-off area and barcodes for tampering. 
• Never share card numbers or PINs via phone, text or email. 
• If gifting, deliver the card in sealed packaging or use secure eGift delivery. 
• Keep receipts and activation confirmations until the card is fully used. 
• Avoid third-party marketplaces and “too-good-to-be-true” discount listings. 

How to verify any request for gift cards: 

• Confirm independently. Contact the organization using an official website or verified phone number, not the one provided in the message. 
• Check the purpose of the request. Legitimate agencies and reputable businesses won’t demand gift cards as the only payment method for bills, taxes or other similar items. 
• Exercise caution. If urgency or secrecy is emphasized, assume it’s a scam until proven otherwise. 

Practice safe online habits to help prevent gift card scams: 

• Use secure connections (HTTPS) and strong, unique passwords. 
• Purchase gift cards only from trusted and secure retailers. 
• Avoid clicking links in unexpected messages; navigate to official sites directly. 
• Monitor card balances after purchase and redemption to spot issues quickly. Use trusted sites to do this. 

What to Do If You Have Been Gift Card Scammed

Whether you’re buying gift cards for a present or you’ve received a card that you’re ready to spend, a little extra care can help keep things in order. Follow these tips for buying and using gift cards.  

If you’re a victim of a gift card scam, here are some steps you can take immediately: 

• Stop communicating with the scammer. 
• Gather evidence: Save emails, texts, receipts, and screenshots of any card numbers you shared. 
• Contact the gift card issuer right away to report fraud and request a hold on any remaining funds, if possible. 
• Change passwords on affected accounts right away, using strong, unique passwords that you don’t reuse elsewhere. 
• Avoid “recovery services” that charge fees and promise refunds as these are often more gift card scams. 

Report the incident 

• If you feel you have been the victim of a gift card scam, report it to local authorities and file a complaint with the Federal Trade Commission FTC Complaint Assistant. Check consumer notices for  New Jersey  and  Maryland residents. 
• Contact your local police department’s non-emergency line to file a report. 

The more we know how gift card scams work, the easier it is to spot scammers’ gift card tricks before they spoil the fun. 

Resources for Gift Card Safety

Explore educational materials available from these official resources and keep them on hand: 

• TheGiftCardShop.com Help Center for purchasing, delivery and redemption tips. 
• FTC articles on impostors, tech support and romance scams. 

FAQs About Gift Card Scams

How do gift card scams work? 

Gift card scams work through social engineering techniques in which scammers create situations that victims feel can only be fixed with a gift card. This might be a fake phone call from a distressed family member in a legal bind, a phony IRS collector, a phishing email that looks like it came from your bank, or any other scammer-created scenario that’s allegedly solved through the victim buying a gift card.  

The scammer convinces the victim to purchase a gift card and share its details as a way to pay and solve the fake problem.  

What do you do if you have been gift card scammed? 

If you believe you have fallen victim to a gift card scam, you should stop speaking to the scammer immediately. Save any evidence such as texts, receipts, emails, and any card numbers.  

Additionally, you should report it to local authorities and file a complaint with the Federal Trade Commission FTC Complaint Assistant. Check consumer notices for New Jersey and  Maryland residents. 

Contact the gift card point of purchase right away to start a fraud report and request a hold on any remaining funds. You should also change any passwords on affected accounts, using new unique passwords.  

How can you avoid gift card scams? 

Gift card scams are always evolving, so it’s important to stay alert for these situations. As a rule of thumb, if anyone ever calls you demanding a gift card, it’s most likely a scam.  

Does the IRS take gift cards? 

No, the IRS does not directly accept gift cards as a form of payment. If someone has contacted you claiming to be the IRS and they are requesting gift cards, it is a scam. Learn more about common IRS gift card scams. 

What are warning signs of gift card scams?  

Common gift card scam warning signs include secrecy and urgency. If you have to act quickly or if you’re not allowed to speak with anyone, it’s probably a scam.  

Shop with Confidence 

When you shop at TheGiftCardShop.com, you’ll find trusted brands, convenient delivery (many eGifts arrive in minutes) and friendly support when you need it.  

InComm Payments, owner of The Gift Card Shop, is always actively working to combat gift card fraud by staying on top of current schemes and working with partners to protect consumers. With our layered protection technology, we’ve incorporated everything from physical security features to back-end controls.   

Bookmark this page as your go-to guide to understanding gift card scams and share it with family and friends so they can shop smarter too.