Gift Card Scams: How to Spot Them This Holiday Season

Quick Answer: Gift card scams often involve someone pressuring you to pay with a gift card, selling a tampered card, or tricking you into sharing card numbers and PINs online. No legitimate business or government agency will ask you to pay with a gift card. If something feels off, stop, verify the request, and never share your gift card information.

Gift cards make holiday shopping convenient, but scammers use them because once you share the card number and PIN, it can be difficult to recover the money. Knowing the warning signs can help protect your holiday budget.

The Most Common Gift Card Scams

Scammers may impersonate the IRS, a utility company, tech support, your employer, or a friend or family member to demand immediate payment with gift cards. Others tamper with cards in stores by scratching off PINs, replacing barcodes, or resealing packaging. Once you load the card, a scammer may access the funds.

Phishing messages and fake balance-check websites can also trick you into entering gift card numbers and PINs. Scammers may also use fake giveaways, prizes, or online sellers offering discounted gift cards to steal your information or money.

Red Flags That Should Stop You

Watch for anyone who:

• Creates urgency or tells you to keep the request secret.
• Asks you to read card numbers or PINs over the phone or send a photo of the card.
• Tells you to buy cards at multiple stores.
• Sends you to a balance-check website that does not match the retailer’s official site.
• Demands gift cards as payment.

How to Buy and Use Gift Cards Safely

Buy gift cards from reputable retailers or directly from the brand’s website. Inspect physical cards for signs of damage or tampering before purchasing. Keep your receipt and the card information until the recipient uses the full balance.

Check balances only through the retailer’s official website or the phone number printed on the card.

What to Do If You Have Been Scammed

Contact the gift card issuer immediately and ask whether it can freeze or recover the funds. Keep the card, receipt, and any messages related to the scam.

Report the scam to the Federal Trade Commission at ReportFraud.ftc.gov. If you shared your personal or account information, contact your financial institution right away to help secure your accounts and watch for suspicious activity.

How Create CU Helps Members Stay Protected

Create Credit Union offers fraud monitoring, card controls, and account security tools to help members protect their finances. Our member-focused team is also available to help you talk through suspicious activity and determine your next steps. 

Remember, Create CU or any reputable business or organization will never ask you to pay with a gift card.

The Bottom Line

Your best line of defense is awareness and education. Create CU offers free fraud resources to help you recognize scams and protect your accounts. Visit our Report Fraud page to learn more, or call us at 702-228-2228 if you notice suspicious activity on your account.