Gift Card Scams: Why Scammers Love Them

Gift cards represent the perfect payment method for criminals—untraceable, irreversible, and immediately convertible to cash. The FTC reports that gift cards are now involved in over 40% of fraud cases, with median losses of $1,000 per victim.

Scammers demand gift cards because they function like cash but move electronically. Once a victim provides the card numbers and PINs, criminals sell the codes on dark web marketplaces within minutes. Unlike credit cards or bank transfers, gift card transactions cannot be reversed or tracked to the recipient.

Common scenarios: Impersonators claiming to be IRS agents, tech support, or relatives in emergency situations exclusively request payment via Target, iTunes, or Google Play cards. Legitimate organizations never request gift card payments. Anyone demanding gift cards as payment is running a scam—no exceptions. Report attempts to the FTC and the gift card company immediately.