Be cautious of these 6 gift card scams during the holiday season.

As the holiday season approaches, many of us are preparing to spread joy by purchasing gift cards.

During the holiday season, gift cards are a popular choice for convenient presents. However, be cautious as they are also a favorite target for scammers. Here are six sneaky gift card tricks to watch out for.

We've got your back with tips on how to outsmart scammers and keep your money safe.

1. Display rack gift card trick

A recent gift card scam involves manipulating the cards on display racks in retail stores. Scammers will either record the activation code on the card or place a custom barcode sticker over the real barcode, enabling them to instantly load the cash onto their own card after you purchase the gift card. As a result, when you or your recipient attempt to use the gift card, it will be void or inactive.

How to avoid this scam

Before purchasing a gift card, inspect the packaging for signs of tampering, such as torn or resealed wrapping or stickers covering the barcode or card number. Additionally, select a card from the back of the rack, as fraudulent cards are often placed at the front of the display by scammers.

2. Impersonation gift card trick

Scammers often pose as someone you know or trust, such as a family member, romantic interest, company, or government official, to trick you into sending them money urgently. They may contact you through phone, text, email, or social media and fabricate a false story or emergency.

You will be asked to purchase a gift card or several gift cards and then submit a photo of the card or the numbers on the back. After obtaining the gift card details, they will vanish with your funds and sever communication.

How to avoid this scam

It's important to never send money or gift cards to individuals you don't know personally or haven't met in person. If someone claims to be someone you trust, verify their identity by contacting them directly through a different channel.

Be cautious when receiving calls, as scammers can manipulate caller ID and use threats or promises to pressure you into acting quickly without thinking. Additionally, never pay for anything with a gift card, as legitimate companies and government agencies will never ask for this form of payment.

3. Resale gift card trick

Another way to trick with gift cards is by buying or selling them on online platforms, such as websites, apps, or social media groups. Scammers will offer to sell you gift cards at a discounted price or buy your unwanted gift cards for cash.

Gift cards purchased online can be fake, empty, or stolen, putting you at risk of fraud or identity theft.

How to avoid this scam

It is advisable to purchase or sell gift cards only from reputable sources, such as official retailers, authorized resellers, or trusted friends and family. It is crucial to avoid buying or selling gift cards from strangers online, especially if they offer a deal that seems too good to be true.

Be cautious when sharing personal information or gift card details with unknown individuals, and opt for secure payment methods like credit cards or PayPal to protect your transactions.

4. Phishing gift card trick

This holiday season, a widely used gift card scam technique is phishing, which is an online fraud that aims to deceive individuals into disclosing their personal or financial information. Fraudsters will send emails, text messages, or pop-up notifications that appear to be from reputable companies, such as retailers, banks, or tech support services.

The company will assert that there is an issue with your account, order, device, or security and demand that you verify your identity, update your information, or resolve the problem. They will then direct you to click on a link, open an attachment, or call a number, followed by requesting payment with a gift card or providing gift card information.

How to avoid this scam

Be cautious when receiving unsolicited messages and avoid clicking on links, opening attachments, or providing personal or financial information to unknown individuals.

Be cautious of messages that create a sense of urgency, pressure, or fear, as they are intended to make you act impulsively. If you have any doubts about the authenticity of a message, contact the company directly using a verified website, phone number, or email address.

Installing and actively running antivirus protection on all your devices is the best way to protect yourself from falling victim to scammers and hackers who use gift card tricks to steal your money and personal information through phishing. Antivirus software can help prevent clicking on malicious links, accessing fake websites, and receiving phishing emails and text messages by detecting and alerting you of any malware in your system, ultimately protecting you from being hacked.

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5. Loyalty program gift card trick

The gift card trick entails loyalty programs, which are incentive programs that provide customers with points, discounts, or freebies for their loyalty. Scammers may pose as representatives of a loyalty program that you are a member of or eligible to join.

You will be informed that you have won a prize, sweepstakes or a promotion, but you must pay a fee, tax or shipping cost to claim it. Afterward, they will request payment with a gift card or require your gift card information.

How to avoid this scam

Be cautious of unsolicited notifications claiming you've won something, and never pay money or fees to receive a prize from a legitimate loyalty program. Avoid providing personal or financial information to anyone who contacts you unexpectedly.

Be cautious of messages that generate excitement, curiosity, or greed, as they are intended to prompt you to act impulsively. If you have any doubts about the authenticity of a message, contact the loyalty program through a verified website, phone number, or email address.

6. Fake balance checker scam

Scammers create fake websites or phone services that claim to check gift card balances. They trick victims into giving their gift card numbers and PINs, which scammers then use to drain the funds from the card.

How to avoid this scam

Be cautious of unsolicited calls or messages asking for your gift card information, even if they claim to be from a legitimate company. Always verify the authenticity of the website before entering your gift card details.

How to safely give and receive gift cards

• Instead of purchasing physical gift cards directly from the store, consider buying them online through trusted websites and apps that offer a percentage back on all purchases.
• To avoid gift card racks at retail stores, such as the grocery store, consider digging back into the pile and inspecting them like a detective before buying.
• If a gift card is offered, register it directly with the retailer to track the balance.
• It is likely a scam if callers make unusual claims and ask for gift card transactions.
• Avoid buying gift cards from online auction sites like eBay.
• Be cautious when sharing personal financial information with individuals offering gift cards in-store or online.
• To safeguard yourself from scammers and hackers who try to steal your money and personal information using gift card tricks, especially through phishing, it is essential to have strong antivirus software installed on all your devices. The best way to protect yourself from malicious links that install malware and potentially access your private information is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android, and iOS devices.

I've been scammed! What to do next?

If you or someone you know has been a victim of identity theft due to a gift card scam, there are several steps you can take to protect yourself.

Inform the account provider and change your passwords if you regain control of your accounts.

Examine bank statements and checking account transactions to trace the origin of unusual spending.

Protect yourself from identity theft by using a service that monitors your personal information, alerts you of any suspicious activity, and provides insurance and legal assistance in case of fraud.

Notify the Federal Trade Commission and the gift card company of any breaches.

It is recommended to seek legal counsel before communicating with law enforcement when dealing with criminal identity theft and if being a victim of such crime hinders your ability to obtain employment or housing.

Notify the three primary credit reporting agencies and potentially add a fraud warning to your credit history.

You can perform your own background check or obtain a copy of one if you found out that your information has been misused by a criminal.

If you've been a victim of identity theft due to a gift card scam, the first step is to act quickly to minimize the damage and prevent any further harm.

Kurt's key takeaways

Be cautious of six common gift card scams during the holiday season. If something seems suspicious or too good to be true, trust your instincts and don't hesitate to ask questions or leave. Gift cards are meant to bring happiness, not stress, so keep these tips in mind while shopping and sharing this season.

Have you ever been a victim of a gift card scam? If so, please share your experience and how you handled it. Contact us at Cyberguy.com/Contact.

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