Avoid a popular holiday scam
WATCH YOUR STEP
Financial and frudulent scams often ramp up during the holiday season. One of the most popular scams during the holidays and year round is through gift cards. Picture this: Someone asks you to pay for something by putting money on a gift card, like a Google Play or iTunes card, and then give them the numbers on the back of the card. Know that if you’re ever asked to do this, the person on the other end of the line is trying to scam you. No real business or government agency will ever insist you pay them with a gift card. Anyone who demands to be paid with a gift card is a scammer.
Remember, gift cards are for gifts, not for payments. Gift cards are popular with scammers because they’re easy for people to find and buy. They also have fewer protections for buyers compared to some other payment options. Once they have the gift card number and the PIN, they have your money.
Often the scammer will say it’s urgent. They say you have to pay right away or something terrible will happen. They want to scare or pressure you into acting quickly, so you don’t have time to think or talk to someone you trust.
The caller usually tells you which gift card to buy. They might say to put money on an eBay, Google Play, Target, or iTunes gift card. They might send you to a specific store—often Walmart, Target, CVS, or Walgreens. Sometimes they tell you to buy cards at several stores so cashiers won’t get suspicious. The caller might stay on the phone with you while you go to the store and load money onto the card. If this happens to you, stop. It’s a scam.
The caller may ask you for the gift card number and PIN. The card number and PIN on the back of the card let the scammer get the money you loaded onto the card. Don’t give them those numbers. You’ll lose your money, and you won’t be able to get it back. Here’s a list of common gift card scams:
• The caller says they’re from the government such as the IRS or the Social Security Administration. They say you have to pay taxes or a fine.
• Someone calls from tech support, maybe saying they’re from Apple or Microsoft. They say there’s something wrong with your computer and you have to pay them to get it fixed.
• The scammer may even pretend to be a friend or family member in an emergency and ask you to send money right away —but not tell anyone. This is a scam. If you’re worried, hang up and call the friend or relative to check that everything is all right.
• Someone says you’ve won a prize, but first, you have to pay fees or other charges with a gift card. Remember: no honest business or agency will ever make you pay with a gift card. Ask yourself, did you even enter that sweepstakes?
• The caller says they’re from your power company, or another utility company. They threaten to cut off your service if you don’t pay immediately. Utility companies don’t work that way.
If you paid a scammer with a gift card, tell the company that issued the card right away. Keep the card and any receipts you have.
Stick to stores you know and trust. Avoid buying from online auction sites because the cards may be fake or stolen. Make sure the protective stickers are on the card and that they do not appear to have been tampered with. Also check that the PIN number on the back isn’t showing. Get a different card if you spot a problem.
Keep your receipt. This, or the card’s ID number, will help you file a report if you lose the gift card.
—www.consumer.ftc.gov
