Gift cards are a preferred payment method for scammers and are becoming more and more popular each year. Gift cards can be virtual or physical to represent a pre-paid amount that is topped up in a card and can be exchanged for goods and services. In this article, you will learn how to identify and Gift Card Scams and How to Spot Them.
It never seems you’ll be the one to fall for the cheap tricks of scammers, especially ones involving payment by gift cards. Until you actually get scammed. We must understand that there are thousands of scams happening every day. It’s a numbers game for the scammers.
According to the Federal Trade Commission, fraud losses top 10 billion dollars each year. Fraudsters make more money than some legitimate industries. They have fine-tuned some clever ways to separate you from your money. The best strategy is to learn how to spot them.
Why Gift Cards Are Used by Scammers?
Scammers prefer gift cards because they are easy to find and buy, and they offer fewer protections for buyers compared to other payment methods. Gift cards allow scammers to get quick cash, and the transactions are largely irreversible. Additionally, scammers can remain anonymous when using gift cards.
How can I protect myself from gift card scams?
To protect yourself from gift card scams, consider the following tips:
- Check Card Packaging: Inspect gift cards for any signs of tampering or alterations. Look for broken seals, scratched PIN areas, or any unusual stickers. If you notice anything suspicious, avoid purchasing that card.
- Keep Receipts: Always keep your gift card receipts. They serve as proof of purchase and can be helpful if you encounter any issues later.
- Report Scams: If you’ve fallen victim to a gift card scam, contact the gift card company immediately. They may be able to assist you or issue a refund.
Stay vigilant and be cautious when buying or using gift cards. Scammers are always finding new ways to exploit them.
Where Are Gift Cards Used Normally?
The obvious answer is, well, gifts. If you don’t know what present to buy for a friend or a relative, a gift card can take away that burden. However, they are also often used as a promotion by stores to encourage customers to purchase more goods. It’s also a good way to compensate angry customers for any hassle they have encountered.
Gift cards are also a good way to get paid for remote online work. For example, legit surveys for gift cards pay money this way to take away the burden of money transfer fees and taxes. It’s a win-win situation for everyone. Users earn money they can spend in real shops, and the platform doesn’t have to worry about global payment methods.
But the difference from online scams is that instead of receiving gift cards, you will be asked to pay for them. The only legit cases where you buy gift cards are when you do it for yourself, your friends, or for someone who works for you.
Tech support scams
The most common variation of this scam starts with a simple phone call. A person usually imitates a representative of some big tech company, such as Microsoft or Apple. He then will tell you something is wrong with your computer and require remote access.
Now, in some cases, a virus or other malware is already planted in the victim’s computer. Then, remote access isn’t necessary. The scammer can simply request a payment right away. In other cases, remote access creates problems that don’t exist.
It might involve installing some hardware or changing some settings in the operating system to create the illusion that there are problems. Then, he will ask you to pay to fix them and will hold your PC hostage until it’s fixed.
Lottery prize scams
These scams spread most via spam emails. A victim gets a message that he has won a prize, but in order to collect it, he needs to cover some costs first. This scam is effective because it plays on the psychological want to win something that everyone has.
To make it more effective, scammers creat a sense of urgency as if you won’t receive your winnings without making a payment in time. Often, these scams ask you to buy gift cards to win them.
Conclusion
Gift cards aren’t exclusively used by scammers, but their anonymity and irreversibility make them a great payment option for extracting money from victims. Understanding what gift cards are and how related scams work will make you more immune to them.
