Gift card fraud is becoming more common, and it’s important to stay alert. Scammers use tactics like fake emails or phone calls to trick people into sharing gift card codes. Others drain balances by exploiting security gaps before the card is even used. This kind of fraud not only leads to financial loss but can also cause emotional stress and embarrassment. Fortunately, many financial service providers offer support for reporting scams, and in some cases, you may be able to recover your balance.
In this blog, we’ll explain how gift card scams work and how to spot the warning signs. We’ll also share steps you can take to protect yourself and keep your gift cards safe. Whether you’ve been targeted or want to stay ahead, this guide covers what you need to know.
How Scammers Are Targeting Your Gift Cards and What You Can Do
Gift cards have become a go-to choice for birthdays, holidays, and last-minute gifts. But while they’re convenient for shoppers, they’ve also become a goldmine for scammers. Criminals are using clever tactics to trick people into handing over gift card details or draining them before they’re even used. The rise in these scams is costing consumers millions each year, with many victims unaware of the danger until it’s too late.
Whether it’s a call that feels urgent or a gift card that’s already been compromised at the store, scammers are exploiting gaps in awareness and security. By understanding how these frauds work and knowing what warning signs to look out for, you can stay one step ahead. The following sections break down the two most common types of gift card scams and offer practical tips to help you avoid becoming the next target.
Understanding Gift Card Scams
Gift card scams happen when someone tricks you into buying a gift card and then sharing the card number and PIN with them. This usually starts with a phone call, email, text, or message on social media that creates a sense of urgency. The scammer might pretend to be someone you trust or claim there’s a serious problem that only a quick payment can fix. Once they have the card information, they waste no time draining the balance, leaving you with nothing.
One of the most common warning signs is being told to go to a specific store and buy a certain type of gift card. Scammers may stay on the line while you complete the purchase and even encourage buying from multiple places to avoid drawing attention. Afterward, they’ll ask you to send the card number and PIN, sometimes even requesting a photo. If anyone demands this information, it’s a clear red flag. Always pause, think it through, and remember: real organizations will never ask for payment through a gift card. Stay alert, protect your gift cards, and don’t fall for the pressure.
Gift Card Draining Scams
Gift card draining is a growing and increasingly deceptive scam, especially during the holiday shopping rush. Unlike some fraud that happens after purchase, this scam starts before you even buy the gift card. Criminals tamper with the cards while they’re still on the rack, scanning and saving the card numbers using hidden tools. They may even replace the scratch-off protective film so the card appears untouched. Once a shopper activates the card at checkout, the scammer can quickly use the stolen number and drain the funds before the legitimate buyer has a chance to redeem them.
To protect yourself from becoming a victim, stay alert and follow these simple tips:
- Examine cards closely – Avoid any that look tampered with, damaged, or have packaging that seems loose or altered.
- Buy from secure locations – Choose cards kept behind the counter or ask a store employee to bring one from a secure area.
- Use the card promptly – The longer you wait, the more time scammers have to act.
- Register the card if possible – Some cards offer online registration to help protect your balance.
Taking proactive steps makes a real difference. Registering your card or using it right away helps lock out would-be thieves. Don’t give scammers the time or opportunity to strike. Staying cautious is your best defense.
Treat gift cards like cash, because to scammers, they’re just as valuable. Make it a habit to check for signs of tampering and report any suspicious cards to the store. It only takes a moment to inspect, but it could save you the full value of your gift.
Watch Out for “Structuring” Behavior
It’s important to know that splitting a large transaction into smaller ones, like buying multiple cards under a set dollar limit to avoid detection, could be seen as structuring, a federal offense.
Scammers often instruct victims to buy several cards below the reporting threshold to stay under the radar. If anyone pressures you to “keep it under $1,000” or “spread it across stores,” that’s a huge red flag. Real businesses don’t operate this way. When in doubt, pause the transaction and contact our Compliance Department immediately.
Outsmarting Gift Card Scammers: What You Need to Know
Gift cards might seem like a safe, no-hassle gift, but they’ve become one of the top tools for scammers looking to take advantage of people quickly and quietly. With tactics ranging from impersonation to physical card tampering, these scams can catch even the most cautious person off guard. The good news is that with a little knowledge and the right steps, you can protect yourself, and your wallet, from falling into their trap.
This guide walks you through how these scams work, what to do if you’ve been targeted, and the smartest ways to safely buy and use gift cards. Whether you’re buying one for a friend or just received a suspicious message, knowing the signs and acting quickly can make all the difference. Let’s break down how to stay safe in a world where convenience can sometimes come with a hidden cost.
How to Protect Yourself from Gift Card Scams
Scammers are skilled at creating believable stories, which is why staying alert is your first line of defense. If you receive an unexpected message, whether it’s a call, email, or text, asking you to buy gift cards, don’t rush. These requests often come with a sense of urgency or fear, pressuring you to act without thinking. Instead, pause, question the situation, and talk to someone you trust before making any decisions.
Stay informed and take smart precautions to lower your risk. Here are a few steps you can take right now:
- Learn how the scams work – Awareness helps you spot red flags quickly.
- Use digital gift cards when possible – They’re harder for scammers to tamper with.
- Only send cards to people you know – Never share card details with strangers or over unverified platforms.
- Avoid pressure tactics – Scammers rely on urgency, take your time and verify first.
Taking a few moments to verify a situation could save you from losing money.
Understand the Rules Behind the Scenes
As a registered Money Services Business (MSB), Order Express is legally required to monitor for and report certain suspicious activity, including those involving gift card fraud. If transactions involve $2,000 or more and appear suspicious (or $5,000 or more in specific record-based reviews), we may be required to file a Suspicious Activity Report (SAR) with federal authorities.
These reports help detect fraud, money laundering, and other financial crimes. So, if your gift card activity raises red flags, such as unusually large or frequent transactions, we may contact you for verification or take additional protective steps.
What to Do If You Gave a Gift Card to a Scammer
If you’ve accidentally shared a gift card with a scammer, don’t panic, but do act fast. Time is critical in these situations. Start by contacting the company that issued the gift card. Report the scam, give them the card number, and share any details you have about when and how it was used. While results aren’t guaranteed, some companies may be able to freeze the balance or even issue a replacement card if the funds haven’t been used yet.
You should also report the incident to the proper authorities. File a report with the FTC at (Reportfraud.ftc.gov), and let your bank know if you used your account to fund the purchase. If you believe the scam is part of a larger scheme or feels threatening, get in touch with local law enforcement. Acting quickly and providing all available information gives you the best shot at minimizing the damage and possibly recovering what was lost.
Compliance Note: Order Express may also submit a Suspicious Activity Report (SAR) if we determine the transaction pattern meets federal reporting criteria. While you won’t be notified directly if a SAR is filed, rest assured this is a standard legal obligation designed to help law enforcement track and stop financial fraud.
What to Do If You’ve Been Scammed With a Gift Card
If you’ve been caught in a gift card scam, don’t wait, take action immediately. Time is critical. Start by reaching out to the company that issued the gift card. Provide all the details you have, including the card number, your purchase receipt, and any transaction information. In some cases, if the balance hasn’t been used, the company may be able to freeze the funds or issue a replacement. While recovering gift card money can be trickier than disputing a credit card charge, some companies do have fraud protection policies in place.
Here’s what else you should do right away to report and reduce the damage:
- Contact the gift card issuer – Provide details and ask them to freeze or cancel the card.
- Report the scam to the FTC – Visit (ReportFraud.ftc.gov) to file a report.
- Notify your bank – If the card was bought with a debit or credit card, your bank might help.
- Inform local authorities – Especially if threats were made or if the scam appears part of a larger scheme.
Even though gift card scams can be difficult to trace due to their anonymity, law enforcement and cybersecurity experts do have tools to investigate these crimes. Techniques like financial tracking and digital forensics are sometimes used to follow the money and identify scam operations.
Responding quickly not only improves your chances of recovering some or all of your funds, it also helps prevent others from falling victim. By reporting scams, you contribute to the broader effort to shut down fraudulent networks. Don’t let embarrassment stop you, millions fall for these schemes, and speaking up is a powerful first step toward resolution.
Safest Ways to Buy Gift Cards
Gift cards are a convenient and thoughtful gift, but they’re also a common target for scams. To stay protected, it’s important to follow a few simple safety tips. First and foremost, remember that gift cards are for giving, not for making payments. If someone tells you to pay for anything with a gift card, it’s a scam. Always buy your gift cards from trusted retailers, either in-store or through official websites, and avoid third-party sellers or unfamiliar sources, as their cards may be compromised or fake.
When buying a physical gift card, inspect it carefully. Make sure the packaging is intact, the protective scratch-off strip is in place, and the PIN is hidden. If anything looks suspicious, choose a different card and alert a store employee. For an added layer of safety, consider choosing electronic gift cards that are sent directly to the recipient’s email or phone, this lowers the risk of physical tampering. Always keep your receipt and take a photo of the card and its number. These details can be vital if you need to report a problem later. Gift card scams are on the rise, but with the right precautions, you can shop confidently and help others stay informed too.
Protect Yourself and Report Suspicious Activity
If you believe you’ve been targeted by a gift card scam, act immediately. In addition to contacting the gift card issuer and the FTC, Order Express strongly encourages you to report any suspected fraudulent activity to our Compliance Department. Doing so helps prevent further incidents and allows us to respond swiftly.
Contact Order Express Compliance:
- Email: cumplimiento-usa@orderexpress.com
- Phone: 1-888-666-1602
Reminder: Order Express will never request gift card codes, personal data, or payment over the phone, email, or text. When in doubt; pause, verify, and report.
International Use Warning:
To protect your money and comply with financial safety regulations:
- Never share gift card numbers or PINs with unfamiliar or unverified individuals, especially across borders.
- Be cautious of international requests for gift card purchases, especially if they come with urgency or fear-based messaging.
- Remember: Gift cards are for giving, not for making payments.
Conclusion
Staying ahead of gift card scams starts with awareness and quick action. Whether you’re buying or receiving, always inspect physical cards, use them quickly, and report anything suspicious. Opting for digital cards or trusted platforms like Order Express adds an extra layer of security. If you suspect a scam, contact the card issuer immediately, report it to the FTC, and notify your bank. Every second counts. Protect your money, protect your peace of mind, and help shut down scammers by staying informed and vigilant. Your caution today can stop a scam tomorrow.
FAQs
What is the most common gift card scam?
It’s when scammers ask for payment via gift cards through fake calls or emails.
How can I check if a gift card is tampered with?
Look for loose packaging, scratched film, or mismatched serial numbers.
Can I get my money back after a gift card scam?
Sometimes yes, especially if you act fast and contact the issuer immediately.
Where is the safest place to buy gift cards?
Buy from behind-the-counter displays or trusted sites like Order Express.
Should I report gift card scams to authorities?
Yes, report to the FTC and local law enforcement to help stop fraud.
