Gift Card Fraud Predicted To Hit $228 Million This Year. Stay Alert

Scams have evolved into new, more sophisticated forms in the internet age. According to the Federal Trade Commission's predictions, scammers are projected to defraud innocent customers of more than $228 million via gift card cons in 2022. This article illuminates these deceptive tactics, offers advice on not falling prey, and provides guidance if you've unfortunately already been ensnared by such schemes.

Gift card scams typically involve fraudsters convincing victims to buy gift cards and share their numbers, a tactic the FTC has unequivocally labeled as fraudulent. It is critical to remember that any demand for gift card numbers is a sure sign of a scam.

Scammers often employ high-pressure tactics to create a sense of urgency, imitating legitimate businesses, charities, or even friends and family members. They will demand immediate payment, typically via gift cards, and once they have the gift card numbers, they can drain the cards of funds.

The FTC has observed a worrying trend of fraudsters exploiting humanitarian causes, such as wildfire relief efforts in Maui. Scammers request donations via phone calls or direct messages, making it essential to donate only through verified organizations. The FTC further advises using credit cards for donations, given their enhanced security features.

The American Red Cross, the Hawai'i Community Foundation, the Maui United Way, and the Maui Food Bank are all good places to donate to if you want to help with relief efforts. Animal welfare groups are also helping pets whose owners have been forced to evacuate.

Certain gift card providers are implementing strategies to combat fraud, like identifying deceptive transactions and seizing ill-gotten funds. If you've fallen prey to a scam, there are definite actions that can be taken:

• Inform the issuer of the gift card, typically the retailer where it's redeemable, such as Amazon, Apple, Target, or Walmart.
• Explore options for retrieving your lost money. Some companies are proactive in detecting fraudulent transactions and freezing the associated funds, allowing victims to recover their money if the scammer hasn't yet emptied the card.

Awareness is your best defense against scams. Familiarize yourself with common scam tactics, such as creating a false sense of urgency, mimicking legitimate charities, and requesting payments via gift cards, wire transfers, or cryptocurrency. As reiterated by several companies, no legitimate transaction will require payment exclusively through gift cards.

Big corporations like Amazon and Walmart have issued warnings against using their gift cards for payments to other businesses or individuals. They encourage customers who suspect they have been scammed to contact their customer protection review team or report the incident to their helpline.

Staying vigilant and informed can safeguard your hard-earned cash from the escalating risk of fraudulent gift card scams. Never succumb to offers that appear overly enticing; they usually have hidden pitfalls. In case you've fallen victim to such a scam involving a gift card, get in touch with the issuing authority and FTC promptly; there's a possibility that you may recover part or all of your lost funds.

Keep yourself protected and updated; information is power.