Michigan Attorney General Dana Nessel is re-issuing her consumer alert, Paying with a Gift Card, as part of her Holiday Scams Campaign to urge consumers to be cautious of gift card scams, a growing form of fraud that preys on unsuspecting individuals. A Federal Trade Commission (FTC) report revealed that in 2023 alone, $217 million in gift card-related fraud was reported by consumers.
Gift card scams often follow a predictable pattern. Victims receive a call, email, or text message from someone claiming to represent a government agency, utility company, or tech support, or even posing as a friend or family member in need. The message is urgent and convincing. The sender or caller demands immediate payment using a gift card. Once the scammer obtains the gift card number and PIN, the funds are nearly impossible to recover.
Scammers using this method may claim to be from:
• Government Agencies: Fraudsters impersonate officials from the IRS or Social Security Administration, demanding payment for back taxes or fines. Fact: No legitimate government agency will demand immediate payment, especially via gift cards.
• Tech Support: Scammers pose as representatives from Apple or Microsoft, alleging issues with your computer. They request payment via gift card and may attempt to gain remote access to your device.
• Family or Friends in Emergencies: Using AI or voice cloning, scammers can impersonate loved ones, claiming they are in urgent need of help. Verify such claims independently.
• Sweepstakes or Prizes: Fraudsters say you’ve won a prize but must pay fees with a gift card to claim it. Ask yourself: Did you even enter the contest?
• Utility Companies: Imposters threaten to shut off your power or water unless you pay with a gift card. Legitimate utility companies don’t accept gift cards as payment.
• Romantic Scams: Scammers on dating websites may appeal to emotions, convincing victims to send gift cards as a form of financial assistance.
• Fake Overpayments: Scammers send counterfeit checks for more than the agreed amount, asking victims to use gift cards to refund the difference.
If you’ve purchased a gift card and have shared the card number and PIN with a scammer, follow these steps:
• Report the Scam to the Gift Card Issuer: Contact the company immediately. Some issuers, such as Amazon and Walmart, have programs to help recover funds.
• Request a Refund: Explain the situation to the card issuer. While refunds aren’t guaranteed, companies are increasing efforts to combat fraud.
• Report the Scam to Authorities: File a report with the FTC and the Attorney General’s Consumer Protection Team. These reports help law enforcement identify patterns and stop scammers.
To avoid falling victim to gift card scams:
• Never use gift cards to pay debts. Gift cards are intended for gifting—not for paying bills or fines.
• Be skeptical of urgent payment requests. Legitimate organizations will not pressure you to act immediately.
• Verify claims independently. Contact the company or individual directly using verified contact information.
• Be cautious with online and phone interactions. Don’t share gift card details unless you are sure of the recipient’s legitimacy.
Gift card scams often follow a predictable pattern. Victims receive a call, email, or text message from someone claiming to represent a government agency, utility company, or tech support, or even posing as a friend or family member in need. The message is urgent and convincing. The sender or caller demands immediate payment using a gift card. Once the scammer obtains the gift card number and PIN, the funds are nearly impossible to recover.
Scammers using this method may claim to be from:
• Government Agencies: Fraudsters impersonate officials from the IRS or Social Security Administration, demanding payment for back taxes or fines. Fact: No legitimate government agency will demand immediate payment, especially via gift cards.
• Tech Support: Scammers pose as representatives from Apple or Microsoft, alleging issues with your computer. They request payment via gift card and may attempt to gain remote access to your device.
• Family or Friends in Emergencies: Using AI or voice cloning, scammers can impersonate loved ones, claiming they are in urgent need of help. Verify such claims independently.
• Sweepstakes or Prizes: Fraudsters say you’ve won a prize but must pay fees with a gift card to claim it. Ask yourself: Did you even enter the contest?
• Utility Companies: Imposters threaten to shut off your power or water unless you pay with a gift card. Legitimate utility companies don’t accept gift cards as payment.
• Romantic Scams: Scammers on dating websites may appeal to emotions, convincing victims to send gift cards as a form of financial assistance.
• Fake Overpayments: Scammers send counterfeit checks for more than the agreed amount, asking victims to use gift cards to refund the difference.
If you’ve purchased a gift card and have shared the card number and PIN with a scammer, follow these steps:
• Report the Scam to the Gift Card Issuer: Contact the company immediately. Some issuers, such as Amazon and Walmart, have programs to help recover funds.
• Request a Refund: Explain the situation to the card issuer. While refunds aren’t guaranteed, companies are increasing efforts to combat fraud.
• Report the Scam to Authorities: File a report with the FTC and the Attorney General’s Consumer Protection Team. These reports help law enforcement identify patterns and stop scammers.
To avoid falling victim to gift card scams:
• Never use gift cards to pay debts. Gift cards are intended for gifting—not for paying bills or fines.
• Be skeptical of urgent payment requests. Legitimate organizations will not pressure you to act immediately.
• Verify claims independently. Contact the company or individual directly using verified contact information.
• Be cautious with online and phone interactions. Don’t share gift card details unless you are sure of the recipient’s legitimacy.
