Menu Close

Regulator says consumers lose $148m in Target gift cards, offers tips on avoiding scams

Holiday Online Shopping

*US Federal Trade Commission says most gift card scams start with a phone call from someone impersonating a branch of the government, bank, or a business

Isola Moses | ConsumerConnect

As this year gradually draws to a close, the United States (US) Federal Trade Commission (FTC) has said that Target gift cards are scammers’ top choice.

It was gathered that Google Play, Apple, eBay, and Walmart cards remain popular with fraudsters, too.

During the first nine months of 2021, 40,000, the regulator disclosed that consumers  reported losing whopping $148million in gift cards to scammers in cyberspace.

The Federal Trade Commission also noted these are staggering numbers that have increased each year for the past several years.

It said since 2018, gift cards have been the most frequently reported payment method for fraud.

Most gift card scams, the regulator stated, start with a phone call from someone impersonating a branch of the government like the Social Security Administration or a business.

The FTC further said: “The caller might threaten to freeze your bank account and tell you that you must buy gift cards to avoid arrest or to keep access to your money in your bank account.

“They will tell you to stay on the phone as you head to the store to buy gift cards to, they often claim, solve the ‘problem’ they are calling about.

“They will also ask you to provide the numbers on the back of the card you buy. These are all signs of a gift card scam.”

The Commission said if you find yourself heading for the store to buy gift cards because someone on the phone told you so, stop.

No matter who calls, texts, or e-mails you telling you to pay with a gift card, it is always a scammer, said FTC.

It added that the government and legitimate businesses will never call you demanding payment with a gift card.

You might even get an e-mail from a scammer impersonating your boss, asking, for example, to pay for the upcoming office party with gift cards and promising to pay you back later.

This is an example of the business e-mail compromise (BEC), which, according to the FBI, caused $1,8 billion worth of damage 2020, in the US.

Scammers are not only after your money, and they might also try to get access to the company’s sensitive data.

Gift card scams are widespread, and you might easily get bilked if a gift card looks like an excellent last-minute holiday present for your loved ones.

There’s a high demand for slightly cheaper gift cards, and many consumers buy them from shady channels.

Typically, those gift cards have been previously used and can be empty.

Kindly Share This Story

 

Kindly share this story