Gift cards are now a top choice for scammers because they're easy to get and share, hard to trace, and nearly impossible to get back once used. In the first half of 2023, Australians lost nearly $110 million to these scams. Scammers like gift cards because they can be seen as cash, sold online easily, and are tough to trace or refund.
They can also use gift cards to buy cryptocurrency, making the money even harder to get back.
Key Takeaways
- Gift cards are a preferred payment method for scammers due to their anonymity and ease of use.
- Scammers often impersonate government officials or personal contacts to trick victims into sending gift card codes.
- Scammers may offer discounts or claim payment issues to manipulate victims into using gift cards.
- Victims are advised to report scams to the authorities and watch for warning signs like scratched-off PINs.
- Buying gift cards securely and using them quickly can help protect against fraud.
Why Scammers Target Gift Cards
Gift cards are a favorite for scammers in Australia. They are easy to get and can be used like cash. It's hard to trace or refund transactions. Scammers see the value in these cards and use them to steal from people.
Gift Cards Are Easy to Buy and Share
You can buy gift cards at many places, from big stores to small shops. Scammers take advantage of this by getting and sharing gift cards easily. This makes it simple for them to move money around.
They Can Be Treated as Cash
After getting a gift card's details, scammers can use it like cash. They can buy things or move the money to places like cryptocurrency. This makes gift cards a tempting choice for criminals who want to use stolen money fast.
Difficult to Trace or Refund
Scammers also like gift cards because it's hard to track or get refunds. Gift card purchases don't have the same security as other payments. This makes it easier for scammers to get away with their crimes.
Gift cards are easy to get, can be used like cash, and are hard to trace. This makes them a top choice for scammers in Australia. Knowing this can help people stay safe from these scams.
Common Gift Card Scam Tactics
Scammers use many ways to trick people out of money with gift cards. They often pretend to be from big companies or government agencies. They say you must pay with gift cards right away to avoid trouble.
Phone Impersonation Scams
They try to scare you into giving them your gift card codes over the phone. They might say there's a problem with your account or you owe taxes. They tell you to buy gift cards to fix the issue.
Tampered Physical Gift Cards
Scammers also tamper with gift cards in stores. They write down the card and PIN, then stick a fake sticker over it. When you use the card, they take all the money.
Romance Scams on Dating Sites
On dating sites, scammers make fake profiles to trick people. They ask for gift cards as "gifts" or for an emergency. They use your trust and feelings to get what they want.
Many people lose money to these scams every day. It's important to be careful with gift cards. Knowing how scammers work can help you stay safe.
Phone scams and gift cards
Phone scams using gift cards are on the rise in Australia. Scammers pretend to be from the Australian Taxation Office (ATO), police, or government agencies. They try to make victims buy gift cards for fake taxes, fines, or legal problems. They might know some of your personal details and threaten arrest if you don't do what they say.
Australian Tax Office and Government Impersonation
Scammers often say you owe back taxes to the ATO and must pay right away with gift cards. They fake the ATO's phone number to seem real. These scammers use fear and urgency to get victims to act fast.
Personal Contact Impersonation
Scammers also pretend to be people you know, like friends, family, or work colleagues. They send messages saying they're in an emergency and need you to buy gift cards to help. They might have gotten your contact info from social media or other places, making it seem like they're telling the truth.
It's important to be careful and check who is calling or messaging you. These phone scams and gift card scams are real threats. Scammers often pretend to be from the ATO or other government agencies, or they impersonate personal contacts to steal money.
Recognising and Avoiding Gift Card Scams
To stay safe from gift card scams, be careful with any unsolicited requests to buy gift cards. These might come from someone claiming to be from a government agency, a company, or a friend. Don't answer these requests right away. Call the organisation or person back using a trusted method to check if the request is real.
Scrutinise Unsolicited Requests
Be careful of any unsolicited requests to buy gift cards, especially if they seem to be from a government agency, a company, or someone you know. Always make sure the request is genuine before doing anything.
Inspect Gift Cards Before Purchasing
When buying gift cards, make sure to inspect the cards for any signs of damage, like scratched PINs or open packaging. If the card looks like it's been messed with, don't buy it.
Verify Requests From Friends and Family
If someone you know asks you to buy gift cards, check with them first. It's possible their account has been hacked, and they don't know about the gift card scam.
By taking these steps, you can spot and dodge gift card scams. This way, you and your loved ones can stay safe from losing money.
Conclusion
Gift card scams are becoming more common in Australia. Scammers take advantage of how easy and like cash gift cards are to use to steal money. About 20% of people in an AARP survey found their gift cards were worthless.
Scammers have many ways to trick people with gift cards. They pretend to be big companies, make people pay to claim fake prizes, or swap active cards with dead ones. Many discounted gift cards online are fake, leaving buyers with nothing to use.
To avoid gift card scams, Australians need to be careful. Check any requests for gift card payments carefully. Make sure to check the cards before buying them. Always question any requests, even if they seem to come from someone you know. By being informed and careful, Australians can lower their chances of getting tricked by these scams.
FAQ
What are some common gift card scams?
Scammers often pretend to be from tech support, government agencies, or banks. They threaten victims with fines or fees if they don't send gift cards. They also copy down card numbers and PINs from store displays.
On dating sites, romance scammers ask for gift cards as "gifts" or to help with a fake emergency.
How do scammers use gift cards to steal money?
Scammers like gift cards because they're easy to get and can be used like cash. Once they get the card numbers and PINs, they can use the cards right away.
Gift cards are hard to refund or trace, making it tough for consumers to prove they didn't use the cards. Scammers can also move gift cards to untraceable cryptocurrencies, making it hard to get back the stolen money.
How do scammers impersonate government agencies or personal contacts?
Scammers pretend to be from the ATO, police, or other government agencies. They scare victims into buying gift cards for supposed back taxes or fines. They might know some of your personal details and threaten arrest if you don't buy the cards.
They also pretend to be friends, family, or colleagues. They send messages saying they're in an emergency and need you to buy gift cards to help them.
How can I protect myself from gift card scams?
Be careful of any unsolicited requests for gift cards, especially from government agencies or personal contacts. Don't respond to such requests. Instead, check with the organisation or person directly to see if the request is real.
Always check gift cards for any signs of tampering before buying them. If someone you know asks you to buy gift cards, confirm it with them first before doing anything.
