BBB Study: Gift cards are an increasingly popular tool for scammers

In addition to telling consumers how to recognize and avoid gift card scams, the report recommends: 1. The FTC should consider amending the Telemarketing Sales Ruleto prohibit payment with gift cards. 2. The industry should continue to educate the public about the potential pitfalls of gift cards by: 2.1. … See more

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FAQs about BBB Study: Gift cards are an increasingly popular tool for scammers Coupon?

Why do scammers love gift cards?

Since BBB issued its 2021 study, Gift Card Payment Scams, BBB reveals why scammers love gift cards, scammers doubled down on gift cards as a method to steal money from consumers while the public embraces digital versions of the cards. For years, scammers preferred a gift card as payment because it's treated like cash. ...

Where can I find information about a gift card scam?

Contact information for cards most often involved in scams is found at ftc.gov/giftcards. Government agencies in both the U.S. and Canada tell BBB that prosecuting government impostor scammers, who increasingly ask victims for gift cards, has been a priority for law enforcement. ...

Are online shoppers at high risk for gift card scams?

Online shoppers are at high risk for encountering gift card scams, according to BBB data. In July, Blou in Dahlert, Texas, told BBB she found a golf cart for sale on Facebook Marketplace. She reached out to the seller, who asked for $2,000 in Apple gift cards as payment. ...

Are gift card scams still underreported?

Since FTC research finds less than 4.8% of fraud victims report their losses to BBB or a government agency, gift card scams are likely still underreported. Public education remains the number one method of deterrence, Weaver said, because alert consumers can often spot a scam before any money changes hands. ...

Which gift & reload card brands are most likely to be scammed?

The FTC’s 2020 Data Spotlight found, “...Most reported gift and reload card brands are eBay, Google Play, Target, iTunes, and Amazon. Together, these five brands make up approximately 39% of the reports where people indicated they paid a scammer with a gift or reload card.” ...

How do law enforcement and BBB fight gift card fraud?

Law enforcement and BBB are making efforts to fight gift card fraud. These measures include not only arrests and prosecutions of the money mules that receive and launder victim money, but also steps to work with gift card companies and retailers to help prevent this type of fraud. BBB efforts to warn of gift card fraud. ...