The Better Business Bureau released a new study that shows increased popularity in gift cards among scammers.
According to the BBB, more billions of dollars were spent on gift cards last year throughout the world. The amount also includes gift cards connected with scams.
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Once a scammer gets the money from a gift card, it's almost impossible to get it back.
“If you are being asked or required to make payment via gift card for whatever reason, you almost certainly are dealing with a scam,” says Warren King, president of the Better Business Bureau of Western PA. “Scammers capitalize on gift cards not carrying the same protections as credit or debit cards, so funds spent on gift cards are funds victims cannot get back.”
According to the Better Business Bureau, losses due to gift card scams totaled $2,953,174 in 2020.
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People ages 65 and older make up the largest group of victims among these types of scams.
The more popular gift cards used in scams include eBay, Google Play, Target, iTunes and Amazon.
The BBB says fraudsters often create a sense of urgency through threats or with promises of major lottery prizes, making the victims feels that they have to buy these gift cards immediately in order to reach a successful resolution to the situation.
The Bureaus said an Allegheny County resident was targeted by someone claiming to be from "Cash America" and offering an advanced feed payday loan. The victim purchased two Google Play gift cards totaling $115. The scammer got the gift card money, but the victim never received the loan.
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The BBB says the public should be aware that government agencies do not collect payments via gift cards and to be leery of statements that tell you gift cards are a safe way to pay a debt.
Anyone who thinks they may be the victim of a gift card scam should contact the issuer of the gift card. They should also file complaints with the Better Business Bureau, the Federal Trade Commission, the Internet Crime Complaint Center and the Consumer Financial Protection Agency.