FTC advisory Everyone October 16, 2018

Scammers increasingly demand payment by gift card

Scammers are increasingly demanding payment via gift cards, especially iTunes and Google Play cards. This payment method is now used in over one-quarter of reported fraud cases.

ImpersonationTech-support scamGovernment impersonationRomance scamGrandparent scam

How it works

A scammer contacts you by phone, email, or text and impersonates a business, government agency, family member, or friend. They create urgency and claim you owe money or have a problem that requires immediate payment. They instruct you to buy gift cards from stores like Walmart, Target, Walgreens, or CVS, then read them the PIN number from the back. Scammers favor gift cards because the transaction is quick, largely irreversible, and keeps them anonymous.

Red flags to watch for

Caller or message demands payment by gift card
They tell you not to talk to anyone about why you are buying the cards
They direct you to buy multiple cards from different stores
They insist you cannot use other payment methods
They pose as IRS, iTunes support, or a family member in an emergency

What to do

Do not buy a gift card or read a PIN number to anyone who demands it over the phone, email, or text. Legitimate businesses and government agencies never ask for payment this way. Hang up immediately and call the company or agency directly using a number from their official website. Report the incident to the card issuer, then file a complaint at FTC.gov/complaint.

If this reached you

Scam Sentinel would flag it: likely a scam Show it the text, email, or caller and you get a plain-language verdict with the reason, and exactly what to do next. A second opinion in the moment, before you tap, pay, or pick up.

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Source: FTC . Scam Sentinel summarizes official guidance in plain language; it is a decision aid, not a guarantee.