Gift Cards Scams

Preview

Gift card scams are a major source of fraud. Here are some examples of how they work, and also how you can protect yourself.

I got an email from an old grade school friend. We recently connected via our high school reunion. He emailed me to catch up and included a question regarding my use of Amazon. This email was sent from his real Comcast email address, so I believed it was from him. However, the reply to address, which I didn't examine carefully, was his name then a zero@outlook.com. For example, johnsmith0@outlook.com. Again, that was plausible, but I honestly didn't notice the switch.

The From address was his correct Comcast address. The special "reply to" address you can use was the phony look-alike Outlook.com address.

Here's the pitch.

Good to hear from you. I am having a problem with my Amazon account. I have been trying to purchase a $200 Amazon E-Gift card in $100 denomination off Amazon since yesterday, but to no avail. I spoke with someone from their customer service, and I was told there’s been a policy violation on my account by an unauthorized user, which made them lock me out of my account.

I intend to purchase the gift for my niece, whose birthday was yesterday. Could you please help me purchase it from your end? I will reimburse you as soon as possible. I'm just trying to put a smile on her face. Let me know if you can assist me with this, so i can send you her email address.

Thanks

To be honest, I was falling for it until the email said, "I will reimburse you as soon as possible." My old friend would have offered to put a check for $200 in the mail immediately. But also, not having been in contact for so long, he would have found someone else to buy the gift cards for him.

At that point, I checked the address and noticed the email address switch. I called to let him know his email was compromised. Apparently, I wasn't the first and he was working on it with Comcast. He changed his password and setup 2-factor authentication.

Gift cards of all types are being used for scams. Be careful if anyone wants you to pay for anything with a gift card. Be careful when giving them.

Store Gift Card Scams

Cards available at stores have a problem.

These cards get drained and then replaced. You end up buying cards with no money in them!

Gift Card Websites

Scammers use botnets to attack gift card websites and guess the numbers on the back and then drain the cards. Apparently, over half the traffic to gift card websites are botnets trying to drain cards. Americans reported $228.1 million in losses to gift card-related scams in 2022, according to the FTC Consumer Sentinel.

Ways to Avoid Getting Caught by Scammers

Miscreants use botnets to scan balance checking sites at retailers for already activated cards. Then they drain those. Once you activate your card, quickly drain it yourself.
Don't pay tech support or IRS or others who request gift cards. It is unlikely to be legitimate.
If you buy cards at stores, buy from a rack immediately in front of the cashier, or avoid buying from retail stores altogether.
Buy cards for restaurants that must be presented when you buy your meal.

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Home Forms About Current Newsletter subscribe Search All Articles Browse by Category Security Internet Mobile Business Hardware Fun		Gift Cards Scams Preview Gift card scams are a major source of fraud. Here are some examples of how they work, and also how you can protect yourself. I got an email from an old grade school friend. We recently connected via our high school reunion. He emailed me to catch up and included a question regarding my use of Amazon. This email was sent from his real Comcast email address, so I believed it was from him. However, the reply to address, which I didn't examine carefully, was his name then a zero@outlook.com. For example, johnsmith0@outlook.com. Again, that was plausible, but I honestly didn't notice the switch. The From address was his correct Comcast address. The special "reply to" address you can use was the phony look-alike Outlook.com address. Here's the pitch. Good to hear from you. I am having a problem with my Amazon account. I have been trying to purchase a $200 Amazon E-Gift card in $100 denomination off Amazon since yesterday, but to no avail. I spoke with someone from their customer service, and I was told there’s been a policy violation on my account by an unauthorized user, which made them lock me out of my account. I intend to purchase the gift for my niece, whose birthday was yesterday. Could you please help me purchase it from your end? I will reimburse you as soon as possible. I'm just trying to put a smile on her face. Let me know if you can assist me with this, so i can send you her email address. Thanks To be honest, I was falling for it until the email said, "I will reimburse you as soon as possible." My old friend would have offered to put a check for $200 in the mail immediately. But also, not having been in contact for so long, he would have found someone else to buy the gift cards for him. At that point, I checked the address and noticed the email address switch. I called to let him know his email was compromised. Apparently, I wasn't the first and he was working on it with Comcast. He changed his password and setup 2-factor authentication. Gift cards of all types are being used for scams. Be careful if anyone wants you to pay for anything with a gift card. Be careful when giving them. Store Gift Card Scams Cards available at stores have a problem. These cards get drained and then replaced. You end up buying cards with no money in them! Gift Card Websites Scammers use botnets to attack gift card websites and guess the numbers on the back and then drain the cards. Apparently, over half the traffic to gift card websites are botnets trying to drain cards. Americans reported $228.1 million in losses to gift card-related scams in 2022, according to the FTC Consumer Sentinel. Ways to Avoid Getting Caught by Scammers Miscreants use botnets to scan balance checking sites at retailers for already activated cards. Then they drain those. Once you activate your card, quickly drain it yourself. Don't pay tech support or IRS or others who request gift cards. It is unlikely to be legitimate. If you buy cards at stores, buy from a rack immediately in front of the cashier, or avoid buying from retail stores altogether. Buy cards for restaurants that must be presented when you buy your meal. Further Reading Fox Business: Gift-card Draining McAfee report: The Gift That Keeps on Taking An article from the FTC about avoiding and reporting Gift Card Scams A February 27, 2024, FTC Consumer alert: Date: April 2024 This article is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.
		I attempt to provide reliable information, but make no warranty as to the accuracy or safety of these articles. I disclaim all legal responsibility for what following these instructions may do. Follow my advice at your own risk

Keeping clients' computers safe and profitable for over 30 years

Gift Cards Scams

Preview

Store Gift Card Scams

Gift Card Websites

Ways to Avoid Getting Caught by Scammers

Further Reading