Gift card scams: what you need to know

A friend of a friend sends you a Facebook message asking you to pick up some gift vouchers for your mutual pal who’s in hospital. You’re going into town anyway, so you pop into M&S to buy them.

Then that friend says they’ve found just what they need online, so would you mind sending them the code for the gift voucher? And, if it’s not too much trouble, scratching off the panel on the back to give them the security code.

That all sounds pretty plausible, doesn’t it? But it could be a scam. You want to cheer your friend in hospital up – and you’d like to help the people around them at a difficult time, but as soon as you send the details, the card gets used and the funds are depleted.

The scammers are clever, and they’ve played on your emotions.

Gift card scams: what do they look like?

Paul Maskall is Strategic Fraud Prevention and Behavioural Lead for UK Finance, and he’s an expert on the behaviour of scammers – and our responses to it. He says that with these scams, fraudsters will often try to take advantage of your good nature.

“The emotional side is really important. If I’m a criminal I’ll try and create a response to get you to do what I want,” he says.

Typically, a scammer will contact you and ask you to buy gift cards, either in a shop or online, then ask you to hand over the codes so they can redeem them or sell them on to other criminals.

One way of doing this is through ‘advance fee scams’, where you must pay a fee upfront to ‘unlock’ a gain or reward – a gift card is often the way you’ll be required to send the funds.

“You might have ‘won’ a prize or a lottery and the scammers will say you need to authenticate this, so go and buy a certain amount of gift cards and then give us the codes to unlock your prize,” says Maskall.

“So, you get people turning up to retail establishments buying boatloads of gift cards in order to ‘verify’ themselves.”

While most people know to guard their bank details, they’re less protective over gift cards, which makes them ideal for other forms of financial fraud, like romance scams.

“Often, [fraudsters will] ask victims to accept money into their bank account and then transfer it to someone else using bank accounts, MoneyGram, Western Union, iTunes vouchers or other gift cards,” says Surrey Police on its page documenting the dangers of romance fraud.

“These scenarios are very likely to be forms of money laundering and you could be committing a criminal offence.”

While it seems like it should be easy to not be manipulated by such tactics, the desire to meet someone can make people far more vulnerable.

“In any situation where you’re making that human connection, whether that’s friendship or meeting someone on a dating site, there’s very often a need being met,” says Maskall.

“You might be lonely or isolated and you’ll be reaching out for a connection. In that moment, scammers know they can manipulate you by promising companionship or excitement.

How a scammer can try and trap you

We were recently sent an example of a potential scam through an email a reader received from a ‘friend’, showing the emotional manipulation used to get you onside, and the ease with which the conversation starts.

- How are you doing?
I'm unable to speak over the phone due to a serious throat pain caused by laryngitis. Can I ask a favour from you?
Dave*

- Hi Dave - I’m well. Yes, sure fire away!
Hope you’re alright….sounds painful?
Anika*

- Thanks for the response. I need to get a Google Play gift card voucher for my niece, who is diagnosed with stage 4 mesothelioma cancer. It's her birthday, but I can't do this now because I'm currently out of town.

I tried purchasing it online, but unfortunately, I got no luck on that. I was wondering if you could purchase it at any nearest store around you. I'll reimburse you; let me know if you can handle this.

Awaiting your kind reply.

Thanks,

Dave

*Names changed to protect identities

Fortunately, the reader in question felt this was uncharacteristic behaviour from their friend and didn’t respond further.

A man sat on a chair in a suit using a mobile phone

What red flags should I look out for?

“[Scammers] might say: don’t bother with a bank transfer, it’s probably easier if you buy gift cards and send me the codes,” says Maskall.

Gift card fraudsters don’t just contact you directly: as with any scam they can also target you through social media.

“If you’re scrolling through Facebook you might see an advert that looks relatively OK, but as you click through you realise you need to buy a gift card to enter a competition. That’s when you should stop and ask yourself if it’s a scam,” says Maskall.

You might also receive phone calls, text messages or emails. “We’ve seen evidence of communication through phishing emails (scam emails that often invite you to visit a website before stealing your details), and also people impersonating somebody on social media – through a direct message on Facebook, for example,” says Maskall.

Messages that tell you urgent action is required, or the use of authority, are common tools for scammers to use, as they force you to take action on the spot. So, be vigilant for scammers impersonating official bodies.

No such organisation will ask you to buy a gift card to pay a bill or fine, so if it feels wrong, you’re right to question it.

“We’ve seen examples where scammers have posed as the DVLA or HMRC, phoning people and telling them they need to buy gift cards to pay their taxes or a fine,” says Maskall.

“On the surface, that may seem implausible that an organisation might ask you to do that, but when we get ‘in the moment’, and I create that panic in you, you’re not thinking objectively.”

“There’s also the level of emotion: is the person emailing you trying to get you to do something quickly?” adds Maskall.

“Legitimate organisations won’t do that – and they won’t have an issue in you getting in contact with them to check.

“Whether you get a phone call, an email, a direct message on social media or a text message, in this day and age it’s always good to find another method of communication to confirm who you’re talking to.

“So, if someone contacts you via Facebook, call them. With the number of scams going on, it’s always good to double check and do your due diligence.”

How to prevent being scammed – and what to do if you are

The important thing to do is slow down before you rush out and buy a gift card.

“Stop, take that moment - take five - and reflect on that situation and challenge it. Challenge your own emotions. If you have been the victim of a scam, call your bank immediately and report it to Action Fraud,” says Maskall.

More importantly, if you have been the victim of a scam, never feel ashamed or embarrassed about being caught out, as it’s not a reflection on your intelligence or awareness.

“Frauds and scams are the only sort of crimes we’d say you’d ‘fall for’. That’s quite shaming in some ways and people think: ‘Why did I fall for that?’” adds Maskall.

“But I wouldn’t turn round and say: ‘I can’t believe you fell for that burglary.’ A criminal has targeted you to manipulate and steal something.”

Buying a gift card? Check it hasn’t been tampered with

Reports of ‘gift card draining', where criminals tamper with cards in shops and then spend them, are also becoming more frequent.

So, if you’re buying a gift card, always keep the receipt – and check that the panel on the back hasn’t been scratched off already, to expose the security code.

Often, scammers will try to glue it back on, so make it look like it hasn’t been tampered with. Then, when the card is loaded up with money at the tills, they’ll spend it before the customer can.