Gift cards are an easy way to give someone a present. You can buy one at the supermarket, order one online or send one to a friend in another country.
But there is a reason scammers love them too.
A gift card can hold hundreds of dollars, and someone who gets its number and PIN may be able to spend that money without ever holding the physical card.
Even worse, criminals can sometimes steal the card details before you buy it. You pay for the card, load the money and take it home, only to discover that someone else has already spent the balance.
Gift card scams can happen at any time of year, but the holiday season creates more opportunities. People are buying presents, looking for special offers and sending gift cards to family and friends. Scammers know this.
So why do scammers ask for gift cards instead of a bank transfer or credit card payment? How do they steal money from cards sitting on shop shelves? And what should you do if you’ve already been caught?
Let’s look at how these scams work and, more importantly, how to protect yourself.
Why Do Scammers Want Gift Cards?
Have you ever wondered why a scammer asks you to buy an Apple, Amazon or Google Play gift card instead of asking for a bank transfer?
There is a reason.
Gift cards can give criminals quick access to money, while leaving victims with fewer ways to get it back.
Here are four reasons scammers like them.
1. They can spend the money without having the physical card
This is one of the biggest problems with gift cards.
Most gift cards have a card number and a PIN or redemption code. If someone gets these details, they may be able to use the balance online.
They don’t need to steal the physical card from your wallet.
For example, imagine you buy a $200 gift card for your daughter. You send a photo of the back of the card to someone who claims to be from your bank.
That person now has the details needed to try to spend the $200.
You could still be holding the card, but the money may already be gone.
2. It can be harder to get the money back
When someone makes an unauthorised credit card payment, you can contact your card provider and ask it to investigate. Depending on the situation, you may have options to dispute the payment.
Gift cards work differently.
Once the balance has been spent, getting it back can be difficult. The gift card company may be able to investigate, but it cannot always recover the money.
The US Federal Trade Commission (FTC) advises people who have been tricked into sharing gift card details to contact the company that issued the card immediately and ask for their money back. Some companies may be able to help.
3. They can be passed on or sold
Scammers don’t always spend the gift card themselves.
They may sell the card details to another criminal or pass them through a network of people who help move the money.
Western Australia’s Consumer Protection has warned that scammers can quickly sell gift card serial numbers on secondary markets after victims share them.
This can make it harder to follow where the money goes.
4. They can pressure you into making the payment for them
This is what makes many gift card payment scams so effective.
The criminal does not need to visit a shop or steal a card. They simply convince you to do the shopping.
They may pretend to be your boss, a government officer, a family member or someone you have met online. They tell you to buy gift cards and send them the numbers and PINs.
Sometimes they stay on the phone while you visit the shop and make the purchase. They may even tell you what to say if a cashier asks why you are buying so many cards.
The FTC warns that these requests are scams. No genuine government agency or business will ask you to pay a bill, fine or fee with gift cards.
Remember: Gift cards are not completely untraceable. The company that issued the card may have records of when it was activated and where the balance was used. But finding out what happened to the money is not the same as identifying the criminal or getting your money back.
Two Main Types of Gift Card Scams
There are two important types of gift card scams to understand.
Payment scams: Someone tricks you into buying gift cards and handing over the numbers and PINs.
Gift card draining: A criminal steals or copies the card details before you buy the card, then waits for you to add money.
The first relies on tricking you. The second can happen without you ever speaking to a scammer.
Let’s look at how each one works.
Gift Card Draining: How Criminals Steal Money Before You Use the Card
Imagine buying a $100 gift card at the supermarket for a family member.
You pay at the checkout, put it in your handbag and take it home. But when your family member tries to use it, the balance is already gone.
How could that happen?
In some cases, criminals have stolen the card details before the customer buys the card.
This is called gift card draining.
The US Federal Trade Commission has warned shoppers about this type of fraud. Criminals can take gift cards from shop displays, steal the numbers and PINs, return the cards to the shelves and wait for a customer to add money.
Here is how it can happen.
1. Criminals take gift cards from shop displays
A criminal may visit a shop and take gift cards from a display.
They open the packaging and record the card numbers and PINs. They may use tools to open the packaging carefully, so the damage is not easy to notice.
They then put the cards back on the shelf. This is not a made up story but its happening in real world- organized crime.
The next customer may pick up a card that looks perfectly normal.
This does not mean a shop employee is always involved. Criminals can tamper with cards themselves, and the cards may be returned to the display without the retailer knowing.
2. They wait for someone to buy and activate the card
A gift card sitting on a shop shelf usually has no money loaded onto it.
The money is added when a customer pays at the checkout.
The criminal who has already copied the card details waits for the card to be activated. They may check the card’s balance or use other methods to find out when money has been added.
Once the card has a balance, they can try to spend it using the stolen details.
This is the worrying part: you may be holding the physical gift card while someone else is already using the money on it.
3. They spend the balance before you do
Once the criminal knows the card has money on it, they may use the stolen number and PIN to redeem the balance.
The person who bought the card may not notice anything until they or the person receiving the gift tries to use it.
By then, the money may already be gone.
Has this happened in Australia?
Yes.
In August 2026, ABC News investigated reports of tampered gift cards being sold in Australian supermarkets. Many of the reports involved Apple gift cards.
The investigation found that a man had been convicted after Coles worked with police to catch him tampering with Apple gift cards in supermarkets in Sydney.
The ABC also reported that criminals were taking cards from shop displays, stealing the codes and returning the cards to the shelves. Once customers bought and loaded the cards, the criminals could spend the money before the customers used them.
This is not just an Australian concern. The FTC has also warned US shoppers about gift card tampering.
Can criminals use technology to check gift card balances?
Some criminals use automated tools to check card numbers and look for active balances.
For example, a criminal who has stolen a large number of gift card details may try to find out which cards have been activated and have money available.
However, the exact method depends on the gift card company and its systems. We should not assume every card can be checked or drained in the same way.
The important thing to understand is that criminals may not need to steal the money at the moment you buy the card. They may already have the details and simply wait for you to load it.
How to Spot a Tampered Gift Card Before Buying It
You cannot always tell whether a gift card has been tampered with, but a quick check can help you spot some warning signs.
Before paying, look at the following:
- Protective stickers: Check whether they are missing, loose, lifted or look as if they have been replaced.
- PIN area: Look for scratches, peeling or signs that someone has already tried to reveal the PIN.
- Packaging: Avoid cards with torn, opened or unusual packaging.
- Barcode: Look for extra stickers or anything that seems out of place.
- Card details: If the number or PIN is already visible, choose another card.
If something looks suspicious, don’t buy it. Show the card to a cashier or store manager.
A card that looks normal is not guaranteed to be safe, but checking it is still worth doing.
Gift Card Payment Scams: 7 Tricks to Watch Out For
Gift card draining is only one part of the problem. Many scammers still use phone calls, emails, text messages and social media to convince people to buy gift cards and send them the details.
The story changes, but the goal is the same: get you to hand over the card number and PIN.
Here are seven common tricks.
1. Government, tax or police payment scams
Someone says they’re from the tax office, Social Security or the police, and you owe money.
Government agencies never take payment in gift cards.
In FTC reports from 2018 to 2020, nearly half of the people who paid someone posing as a government authority used gift cards. The FTC also has a guide to government impersonator scams.
The warning sign: Real government agencies and police services do not ask you to pay fines, taxes or penalties with gift cards.
2. Fake tech support scams
A pop-up appears on your computer warning that your device has a virus or your personal information is at risk.
It may show a phone number and tell you to call for help.
The person who answers may pretend to work for Microsoft, Apple or another technology company. They claim they have found a serious problem and offer to fix it.
Then they ask you to pay using gift cards.
The warning sign: Legitimate technology companies do not ask you to pay for technical support with gift cards. Never call a number shown in an unexpected security pop-up.
3. Boss or workplace gift card scams
You receive an email or message that appears to come from your boss or manager.
They say they are in a meeting or dealing with something urgent. They need you to buy gift cards for staff, clients or a business event.
They ask you to send photos of the cards or share the numbers and PINs.
The message may look convincing because it uses your manager’s name and familiar work language.
The warning sign: Check the request with your manager using a phone number or email address you already know. Do not reply to the suspicious message to confirm it.
4. Family emergency scams
Someone contacts you pretending to be your child, grandchild or another family member.
They may say they have lost their phone, been arrested, had an accident or need urgent help.
Some scammers use AI voice tools to make a call sound like a real family member.
They may ask you to buy gift cards and send the numbers as quickly as possible.
The warning sign: Stop and check. Call your relative using a number you already have. You can also contact another family member. A real emergency should not stop you from checking that the person is who they say they are.
5. Romance scams
A person you meet online may spend weeks or months building a relationship with you.
They send loving messages, talk about a future together and make you feel that you can trust them.
Then a problem appears.
They may claim they need money for travel, medical bills, customs fees or an emergency. They might ask you to buy Apple, Google Play or Amazon gift cards and send the details.
The relationship can feel very real. That is what makes this scam so painful.
Western Australia’s Consumer Protection has warned about serious losses involving gift card payments and romance scams. In one reported case, a woman sent $77,000 worth of gift cards to someone she believed was her overseas love interest.
The warning sign: Someone you have only met online should never ask you to send gift cards, money or card details. Be especially careful if they ask you to keep the relationship or payments secret.
6. Fake prize and giveaway scams
You receive a message saying you have won a holiday, lotto, phone or cash prize.
But before you can claim it, you must pay a fee, tax or delivery charge.
Read the FTC’s guide to fake prize and lottery scams.
7. Investment and money-making scams
A scammer promises high returns from cryptocurrency, shares or another investment.
They may show you fake profits on a website or app. When you try to withdraw your money, they invent extra fees, taxes or account charges.
They may tell you to pay these charges using gift cards.
The warning sign: Gift cards have no place in a genuine investment payment. Stop if anyone asks you to buy them to unlock profits or withdraw money.
How to Protect Yourself From Gift Card Scams During the Holidays
Gift cards are popular during the holiday season because they are quick and easy to buy. That also makes them attractive to criminals.
Here are some simple steps to protect yourself.
1. Buy from a trusted shop or official website
Buy gift cards from the retailer or brand itself, or from a shop you know and trust.
Be careful with cards advertised at unusually low prices on social media, online marketplaces or unfamiliar websites. They may be fake, stolen or already used.
2. Check the card before paying
Look at the packaging, barcode and PIN area. If anything looks scratched, opened or changed, choose another card and tell a staff member.
3. Pay by credit card where possible
The FTC recommends paying by credit card where possible because it may offer more protection if something goes wrong.
The protection available depends on your country, card provider and the circumstances. A credit card payment does not guarantee a refund, but it may give you another way to challenge the purchase.
4. Keep your receipt
Keep the receipt and a record of the gift card number. You may need these details if the card does not work or the balance disappears.
Store photos of the card and receipt somewhere private. Never post them online or send them to someone who contacts you unexpectedly.
5. Be careful when buying gift cards online
Use the official website of the brand or a trusted retailer.
Check the website address carefully before entering payment details. Avoid links sent in unexpected emails or messages.
A fake website can look very similar to the real one.
6. Never share gift card numbers or PINs with someone who contacts you unexpectedly
A caller may sound professional. An email may look as if it came from your manager. A message may even sound like a family member.
Pause and check before doing anything.
If someone says you must act now, keep the request secret or buy several cards from different shops, treat it as a warning.
7. Talk to your family about gift card scams
Scammers target people of different ages and backgrounds. They use fear, trust and family relationships to pressure people into sending money.
Many of us worry about an older parent getting caught. The best thing you can do is make it safe for them to tell you.
Shame is what keeps people quiet, and quiet is what scammers need. For more ideas, see our guide on spotting an AI voice scam, including how a family code word can help.
Bottom Line
A gift card scam depends on one thing: getting you to act before you think. If anyone asks you to pay with a gift card, that’s your answer. It’s a scam.
If you’ve already paid, move quickly and call the card company first. Then report it, and don’t be hard on yourself.
Want to see how safe your everyday habits really are? Take our free 2-minute Digital Safety Quiz.
FAQ
Can gift cards be traced?
Can gift cards be traced?
The card company can see whether any money is still on a card, and sometimes they can freeze it. Once the money is spent, it’s very hard to trace.
Why do scammers ask for gift cards?
Because gift cards are quick to turn into cash and hard to trace. A scammer who has the number and PIN can spend the money very quickly.
What should I do if I’ve been gift card scammed?
Call the company that issued the card right away and say it was used in a scam. Keep the card and receipt, then report it to your local government authority.
Will I get my money back?
Sometimes, if you act fast and the money is still on the card. There’s no guarantee, so call the gift card company as soon as you can.
What is gift card draining?
It’s when thieves tamper with gift cards in a shop, copy or swap the codes, and spend the money after you buy and activate the card. The DC Attorney General explains how it works, and section 7 above covers how to protect yourself.
Is it a scam if someone asks me to pay by gift card?
Yes, every time. Real businesses and government agencies don’t take payment in gift cards.
Other Scams to look out for:
Sources
- U.S. Federal Trade Commission: Avoiding and Reporting Gift Card Scams
- U.S. Federal Trade Commission: Gift cards top scammers’ wish lists (data spotlight, December 2020)
- U.S. Federal Trade Commission: Scammers prefer gift cards, but not just any card will do (data spotlight, 2021)
- U.S. Federal Trade Commission: ReportFraud.ftc.gov
- Government of Western Australia, Consumer Protection: Scam losses involving gift cards surge past $1 million (22 July 2026)
- Office of the Attorney General for the District of Columbia: Alert warning residents about gift card scams (15 December 2025)
- ABC News: Inside the gift card tampering scam spreading nationally (31 August 2026)
- Scamwatch (ACCC): What to do if you’ve been scammed, Report a scam and fake gift card and voucher scams
- Australian Government: ReportCyber
- IDCARE, Australia and New Zealand’s national identity and cyber support service
