Gift Card Scams Are on the Rise: What You Need to Know to Protect Your Money

Earlier this month, Attorney General Brian Schwalb issued an alert warning District of Columbia residents about a surge in gift card scams. The advisory, published by the Office of the Attorney General for the District of Columbia, outlines how scammers trick people into buying gift cards and handing over the codes—often draining the funds within minutes. While the alert is aimed at D.C. residents, the tactics described are used nationwide, and the advice applies wherever you live.

Gift card scams have been a persistent problem for years, but they continue to evolve. Official warnings like this one are a good reminder that these schemes are still common and can catch anyone off guard.

What Happened

According to the alert, scammers typically pose as representatives from government agencies, tech support companies, or even a friend or family member in distress. They create a sense of urgency: a supposed tax debt that must be paid immediately, a computer infected with a virus that needs fixing, or a loved one who is in trouble and needs money fast.

The caller insists that payment be made with gift cards—often Google Play, Apple, or other widely available store cards. The victim is told to buy the cards, scratch off the back to reveal the code, and read the numbers over the phone or send a photo. Once the scammer has those codes, they can redeem the value almost instantly. Tracing or recovering the money afterward is extremely difficult.

Why It Matters

Gift card scams are effective because they exploit trust and urgency. The request for payment via gift cards is itself a major red flag—legitimate businesses and government agencies never demand payment in that form. Yet the pressure of the moment, combined with caller ID spoofing that makes the call appear official, can cause even cautious people to comply.

The dollar amounts add up. The Federal Trade Commission reports that consumers lost hundreds of millions of dollars to gift card scams in recent years, and the numbers keep climbing. While older adults are often targeted, people of all ages have fallen victim. The scam works because it plays on emotions: fear, confusion, or the desire to help someone in need.

The alert from the Attorney General is a timely reminder that no one is immune. It also underscores how hard it is to get money back once it has been loaded onto a gift card and spent by a scammer.

What Readers Can Do

If you or someone you know is currently being pressured to buy gift cards for payment, stop. Take a breath. That request is almost certainly a fraud.

Here are practical steps to take right now:

  • Hang up or stop communicating. Do not share any gift card codes you may have already purchased.
  • Contact the gift card issuer immediately. In some cases, if you act very quickly, the company may be able to freeze the card or refund the money. This is not guaranteed, but it’s worth trying.
  • Report the scam. File a complaint with the Federal Trade Commission at ReportFraud.ftc.gov. If you are in D.C., you can also contact the Office of the Attorney General’s consumer protection hotline. Elsewhere, your state attorney general’s office or local consumer protection agency can help.

To prevent future scams:

  • Never pay for anything with a gift card unless you are purchasing a gift for someone you know. No government agency, utility company, or tech support service will ask for payment via a gift card.
  • Verify unexpected requests. If someone calls claiming to be from a company or agency, look up the official phone number yourself and call back. Do not use a number the caller gives you.
  • Be skeptical of caller ID. Scammers can fake the name and number that appear on your screen.
  • Talk to family and friends. Many scams target older adults or people who are less familiar with digital payment methods. A short conversation can go a long way.

Sources

Office of the Attorney General for the District of Columbia. “Attorney General Brian Schwalb Issues Alert Warning District Residents About Gift Card Scams.” December 2025.

Federal Trade Commission. “Gift Card Scams.” ftc.gov.