Gift Card Scams Are Surging: How to Spot and Avoid Them

Gift cards are convenient, but they’ve also become a favorite tool for scammers. In December 2025, District of Columbia Attorney General Brian Schwalb issued an alert warning residents about a spike in gift card fraud. While the alert is aimed at Washington, D.C., the tactics used are widespread, and the advice applies to consumers everywhere.

Here’s what you need to know about how these scams work, how to recognize them, and what to do if you or someone you know has been targeted.

What Happened

The Office of the Attorney General for the District of Columbia (OAG DC) published a consumer fraud alert on December 15, 2025, highlighting a rise in gift card scams. The alert notes that scammers are contacting residents by phone, email, or text, pretending to be from government agencies (like the IRS or Social Security Administration), tech support companies, or even utility providers. They pressure victims into buying gift cards—often from major retailers like Amazon, Target, or Google Play—and then demand the card’s code or PIN. Once that code is shared, the money is gone, and it’s nearly impossible to recover.

The alert itself is part of a broader pattern: the Federal Trade Commission (FTC) received over 40,000 reports of gift card fraud in 2024 alone, with reported losses exceeding $200 million. Scammers favor gift cards because they are untraceable, irreversible, and can be cashed out quickly.

How These Scams Work

Gift card scams typically follow a predictable script. The caller claims there’s an urgent problem—an unpaid tax bill, a compromised computer, a frozen bank account—and insists that the only way to resolve it is by paying with gift cards. They often stay on the phone while the victim goes to a store, buys the cards, and reads off the numbers.

Common scenarios include:

  • Government impersonators: Someone claiming to be from the IRS, Social Security, or even the local sheriff’s office threatens arrest or legal action unless you pay “fines” with gift cards.
  • Tech support scams: A pop-up or phone call warns that your computer is infected. The “technician” demands payment for a fix, often via gift cards.
  • Romance scams: A person you’ve met online (but never in person) asks for gift card codes to cover an emergency or travel expenses.
  • Fake sweepstakes: You’re told you’ve won a prize but need to pay “fees” or “taxes” first with gift cards.

No legitimate government agency, company, or organization will ever demand payment in gift cards. That alone is a red flag.

Red Flags to Watch For

  • Payment method: Any request to pay with gift cards, especially iTunes, Google Play, Amazon, or Target cards, is almost certainly a scam.
  • Urgency and secrecy: The caller insists you act immediately and tells you not to tell anyone—including store employees or family members.
  • Unsolicited contact: You didn’t initiate the call, email, or text. The scammer reached out to you.
  • Threats or promises: They threaten arrest, deportation, or account closure, or they promise a big prize or refund if you pay first.

If you encounter any of these, stop the conversation. Hang up, delete the message, and do not buy any gift cards.

What You Can Do

If you or someone you know has already fallen for a gift card scam, act quickly:

  1. Contact the gift card issuer immediately. For most major brands (Amazon, Apple, Google, Target, etc.), there is a customer service line specifically for fraud. Provide the card number and purchase details. The company may be able to freeze the funds if the card hasn’t been redeemed yet. Time is critical—once the scammer uses the code, the money is gone.
  2. Report to the FTC at ReportFraud.ftc.gov. Your report helps law enforcement track scams and may assist in recovery efforts.
  3. File a police report with your local department. Provide all documentation: receipts, card numbers, phone numbers, and any messages.
  4. Notify the store where you bought the cards. Some retailers have policies to flag or stop large gift card purchases when they suspect fraud.

To prevent future scams:

  • Only buy gift cards from trusted sources (retailer directly or authorized resellers).
  • Never share the code or PIN on the back of a card with anyone, including over the phone or online.
  • If you receive a suspicious call or message, verify the claim independently. Look up the official phone number or website—do not use the number provided by the caller.
  • Talk to older relatives and friends who may be less familiar with these scams. Gift card fraud disproportionately targets older adults.

Why This Alert Matters Nationwide

The D.C. alert is a timely reminder that gift card scams are not going away. They spike during holiday seasons—when people are buying and receiving gift cards—but they happen year-round. Scammers adapt their stories to current events: tax season, data breaches, and even natural disasters are all used as hooks.

The core advice is universal: if anyone asks you to pay with a gift card, it is a scam. No exceptions. The government, your bank, and legitimate companies have other, verifiable ways to collect payments.

Stay skeptical. If something feels off, trust that instinct. A few minutes of caution can save you hundreds or thousands of dollars.

Sources

  • Office of the Attorney General for the District of Columbia. “Attorney General Schwalb Alerts District Residents About Gift Card Scams.” December 15, 2025. Link to OAG DC alert
  • Federal Trade Commission. “Gift Card Scams.” FTC Consumer Advice. Updated 2025. Link to FTC page (Note: exact 2024 report data cited from FTC Data Spotlight, 2025.)
  • Federal Trade Commission. “New FTC Data Show Gift Card Fraud Continues to Rise.” February 2025. Link to FTC press release