Gift Card Scams Are Still on the Rise: What the Latest Alert Means for You

If you’ve ever been told to buy a gift card to pay a bill, a fine, or even to help a romantic partner, you were likely being scammed. Gift card scams are one of the most persistent frauds in the United States, and they show no sign of slowing down. In December 2025, District of Columbia Attorney General Brian Schwalb issued a fresh alert warning residents about this exact tactic. While the alert is aimed at Washington, D.C., the advice applies to anyone, anywhere who uses gift cards.

This article breaks down what the alert says, why gift card scams work, and—most importantly—how you can protect yourself.

What Happened: The Alert

Attorney General Schwalb’s office put out a consumer fraud alert reminding residents that scammers frequently demand payment through gift cards. The alert notes that these requests often come in the form of a phone call, email, or text message that appears to be from a trusted source—such as a tech support company, a government agency like the IRS, or even a new romantic interest met online.

The scammers then pressure the victim to buy specific gift cards (often from major retailers like Target, Walmart, or Apple) and read the numbers on the back of the card over the phone. Once the scammer has those numbers, the money is gone almost instantly. Gift cards are not like credit cards; they are essentially cash, and there is rarely a way to reverse the transaction.

Why It Matters

Gift card scams are effective because they exploit a common product that most people have seen or used. The scam works because many consumers don’t realize that legitimate companies and government agencies never ask for payment with a gift card. The Federal Trade Commission (FTC) has repeatedly warned that any demand to pay with a gift card is a scam—period.

The stakes are high. According to FTC data, gift card scams have cost consumers hundreds of millions of dollars in recent years. The median loss in these cases often exceeds several hundred dollars per victim. And because the transactions are nearly anonymous and irreversible, recovering the money is extremely difficult.

What Readers Can Do: Practical Steps to Stay Safe

The best defense is knowing how these scams work and what to do if you encounter one. Below are concrete steps, organized by the most common scenarios and warning signs.

Common Scenarios to Watch For
  • Tech Support Scams: You receive a pop-up or a call claiming your computer has a virus. The “technician” asks you to pay for a fix using a gift card.
  • IRS or Government Impersonation: A caller says you owe back taxes or have a warrant, and the only way to resolve it is by buying a gift card and reading them the code.
  • Romance Scams: Someone you’ve met online (but never in person) asks for gift cards to help with an emergency or to pay for travel to visit you.
  • Prize or Sweepstakes Scams: You’re told you’ve won a large prize, but first you must pay a “processing fee” with a gift card.
Red Flags
  • You are asked to pay with a gift card, especially a store-branded card (Target, Walmart, Best Buy) or a digital card (Google Play, Apple, Amazon).
  • The caller insists on staying on the phone while you go to a store to buy the card.
  • You are told to buy cards from multiple stores to avoid detection.
  • There is an extreme sense of urgency—you must act immediately or face a dire consequence.
How to Buy and Use Gift Cards Safely

Even when you are buying a gift card as a genuine gift, take these precautions to avoid tampering:

  • Inspect the packaging. Look for any signs of tampering, such as scratched-off PINs, loose stickers, or damaged seals.
  • Buy from the store counter, not the rack. Ask a store employee to retrieve a card from behind the counter if possible. Scammers sometimes record card numbers from the rack and activate them after you load money.
  • Keep your receipt. If a card is defective or lost, the receipt is the only proof of purchase.
  • Register the card online. Many major gift card issuers allow you to register the card on their website, which can help if the card is stolen later.
What to Do If You’ve Been Scammed

If you realize you have given a gift card number to a scammer, act quickly:

  1. Call the gift card issuer immediately. Many have customer service lines that can block the card or freeze the balance if you report it within hours. For example, Target, Walmart, and major card processors each have dedicated fraud hotlines.
  2. File a report with the FTC at ReportFraud.ftc.gov. Your report helps law enforcement track scam patterns.
  3. Contact your local police department and the office of your state’s attorney general. The DC Attorney General’s alert is an example of how state agencies can take action, even if recovery is not guaranteed.
  4. Warn others. If you were targeted, chances are the scammers are trying the same scheme on other people. Tell friends and family.

Sources

  • Office of the Attorney General for the District of Columbia, Consumer Fraud Alert (December 2025). “Attorney General Brian Schwalb Issues Alert Warning District Residents About Gift Card Scams.”
  • Federal Trade Commission, “How to Avoid Gift Card Scams” (ftc.gov).

Gift card scams are a common but preventable fraud. Staying informed and pausing before you act can save you money and frustration. If something feels off, it probably is—hang up, step away, and verify through an independent channel.