Gift Card Scams: What the Latest DC Attorney General Alert Means for You

Gift cards are a convenient way to give someone a present. But scammers have turned them into a favorite payment method for fraud. In December 2025, District of Columbia Attorney General Brian Schwalb issued an alert warning residents about the ongoing threat of gift card scams. The alert serves as a timely reminder that this type of fraud persists year after year, costing Americans hundreds of millions of dollars.

If you’ve ever received an unexpected call, text, or email demanding payment by gift card, you have encountered this scam. Knowing how it works and what to do if you are targeted can help you protect your money.

What Happened: AG Schwalb’s Warning

Attorney General Schwalb’s alert was part of a broader consumer protection effort. It highlighted that scammers continue to impersonate government agencies, tech support companies, and even friends or family members in distress. The goal is always the same: pressure you into buying gift cards—often from major retailers like Target, Walmart, or Google Play—and then reading the card numbers and PINs over the phone or sending a photo of them.

The DC Office of the Attorney General (OAG) noted that no legitimate business or government agency will ever demand payment via gift card. Yet many people still fall for these tricks because the scammers are skilled at creating urgency and fear.

Why It Matters: The Scale of the Problem

Gift card scams are not rare. According to the Federal Trade Commission (FTC), consumers reported losing over $200 million to gift card fraud in 2023 alone. Those figures likely understate the true damage because many incidents go unreported.

The scams can target anyone, but older adults and people who are less familiar with digital payment methods are especially vulnerable. Fraudsters often pose as officials from the IRS, Social Security Administration, or a utility company, threatening arrest or service cutoff unless the victim buys gift cards immediately. In other variations, a scammer pretends to be a romantic interest or a grandparent in trouble, asking for gift cards to help with an emergency.

The problem grows during holiday seasons, when people are already buying gift cards and scammers try to blend in with legitimate transactions.

What Readers Can Do: Spot and Stop Gift Card Scams

Know the red flags. If someone you don’t know asks you to pay with a gift card, it is almost always a scam. Key warning signs include:

  • A demand for payment by buying gift cards and sharing the codes.
  • Threats of arrest, lawsuit, or immediate disconnection if you don’t comply.
  • Instructions to stay on the phone and not tell anyone.
  • Requests for secrecy, especially from someone claiming to be from a government office.

Verify independently. If you get a call from someone who says they are from a company or agency, hang up and call the official number listed on their website or on a recent bill. Do not use any phone number the caller gives you.

Treat gift cards like cash. Only buy them as gifts for people you know. Never give a gift card number or PIN to someone you have not met in person. Once a scammer has those numbers, they can drain the balance quickly. Gift cards are not reversible like credit cards.

Be suspicious of urgent demands. Scammers create pressure so you won’t stop to think. Take a moment. Legitimate businesses will not ask you to wire money or buy gift cards to resolve a problem.

What to Do If You’ve Been Scammed

If you realize you have given gift card numbers to a fraudster, act fast. The chances of recovering your money drop quickly.

  1. Contact the gift card issuer immediately. Most major gift card companies have fraud reporting hotlines. Provide the card number and transaction details. In some cases, they may be able to freeze the funds if you act within hours.
  2. Report the scam to the FTC. File a complaint at ReportFraud.ftc.gov. The FTC shares data with law enforcement.
  3. Notify your local police. In the District of Columbia, you can also contact the DC OAG’s Consumer Protection Hotline at (202) 442-9828 or file a complaint online at oag.dc.gov.
  4. Monitor your financial accounts. If you shared any other personal information, such as your Social Security number or bank account details, take steps to protect your identity, such as placing a fraud alert on your credit reports.

Stay Informed and Share This Advice

Gift card scammers are persistent, but you can cut off their main tactic: treating gift cards as a legitimate form of payment for debts, fines, or prizes. If a stranger asks you to buy gift cards for any reason other than giving a gift, assume it is a fraud.

Attorney General Schwalb’s alert is a useful reminder that these scams are not going away. Share this information with friends and family who might not follow consumer protection news. A little caution can save a lot of money.

Sources: DC Office of the Attorney General (oag.dc.gov); Federal Trade Commission (ftc.gov).