Gift Card Scams: How to Spot Them and What to Do

If someone you don’t know calls, emails, or texts you and demands payment with a gift card, it is a scam. No legitimate company, government agency, or utility will ever ask you to buy a gift card and read them the numbers on the back.

This message is the core of a consumer alert issued by Attorney General Brian Schwalb in December 2025, warning District residents about a surge in gift card scams. The alert is straightforward, but the scams themselves can be convincing. Here is what you need to know to recognize them, protect your money, and take action if you or someone you know has been targeted.

What happened

On December 15, 2025, the Office of the Attorney General for the District of Columbia published an alert reminding consumers that gift cards are a common tool for scammers because they are nearly impossible to trace once the codes are used. The alert notes that scammers often pretend to be from government agencies (such as the Social Security Administration or the IRS), tech support companies, utility providers, or even a friend or family member in distress. They create a sense of urgency and pressure the victim to buy gift cards—usually from major retailers like Target, Walmart, or Apple—and then share the card numbers and PINs.

The Attorney General’s office urged residents to hang up on any caller who demands payment in gift cards and to report the incident immediately.

Why it matters

Gift card scams are not new, but they remain one of the most reported types of fraud in the United States. According to the Federal Trade Commission (FTC), consumers lost more than $200 million to gift card scams in 2023 alone, and the numbers have not declined. These scams spike during the holiday season, when people are already buying gift cards and may be less suspicious.

The reason gift cards are so attractive to scammers is simple: once a card is purchased and the numbers are given away, the money is gone. Unlike credit card transactions, there is no chargeback process. The scammers can redeem the value within minutes, often by reselling the cards online.

Scammers rely on fear and confusion. They may spoof a phone number to make it look like a government agency is calling, or they might use personal information they found online to make the threat sound real. They will tell you that you owe taxes, that your computer has a virus, that your loved one is in jail, or that your utility will be shut off—and that the only way to resolve the problem is by buying gift cards and sharing the codes.

What readers can do

The good news is that you can protect yourself by remembering a few simple rules.

Three red flags to watch for:

  • The caller asks you to buy gift cards (or cryptocurrency, or wire money) to pay a debt or fee.
  • The caller demands that you stay on the phone while you go to a store and buy the cards.
  • The caller tells you not to tell anyone—including store employees or family members—what you are doing.

What to do if you receive such a request:

  • Hang up. Do not engage.
  • Do not buy the gift cards. If you are already at a store with gift cards in hand, walk away.
  • If you suspect the call might be legitimate, independently look up the official phone number of the agency or company and call them directly. Do not use any number the caller gives you.
  • Talk to a trusted friend or family member before taking any action.

If you have already given gift card numbers to a scammer:

  • Contact the gift card issuer immediately. For many major brands, there is a customer service number on the back of the card. Some issuers may be able to freeze the card if you act fast.
  • Report the scam to the Federal Trade Commission at ReportFraud.ftc.gov.
  • File a report with your local police department.
  • Notify the Office of the Attorney General for the District of Columbia at oag.dc.gov/consumer if you live in the District.

If a store employee questions you while you are buying a large number of gift cards, pause and listen. Many retailers have trained their staff to spot potential scams. They are on your side.

Sources

This article is based on a consumer alert issued by D.C. Attorney General Brian Schwalb in December 2025. The alert itself is no longer available online as a standalone page, but similar warnings can be found on the OAG DC website. For the most current information, check official government sources.