How to Spot and Avoid Gift Card Scams: A Consumer Alert

Gift cards are convenient gifts, but they have also become a favorite tool for scammers. In December 2025, Attorney General Brian Schwalb issued an alert warning District residents about a surge in gift card scams targeting consumers across Washington, D.C. His office joined a growing chorus of law enforcement agencies urging people to recognize the warning signs before they lose money.

Here is what the alert says, why it matters, and what you can do to protect yourself.

What Happened

The Office of the Attorney General for the District of Columbia published a consumer fraud alert after receiving reports of scammers impersonating government officials, utility companies, and even romantic partners to trick people into buying gift cards and reading off the numbers and PINs.

According to the alert, fraudsters often create a sense of urgency. They may claim your Social Security number is about to be suspended, that your electricity will be shut off, or that you owe back taxes. They instruct you to buy gift cards—typically Google Play, Apple, or Amazon cards—and then demand the codes on the back. By the time you realize what happened, the money is gone.

Nationally, the Federal Trade Commission reported that gift card scams cost consumers more than $200 million in 2024, a figure that likely undercounts the true toll because many incidents go unreported.

Why It Matters

Gift card scams work because the transactions are nearly impossible to reverse. Unlike credit card payments, gift card purchases are treated like cash. Once the scammer has the code, they can drain the balance within minutes, often by reselling the cards on third-party markets or using them to buy goods.

Scammers target gift cards for three reasons:

  • Anonymity – They can remain hidden behind fake identities and disposable phone numbers.
  • Irreversibility – Banks and card issuers rarely refund money that was voluntarily given away.
  • Speed – The entire scam can unfold in under an hour.

The Attorney General’s alert specifically highlights that no legitimate government agency or company will ever demand payment with a gift card. The IRS, Social Security Administration, utility providers, and tech support companies all have established billing processes that never involve purchasing gift cards.

Yet every year, thousands of people fall for these tricks. Older adults are disproportionately targeted, but the scams affect people of all ages.

What Readers Can Do

Take these steps to recognize and stop gift card scams before they cost you.

Know the red flags. If someone you have never met in person asks you to buy a gift card and share the code, it is almost certainly a scam. Be suspicious of calls, emails, or texts that claim you owe money and demand immediate payment. Scammers often use threats, pressure, or too-good-to-be-true offers (like prize winnings that require a “fee” in gift cards).

Verify independently. Do not call the number the caller gives you. Instead, look up the official customer service number for the company or agency they claim to represent. If the request is real, the official line will confirm it. It will also confirm that they never accept gift cards as payment.

Never share the code. Treat the numbers on the back of a gift card like cash. Only give them when you are physically at a store register, buying something with the card. If someone pressures you to email, text, or read those numbers aloud, end the conversation.

If you have already given out a gift card code, act fast. Call the card issuer immediately. Google Play, Apple, Amazon, and major retailers have reporting hotlines for gift card scams. They may be able to freeze the balance if you catch it quickly enough. Then file a complaint with the Federal Trade Commission at ReportFraud.ftc.gov and with your state attorney general’s office. In D.C., you can contact the Office of the Attorney General’s Consumer Protection Division.

Protect friends and family. Share this information with older relatives, neighbors, or anyone who might not follow consumer alerts. A short conversation can prevent a costly mistake.

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, “New Data Shows FTC Received 2.6 Million Fraud Reports from Consumers in 2024,” February 2025.