Gift Card Scams Are Still Thriving: What the Latest Consumer Alert Means for You

If you’ve ever been asked to buy a gift card to pay a bill, cover a debt, or secure a prize, you’ve likely encountered one of the most persistent frauds in modern consumer life. Gift card scams continue to drain bank accounts across the country, and authorities are still urging the public to stay alert.

In December 2025, District of Columbia Attorney General Brian Schwalb issued a fresh warning about these schemes. His office highlighted how scammers convince people to purchase gift cards—often from Amazon, Google Play, or iTunes—and then share the codes on the back. Once the fraudster has those numbers, the money is gone and nearly impossible to recover.

What Happened

The alert from Attorney General Schwalb’s office wasn’t prompted by a single new variation of the scam, but by the continued prevalence of the problem. According to the Federal Trade Commission (FTC), gift card fraud has cost consumers hundreds of millions of dollars in recent years. The DC alert specifically reminded residents that no legitimate business or government agency will ever demand payment by gift card.

The message echoed similar warnings from the FTC, the Better Business Bureau, and other state attorneys general. The alert also pointed out that scammers often target older adults, immigrants, and people who may not be familiar with common fraud tactics. They create a sense of urgency—claiming a utility is about to be shut off, or that a loved one is in legal trouble—and demand payment in gift cards.

Why It Matters

Gift card scams are effective because they exploit trust and confusion. Many people assume gift cards are safe, and the request to “verify” a card number seems harmless. But once the code is shared, the scammer can drain the balance within minutes. Unlike credit cards, gift cards have very limited fraud protection. The money is essentially gone.

These scams take many forms. You might get a call from someone claiming to be from tech support, saying your computer has a virus and you need to pay for a fix with gift cards. Or a fake romantic interest might ask for cards to “prove” your love. Even fake prize notifications often ask winners to pay taxes with gift cards. In every case, the script is the same: buy the cards, read the numbers over the phone, and keep it secret.

The DC alert is a timely reminder that despite public awareness campaigns, the scam still works. According to a 2024 FTC data spotlight, consumers reported losing more than $535 million to gift card scams in the past five years. The median loss per victim is around $600, but many people lose thousands.

What Readers Can Do

The most important step is simply knowing the red flags. If anyone—whether by phone, email, text, or in person—asks you to pay with a gift card, stop. That is almost certainly a scam. Legitimate companies do not accept gift cards as payment for services, taxes, or debts.

Here are specific steps to protect yourself and others:

  • Buy gift cards only from reputable retailers. Stick to storefronts or official websites. Avoid third-party marketplaces where cards may already be tampered with.
  • Keep the receipt. It is your only proof of purchase if you need to report fraud.
  • Never share the code on the back. Treat that number like cash. Even a photograph of the card can be used by scammers.
  • If you feel pressured, hang up or walk away. Scammers rely on urgency to override your better judgment.
  • Help older relatives stay informed. Many victims are seniors who may not hear about these warnings.

If you suspect you’ve been scammed, act quickly. Contact the gift card issuer immediately. Some companies—like Amazon, Apple, and others—have fraud reporting hotlines. File a complaint with the FTC at ReportFraud.ftc.gov. You can also contact your local police and your state attorney general’s office. In DC, the Office of the Attorney General accepts consumer complaints online.

Even if you cannot get your money back, reporting the scam helps authorities track patterns and warn others.

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, “Gift Card Scams,” updated 2025.
  • FTC Data Spotlight, “Gift card scams cost consumers hundreds of millions,” 2024.