Beware of gift card fraud. NJ Consumer Affairs issues alert.

Kim Strong, Asbury Park Press
·2 min read

Gift card fraud is on the rise.

From January through September 2021, the Federal Trade Commission (FTC) received more than 39,000 reports of gift card fraud, costing consumers as much as $148 million. It's so prevalent that the New Jersey Division of Consumer Affairs just issued a consumer alert after establishing new guidelines for the detection and prevention of this kind of fraud.

Gift cards are often at the center of fraud schemes as the most commonly reported method of payment, according to the FTC.

Use great caution when anyone calls, emails or texts requesting gift card information.
Use great caution when anyone calls, emails or texts requesting gift card information.

What is gift card fraud?

Scammers contact consumers via text, email or phone, urgently demanding payment in the form of gift cards. Hiding their true identity, they use fake caller ID and email addresses.

What do they do?

  • Ask for gift cards to be sent for payment.

  • Ask for information from the gift card, which allows the impersonator to use the card without possessing it.

According to NJ Consumer Affairs, "No legitimate business or government agency will ever ask for payment exclusively in the form of gift cards."

Who would a scammer impersonate?

  • A government agency, like the Internal Revenue Service, claiming you'll be arrested if you don't make the payment.

  • A utility company, threatening service will be cut off if payment isn't offered.

  • An employer, asking via email for gift cards to be purchased and photos sent of the cards' backs.

  • A romantic interest, asking for financial help with an emergency.

What should you do if gift cards are requested?

  • Do not provide gift card information to pay bills or fees.

  • If a family member or friend reaches out with an urgent need, call the person directly to confirm they need help. Scammers use fake caller IDs.

  • Do not give an unexpected caller remote access to a computer.

  • Don't give out personal or credit card details to callers in exchange for a gift card.

For more information about gift card fraud, the Division of Consumer Affairs has a two-page bulletin. If you have been the victim of fraud, report it to: The Federal Trade Commission, the Federal Bureau of Investigation’s Internet Crime Complaint Center, the New Jersey Division of Consumer Affairs, and local law enforcement.

This article originally appeared on Asbury Park Press: Beware of gift card fraud, says Federal Trade Commission and NJ