Officials warn of gift card scams that cost Americans nearly $217 million last year
OHIO — Finding the right gift can be an art form to some people by putting hours into something that they feel their loved one would enjoy.
But sometimes, there’s a simpler option to allow friends and family to pick what they want for a present: gift cards.
The National Retail Foundation’s 2024 Holiday Consumer Survey revealed around 44% of consumers plan to give a gift card as a present this year. It was the second most popular category behind clothing.
Gift cards can be handy and useful, however, there are scams that can come with them, the Ohio Department of Commerce Division of Financial Institutions (DFI) warned.
ast year, Americans lost nearly $217 million in gift card scams, according to the Federal Trade Commission. These scammers tend to pose as legitimate businesses or government agencies who pressure people to make payments through gift cards, the Ohio Department of Commerce said.
“Unfortunately, there are bad actors who attempt to take advantage of people during the holiday season,” said DFI Superintendent Kevin Allard. “Some of these scams can be difficult to detect, which is why it’s important to remain aware and alert to ensure you keep yourself financially protected.”
The department said there are ways to identify gift card scams to prevent money loss:
- Only purchase gift cards from reputable sources — grocery stores, drug stores, restaurants or more
- Inspect gift card packaging to ensure it hasn’t been tampered with, bent or altered in any way
- Don’t purchase gift cards from third-party sources, like online auctions
- Maintain copies of receipts in case a scam occurs
There’s also a handful of common scams involving gift cards, the department said, including:
- People posing as the government and saying you owe taxes or fines
- Tech support claiming you owe a payment for fixing a non-existent issue with your computer or phone
- Fake online relationships that result in pressure to withdraw money
- Fake prize claims
The Ohio Department of Commerce reminds Ohioans that businesses or government agencies won’t demand payment through gift cards.
