Scams and fraud

Gift cards are for gifts, not payments

By Keith Ables · Published October 2026

A caller says you owe the IRS, your grandson needs bail, or your computer has a virus, and the fix is to buy gift cards and read them the numbers on the back. Every one of those stories ends the same way: the money is gone in minutes, and it's very hard to get back.

The one rule

The stories they tell

• "This is the IRS (or Social Security)." You owe back taxes or fines and will be arrested unless you pay today.
• "Grandma, it's me." A loved one is in trouble and begs you to keep it secret. The voice may even be cloned to sound real.
• "Your computer is infected." A fake technician will fix it for a fee.
• "Your power will be shut off in an hour." A fake utility demands immediate payment.
• "You've won a prize." You just need to pay the fees first.
• An online sweetheart who needs help with a sudden expense.

Warning signs while it's happening

• They tell you exactly which card to buy and which store to go to, sometimes several stores.
• They stay on the phone with you while you shop.
• They tell you not to tell the cashier what the cards are for.
• They ask for a photo of the back of the card, or for the card number and PIN.

Store clerks are trained to spot this. If a cashier asks what the cards are for, it's worth pausing and telling them the truth.

If you already paid

1. Call the gift card company right away (the number is on the back of the card or on the company's website), no matter how much time has passed. Tell them the card was used in a scam and ask for your money back. Some companies can freeze the funds if you act fast.
2. Keep the card and your receipt. You'll need both.
3. Report it at ReportFraud.ftc.gov.

Be careful of anyone who calls later offering to "recover" your money for a fee. That's the same scammer, or a new one.

Source: FTC: Avoiding and reporting gift card scams, which also lists phone numbers for the major gift card companies.