Many of us find it difficult to think of presents, especially on important occasions. Some of us choose to hand a gift card thinking it was a perfect birthday, anniversary or graduation present to the receiver who’d like to buy a product or services, making gift cards increasingly popular in today’s world.
However, the popularity of gift cards is the same reason why it is not an exemption from the interest of fraudsters and cybercriminals. Those online scammers have developed innovative ways to the growing trend that even gift cards are not exempted.
Online scammers favored gift cards scams because it is easy to buy and hard to trace as well. Plus, it is easily redeemable and can be used for purchasing online products and bitcoin.
This article will tackle why cybercriminals are obsessed with gift cards.
Fraudsters Prefer Gift Cards
Fraudsters prefer gift cards because it is easy to find buyers and lesser protection to the consumers compared to the usual payment options.
Gift card scams typically happen with a phone call from someone imitating a famous business or government authorities. The scammers will ask the users to pay by placing money on gift cards such as iTunes card, Google Play, Target and eBay that eventually give them numbers on the back of the card.
Some people experienced being scammed by someone posing as Apple or Amazon, telling them to send pictures of the numbers, also known as “security code” on gift cards to rectify a suspected security problem with their account.
Several reports that there are scammers claiming to be part of the Social Security Administration, claiming that the user’s bank account will be frozen for investigation and convince them to purchase gift cards to secure their access to their account and money.
And there are also certain reports that the scammer impersonates the utility company, telling the user that the service will be cut off if they don’t pay it quickly or purchase gift cards to fix it.
Scammers desire gift cards as payments, since it is equivalent to cash wherein they are not tied to an individual or entity, unlike in credit or debit cards.
How Does It Work?
Cybercriminal, online fraudsters, scammers, or whatever you call it, ask for the gift cards because it is one of the fastest and easiest ways to steal money.
Online scammers are required to have a legitimate financial account for you to pay before receiving wired money. Luckily, it is difficult to set up an account without inputting your personal information.
But once a scammer receives a gift card, they can spend it on products or launder the gift cards for real money. Gift cards can be sold by scammers and price it with a lower value. After all, they did not buy it, instead they earned through it. Without a doubt, many online shoppers will flock and purchase the gift cards at lower prices.
Basically, those scammers usually call, text or email the victims saying they are in some financial trouble or problems in utility bills, they will demand to buy a gift card and make them provide the number and PIN in which scammers use it to buy or steal the money in your account.
Another tactic of cyber scammers is insisting that you have won a prize. The victim will be informed by these fraudsters that they have won big but need to pay a paltry amount to claim the prize.
Ways to Avoid Gift Card Scams
Many people are being scammed through gift card schemes ultimately because it is always terrifying to hear that you have unpaid bills or have trouble in your bank accounts.
The safest way to avoid any gift card scams is to take note that no legal business or government authority will require and demand payment through gift cards.
In addition, remember to buy, receive, and send gift cards from legitimate resources only. Always inspect and double check the gift card, including the terms and condition and expiration date if possible before purchasing. Then, keep the gift card receipt along with its card number and PIN. Treat gift cards like cash and use it as soon as possible.
Wrap Up
If an unknown number is calling you and claims to be part of a business or organization and demanding payments via gift cards, hang up your phone and don’t waste time paying them. These scammers even pose a family member or friend to trick you and start sending over a gift card.
The reason hackers are asking for a gift card to scam is does not leave a trail to trace where the money is going. Note that the bad guys are constantly innovating new ways to monetize stolen data. Always be vigilant and check information before sharing it with anyone.
