Gift cards may be a popular and convenient way to give gifts, but they have also become a target for fraudsters. To help you enjoy the benefits of gift cards without falling victim to scams, here are some essential tips to help you dodge gift card fraud:

1. Purchase from Trusted Sources

   Always buy gift cards directly from reputable retailers or the official websites of companies issuing the cards. Avoid purchasing gift cards from online auction sites or third-party sellers, as these can often be a source of fraudulent cards.

2. Inspect the Card Before Purchase

   Before buying a gift card, inspect it carefully. Look for any signs of tampering, such as scratched-off PINs or damaged packaging. If anything seems suspicious, choose a different card and report the issue to a store employee or manager.

3. Keep Your Receipt

   Always keep the receipt after purchasing a gift card. Retaining the receipt could be helpful if you need to report any issues or discrepancies with the card.

4. Be Wary of Scams

   Fraudsters often use gift cards as a method of payment in various scams. If someone asks you to pay for goods or services with a gift card, that’s a red flag. If someone claims to be from a government agency, tech support or utility company and requests the use of a gift card in a transaction, it’s a bigger red flag.

5. Use the Card Promptly

   Try to use the gift card as soon as is practical. The longer you hang onto it, the greater the risk of it being lost, stolen or compromised. Check the balance regularly and keep an eye out for any unusual change in the balance.

6. Report Suspicious Activity

   Report suspicious activity to the gift card company. Contact the gift card company directly and be prepared to share proof of purchase or the numbers on the back of the card to verify your situation. If the money was frozen or not yet accessed by the scammer, they might be able to give you your money back. Some gift card companies offer protections that keep you safe from unauthorized transactions.

By following these helpful tips, you can enjoy the convenience of gift cards while protecting yourself against potential fraud.

For more resources and tips about avoiding or dealing with fraud and scams, visit the Cadence Bank Fraud and Security Center.

Sources:

https://consumer.ftc.gov/consumer-alerts/2024/10/only-scammers-tell-you-buy-gift-card-pay-them

https://consumer.ftc.gov/articles/avoiding-and-reporting-gift-card-scams

https://www.cnbc.com/select/gift-card-scam-money-back/

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.