Holiday and Gift Card Scams

How It Works

Scammers exploit the increased financial activity that occurs during the holiday season when consumers can be distracted to carry out a range of fraudulent schemes.

Common Methods of Holiday and Gift Card Scams

• Delivery scams: Scammers may take advantage of increased package deliveries by sending fake notifications about undelivered packages to trick recipients into providing personal information or payment details.
• Gift card fraud: Scammers trick victims into paying for services or fines using gift cards, or they steal the balance from legitimate gift cards.
• Holiday shopping scams: Fake holiday sales or promotions lure consumers into making purchases from fraudulent websites, but the customer never receives their items.
• Phony charities: Fraudsters create fake charities during the holiday season to exploit people’s goodwill and collect donations that are never used for the stated cause.
• Seasonal employment scams: During the holiday season, many people seek temporary jobs in retail, delivery services, and other industries. Scammers exploit this demand by posting fake job listings. Victims are sometimes asked to provide personal information, pay upfront fees, or work without compensation.
• Travel scams: As people book holiday travel, scammers may offer fake travel deals, cheap flights, or holiday vacation packages. Victims may pay upfront, only to find the tickets or bookings do not exist.

Warning Signs

• Requests for payment via gift cards for services or fines. No legitimate business or government agency will ask for payment in this form.
• Gift cards that appear to have been tampered with, such as torn packaging or scratched-off security codes.
• Unsolicited messages offering discounted or free gift cards.
• Holiday promotions and contests asking for personal information or payments to claim a prize.
• Job listings that require upfront payments for training or supplies.
• Requests for sensitive personal information (Social Security numbers, banking details) before a formal hiring process.
• Lack of clear information about the job, the employer, or job location.
• Unsolicited offers for discounted travel or luxury accommodations.
• Requests for full payment upfront or via untraceable methods, like wire transfers.
• Unexpected emails or texts claiming delivery issues with a request for payment or sensitive information.

Ways to Avoid It

• Purchase gift cards directly: Buy gift cards from trusted retailers, either online or in-store, and avoid third-party sellers.
• Never pay a third party with gift cards: No legitimate company will ask for payments using gift cards. If someone does, it’s a scam.
• Be cautious of unsolicited offers: Ignore unsolicited emails or social media messages offering free or discounted gift cards.
• Check the gift card before purchase: Ensure the card hasn’t been tampered with before purchasing, especially the area where the code is located.
• Always book through reputable travel agencies or directly with airlines and hotels. Confirm bookings before making payments.
• Track deliveries directly through the retailer or shipping service and use secure delivery options if possible (e.g., package lockers or requiring a signature).

Ways to Report It

Fraudsters exploit the holiday shopping season by using fake promotions or stealing gift card balances.

• Report the fraud to the Federal Trade Commission (FTC)
  • Online: Visit ReportFraud.ftc.gov to report the fraud. Provide as many details as possible about the interaction.
  • Phone: Call the FTC at 1-877-FTC-HELP (1-877-382-4357) if you prefer to file your complaint over the phone.
• Report to the Internet Crime Complaint Center (IC3)
  • Online: Submit a complaint to the IC3, a division of the FBI.
  • This is especially useful for internet-related crimes.
• Contact the gift card issuer
  • Customer service: Contact the customer service department of the gift card issuer to report the fraud.
  • Provide all relevant details including the card number, purchase information, and any correspondence with the scammer.
  • Some companies may be able to freeze the remaining balance on the card if reported quickly.
• Notify your financial institutions
  • Bank/credit card: Inform your bank or credit card issuer about the fraudulent transaction.
  • Dispute any unauthorized charges and consider requesting your account be closed and a new account opened with new cards.
• Report to your local law enforcement
  • Local law enforcement: Visit or contact your local law enforcement agency to report the scam.
  • Provide all collected documentation and evidence.
• Alert the retailer or online marketplace
  • If the scam occurred through an online retailer or marketplace, report it through their customer support or fraud reporting system.

Remember: You can take effective steps to report and potentially mitigate the impact of holiday and gift card scams.