Frauds and scams are unfortunate occurrences that have dominated the financial sector. The advent of the internet and the subsequent migration of transactions online has exacerbated the ongoing trend. The internet has itself provided tools and discreet avenues for the execution of these heinous acts.

As UK Finance pointed out, the majority of fraud originates outside the banking sector and one of the most prevalent is Gift Card fraud and scams.

Thus in this conversion, we will be discussing:

What are Gift card scams?

Why do scammers prefer Gift cards?

How to prevent getting scammed of a Gift card

Also

Hopefully, by the end of this article, you should have been familiar with the tricks and formats of a Gift card scam; understand why scammers prefer a Gift card; as well as ways to prevent falling victim to these Gift card scams.

What are Gift Card Scams?

Gift Card scams refer to the use of blackmail, force, pretense, and various illegal methods by scammers and fraudsters to obtain gift card details from unsuspecting people.

These scams come in various tricks and formats. One of the most prevalent methods of operation is to swindle people into buying these Gift cards and sending the information on the back of these cards to the scammers.

ABCnews reports that more than $3.4 Billion dollars were ripped off people in such “Elder scams” targeting elderly ones from 60 years and above.

Why do these scammers prefer Gift cards?

Of the numerous reasons why scammers prefer Gift cards to pull off their heists, the following appear the most feasible:

1. Gift cards are easy to purchase

2. Gift Cards can serve as an alternative to cash

3. Gift cards are almost impossible to trace

Gift Cards are easy to purchase

Gift cards can be purchased in walk-in- stores located in almost every neighborhood. They are also available for purchase in online stores. This takes very little time. Just money over the counter and they are bought. In prevalent fraud formats such as romance scams where people’s trust and confidence are secured through relationships, scammers often urge their supposed lovers to buy them Gift cards they could exchange as money to maybe make their hair, as transport fare, or whatever line suiting the ploy at that moment.

Gift cards are an alternative to cash

In many places and situations, Gift cards are an alternative to cash as they can be exchanged for goods and services. Gift cards are accepted as a legal exchange tender in stores, franchise or related chains of businesses businesses. This feature makes them attractive valuables to scammers who can quickly exchange these gift cards on platforms for money or make online purchases with them.

Gift cards are almost impossible to trace or refund

Many companies have a customer complaints policy for issues such as Gift card scams. As lovely as the idea of tracing a Gift card sounds, it is an almost impossible thing to pull off. However, as Nortion word it, Gift cards are the ideal [scam] accomplice. These cards are virtually untraceable, granting the fraudster the ideal superpower they crave the most; anonymity.

Also, the idea of getting a Gift card refunded is a dreamland wish. Granting such a wish is very rare and economically illogical for a retailer or business. Such money when gone, like the wind might never return.

Preventing Gift Card scams

Gift card scams are becoming a menace, Beyond the large figures and numbers being projected are lives ruined, hearts broken, and relationships shattered.

Preventing these swindles will to a significant extent stem these negative occurrences.

Forbes lists 4 ways you can avoid falling into Gift card scams:

1. Take a step backward whenever you sense urgency and desperation: Whenever your love interest, boss, or supposed tech support says you have to send them money or something terrible is going to either happen to you, them, or someone around, that is a red flag you should not take for granted. In situations like that, you may want to take a step backward and call someone around.

2. Pause when the demand is too specific:

When the person at the other end of the line is specific about the particular Gift card they want, going forward state if you should get them a Target, Itunes, or Walmart gift card. They might go a step further by engaging you in a conversation while that happens, talking you through as you make the gift card purchase. When such happens, you might want to hang up and have a rethink.

3. Slow down when you are asked to send the Gift card number and pin:

When they ask that you send the details of the Gift card, specifically the number and pin of the Gift card, you ought to slow down. Some alternatively seek you send them back and front Gift card pictures. Even if the Gift card is physically going to be there with you, you may need to halt.

4. Hesitate when there is an offer too good to be true:

When NASA suddenly offers you a job, you win the latest iPhone or you win an American Visa lottery without vying or applying, you may need to hesitate before you pay the entry fee or pay the predetermined levy in the form of a Gift card. Even in cases where a merited offer comes, hesitate, and carefully scrutinize the source (I hear they now clone URLs and names now) to ensure you are on the right one.

ALSO

If you intend to sell Gift cards, ensure you sell only to trusted and approved vendors. Vendors such as Kaapo have security measures to ensure your Gift card does not get swindled or ripped of these cards. Do not sell your Gift cards to roadside vendorsor whatsapp vendors, such have been often been accused of stealing Gift cards and swindling people.

CONCLUSION

Gift card scams are here to stay unfortunately, the wide acceptability, its purchase convenience as well as well as untraceability will keep making it attractive for swindlers, scammers and fraudsters. They would certainly seek efficient ways and means of getting people to send them Gift cards. It is up to you to be on the look out for such, be increasingly shrewd and careful when dealing with people.