Looking for a New Year’s resolution? Here’s one for you: Keep your hard-earned money safe from scammers by spotting and avoiding gift card scams. Then help others spot and avoid them, too. Scammers want you to pay with gift cards because they’re like cash: once you use a gift card, the money on it is gone. But what do gift card scams look like?

As we start a new year, many of us are looking for ways to improve our lives and make better choices. One ordinary New Year resolves to save more money. But what if I told you there was an easy way to help you save your hard-earned cash? It’s by being aware of gift card scams and knowing how to avoid them.

Gift card scams are becoming increasingly common as scammers realize that many people are unaware of the dangers. These scams can take many forms, but they all have one thing in common: the scammer tries to get you to pay with a gift card. Why? Because once you use a gift card, the money on it is gone – making it the perfect payment method for scammers.

But learning to spot and avoid gift card scams is easy and can help you keep your hard-earned money safe this year. So read on to learn more about gift card scams and how you can protect yourself (and your wallet) from them in 2022!

The scammer contacts you out of the blue, often by email, text message, or social media

A scammer tries to trick you out of your money by leveraging malicious technology or targeting vulnerable people. Unfortunately, scamming has been around for quite some time and continues to evolve as technology advances. You may suddenly receive emails, text messages, or social media messages from a scammer, often out of the blue with offers of easy money or empty promises of great rewards. Many scammers will try to create a sense of urgency and desperation, making it hard for you to think logically. It’s important to recognize when someone is trying to deceive you and remember that if something sounds too good to be true, it probably is! Be significantly practicing caution when it comes to any unusual requests or offers received via email, text message, or social media – never provides personal information or send money without proper research. Knowledge is power against scammers, so take the time to educate yourself about their tactics and stay alert for signs of a possible scam. If in doubt at any point in time regarding any online activity related to a suspicious individual, then seek advice from the relevant authorities immediately.

They claim to be from a well-known company or someone you trust

Nothing can be more maddening than getting a call from someone who claims to represent a company or person you trust. Unfortunately, these types of deceptive practices are becoming increasingly common. These individuals, who often use high-pressure tactics and false information to mislead the public, may appear very convincing on the surface. Still, they have one goal: to deceive people so they can steal their money and personal information. To verify whether the individual or organization is legitimate before providing any financial or personal information, it’s essential to conduct your research. Check online reviews and, if possible, reach out directly to the company or person they represent to ensure that it is genuine and trustworthy. If something doesn’t seem right—such as their tone of voice or choice of words—it may be best to hang up. After all, better safe than sorry!

They say you’ve won a prize or are owed money.

The letters arrive, out of the blue, heralding a massive windfall that you were seemingly unaware you were due. But how reliable are these offers? The truth is, they could be either legit or fraudulent—or somewhere in between. As with almost any attempted scam, the key to avoiding being taken advantage of is to do your research and take nothing at face value. If someone says, you’ve won a prize or are owed money, find out who they are and how they got hold of your information. Check for red flags, such as if they initially ask for personal details like bank account numbers or request fees for getting your prize. Legitimate organizations should have comprehensive records of why you’re getting the payment or reward. Don’t let eagerness override your common sense; be sure a company has checked its sources thoroughly before sending you anything. Keeping a healthy dose of skepticism is invaluable for these types of Gift Card Scams offers and will help protect you from potential scams in the long run. Thus, if someone contacts you are claiming that you’ve won a prize or are owed money, never assume it’s valid until all necessary investigation has been completed. Trust but verify!

They ask you to pay with a gift card.

When paying for a purchase, most people assume their credit card or cash are their only options. That said, if someone asks you to pay with a gift card – especially an iTunes or Amazon one – it’s important to question that request. Scammers often exploit unsuspecting victims by convincing them to buy and send a gift card as payment, making it easier for them to take advantage of the victim and steal money from them. Generally speaking, no legitimate business will ever ask for payment through a gift card since they can more easily secure their payments via other means. If you’re asked to pay with a gift card, take a step back and think twice before taking action. Consider contacting the company directly, verifying their requests, and investigating any potential fraud alarm bells that go off in your mind. It’s also recommended that you keep an eye on your credit reports and bank accounts afterward in case of any suspicious activity. All in all, being vigilant is critical whenever someone asks you to make an unusual payment method like a gift card – they might be trying to scam you out of your hard-earned money!

You might be asked to provide the codes on the back of the card so they can “verify” your payment.

Beware of scammers impersonating businesses, like online merchants or banks. Scammers often target unsuspecting shoppers in several ways, but one of their most common tactics is to contact you and ask for your payment card’s security codes. They may phish for this information by saying they need it to “verify” your payment or “check” that the card is authentic. Honest businesses will not ask for these codes; if anyone does, hanging up the call or ignoring the email request altogether is essential. It’s also important to know what these codes are in the first place: they are the three- or four-digit numbers printed on the back of the card and used by retailers as an extra layer of security during checkout. If you are still worried that someone might be trying to scam you out of this information, contact your payment card provider directly to verify whether or not their request is legitimate. Doing so can protect you from identity theft and other scams related to stolen credit card numbers.

Once they have the codes, they spend the money before you realize you’ve been scammed.

Scammers are always trying to find new ways to suck money out of people, including online purchases. While many legitimate websites people use for everyday shopping, a few unscrupulous ones exist. One common scam is when scammers obtain credit card codes and spend the money before they even realize it has been taken. This scammer spends the funds quickly so they can move on to the next unsuspecting victim. They are often adept at hiding the charges they have made in places where they may be difficult to detect or appear legitimate. The best way to avoid falling prey to such scams is to be vigilant about checking your statements every month and report any suspicious activity immediately. Be aware, too, that criminals target those who provide personal information or financial details on unsecured sites or via unsolicited emails. Keeping your accounts secure using strong and unique passwords can also provide a layer of protection from this fraudster. With care and vigilance, we can all protect ourselves from becoming another statistic in this insidious form of theft.

Gift card scams are becoming increasingly common, so be on the lookout for any messages or calls that seem too good to be true. If you’re unsure whether a message is legitimate, contact the company directly to ask about the contest or prize. Never give out your gift card codes to someone you don’t know and trust. Unfortunately, there’s no way to get your money back if you fall for this scam, but by being aware of it, you can help protect yourself and others from becoming victims. Have you ever received a message like this?