Why gift card payment means scam

Treat any demand for payment in gift cards as proof of a scam, and hang up.

You will be able to explain why real businesses and governments never ask for gift cards, and what to do if someone already paid.

Why it matters

Once a scammer has the number and PIN on the back of a gift card, they can spend the money quickly, and it is hard to get back. The FTC says no real business or government agency will ever tell you to buy a gift card to pay them. From 2018 to September 2021, about one in four people who reported losing money to fraud to the FTC said they paid with gift cards or reload cards.

How to do it

1. Learn the rule: only scammers tell you to pay with a gift card. No real business or government agency will ask you to.
2. Know the common stories: a 'government agency' says you owe taxes or fines, such as callers posing as the IRS, Social Security, or the Canada Revenue Agency; 'tech support' says your computer is infected; a friend or relative has an emergency; you won a prize but must pay fees; your power will be cut off today; an online love interest needs money; or someone overpays you with a check and asks for the extra back.
3. Notice the pressure: they want you to act now, stay on the phone, keep it secret, or go to a certain store.
4. Hang up or stop replying. Never read gift card numbers aloud or send photos of the back of a card.
5. Check the story yourself using contact details you find on your own: your bill, the agency's official website, or a family member's known number.
6. If you already paid, contact the company that issued the gift card right away, even if time has passed. Tell them it was used in a scam and ask for your money back. Keep the card and the receipt.
7. Report it: in the US at ReportFraud.ftc.gov; in Canada to the Canadian Anti-Fraud Centre and your local police.
8. Share this rule with older relatives and teenagers in your family.

Common mistakes

• Believing the caller because they know your name or send an official-looking logo or letter.
• Thinking it must be safe because a real store sells the cards.
• Throwing away the card and receipt after a scam, which makes a refund less likely.

Sources

1. FTC - Avoiding and reporting gift card scams
2. FTC Data Spotlight - Scammers prefer gift cards
3. Canadian Anti-Fraud Centre - Extortion scams

Sources and numbers last checked October 22, 2026. How we check

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← 6.1 previous lesson: Work out a tip in your head · 6.3 → next lesson: Wrong number text scam, and how to spot other scam texts

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6Information16 lessons

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3. 6.3Wrong number text scam, and how to spot other scam texts
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5. 6.5Working out percent change
6. 6.6Spot a phishing message
7. 6.7How to block spam calls on iPhone and Android
8. 6.8Turn on two-factor login for email
9. 6.9How to check if your phone is hacked
10. 6.10Trace a claim before you share it
11. 6.11Check an AI chatbot's answer
12. 6.12Spot a bar chart that exaggerates
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16. 6.16Relative risk vs absolute risk

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