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FTC: More than $74 million lost in gift card schemes

The San Marcos Police Department is reminding consumers that gift cards are not meant for payments.
Credit: Getty Images/iStockphoto

SAN MARCOS, Texas — The San Marcos Police Department is warning consumers to be aware of gift card schemes ahead of the holiday season. 

According to the Federal Trade Commission (FTC), more than $74 million has been lost in schemes involving gift cards. 

The cards are not meant for payments, and if someone is asking you to put money on a gift card for payment, then it's likely a scheme, a release from the San Marcos PD reads. 

Examples of these gift card schemes include: 

  • "Internal Revenue Service" back taxes
  • Requests for funds to "grandchildren" who claim they've been in an accident
  • Promising "tech support" for fake computer problems
  • "Social Security" payments to remedy falsified identity-theft

Some of the tips to avoid gift card schemes include:

• Use gift cards only as gifts for people you know — and never for payments
• Legitimate businesses and government agencies will never demand payment in gift cards
• If your religious leader, grandchild or anyone else calls or emails and asks for money, call them back to make sure it’s really them before purchasing anything.

 If you think that you have been the victim of a scheme, you can report the incident to the FTC here. 

Also, be sure to report it to law enforcement and to the gift card company. 

  

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