gift card fraud

Gift card fraud encompasses schemes where criminals exploit gift cards to steal money or goods.

Common tactics include draining card balances before legitimate buyers can use them, demanding gift card payments for fake debts or prizes, or using stolen credit cards to purchase gift cards for untraceable spending.

Scammers favor gift cards because transactions are difficult to reverse and hard to trace: The IRS will never ask for payment in gift cards—that's gift card fraud.