No company, government organization, or reputed business demands payments using vouchers. So, the messages, calls, chats, or emails you are getting are surely from scammers, fraudsters, and malicious entities. Whenever you come across such elements, make sure not to respond to them or do as they ask you to do. Instead, you should make an investigation, report the incident to the online scam investigation authorities, and block the contact instantly,
Remember, if an unfamiliar or official member of an agency or business asks you to pay money using a Gift card, he is most likely a scammer. Don’t act quickly or provide anything confidential to such an individual. You may suffer financial loss in the course of the event.
If you want to avoid gift card fraud and learn how fraudsters scam people, this write-up is for you. It will discuss all the topics and tips to help you stay alert and safe from online swindlers. So let’s get started!
What Are The Common Types Of Gift Card Scams?
There are different types of gift card scams fraudsters use to scam ordinary people. They are romance scams, lottery scams, government scams, tech support scams, and company scams. Each one is named after the ways, purposes, and other elements involved in the act they are carried out. Here are some common examples of gift card scams:
Lottery Prize
In this type of voucher fraud, you will receive a call, notification, email, or text message from a stranger informing you about the fact that you have won a prize or lottery. It will mention the prize money and the short-term validity of the coupon. Now, it will demand immediate payment of taxes, upfront fees, and other dues to claim the prize within a short time. If you fail to pay the dues within the valid time, your lottery prize will stand null and void. Facing this urgent situation and feeling excited about claiming the winning prize, individuals often make hasty decisions and pay the amount to the scammers. As soon as you pay the amount and share the details with the person on the other side, your money is gone, and you are scammed.
Tech Support
Fraudsters use tech support as another effective way to bilk money from the common masses. In this process, they approach their target, acting as a legitimate support provider from reputed companies such as Apple, Google, Microsoft, Etc. They tell the users that their computers are infected with malware and viruses, and if this malicious software is not removed from the device sooner, it will corrupt their system, steal stored data, or delete the necessary files from it. Scammers scare their target to take immediate action to set the account straight. During the events, they persuade the user to buy antimalware software to deal with the threats. To complete this transaction, they ask the victim to buy gift cards to pay for antivirus software subscriptions. These vouchers are the real bone of contention. Whoever purchases them they are fooled by the fraudsters.
Fake Officials
Sometimes, scammers pretend to be government officials, utility company employees, or income tax agents who ask the victim to pay bills, outstanding fines, and taxes immediately to avoid extra charges and penalties in the near future. However, to pay all these dues, they want the target to buy vouchers and coupons. They specifically mention to the victim that this is the fastest way they can resolve their issue of dues and penalties. Moreover, they promise exemptions for paying the full amount if this process is used to settle the amounts. Victims become overexcited over this promise, and to get the benefit, they fall prey to the conmens` trap. They buy the vouchers and share the details with the counterfeit officials. The end result is they lose their hard-earned money to the swindlers.
Romance Scams
Romance Scams are the most popular frauds in which swindlers target individuals to bilk money from them. Fraudsters build fake relationships with individuals and show intense emotions towards them. They express complete honesty towards their target and shower them with love and compliments. They ask for gift cards from their beloved as a token of their love. The victim feels the attachment and buys expensive vouchers and coupons. During the course of the event, the relationship takes a sudden twist. In these conditions, they tell the victims that they have to move on to a new town at once due to their new posting, and they need financial help to settle some accounts. To do so, they will ask the victim to give them some amount they promise to return once they are settled with their new job post. Again, the victim pays the amount out of sympathy and love to their fake dates. By the time they realize the truth, it is too late. They lose their hard-earned money and become mentally frustrated when learning the truth about the fake relationship.
Urgent Need
Sometimes, scammers act like family members, distant relatives, friends, or acquaintances who are stuck in a situation far from their home. He needs some money urgently to deal with the situation. He promises to pay back the money once he gets back home. He asks to buy vouchers and share the details with him. Sensing the urgency of the situation, a person follows the bid to buy gift coupons for those in need. But as always, it was too a scam that he realizes when everything has long gone.
There are various other types of gift card fraud that scammers use to steal money from people. They may promise a dream job opportunity to a person if they buy them gift vouchers and pay for e-presents. In all situations, the same pattern follows. That is, a swindler convinces their target person to buy vouchers and share the information with them. Using this information, they quickly claim the funds and become invisible. Victims cannot find them or track the transactions redeemed using their e-gift vouchers.
Utility Companies
Sometimes you get fake calls from utility companies such as electricity, water supply, or telecom companies. The agent on the call tells you about an unknown error in your bill and demands immediate payment to resolve the issue. They ask you to pay your bill using unconventional methods such as wire, gift card, or voucher. Also, they force you to pay the amount as soon as possible to avoid extra charges or disconnection of your service.
Remember, if you ever come across such a situation, you should know that such demands are only from a fraudster. Do not make any hasty decision in any of such situations if you want to avoid fraud. No utility company follows any of the methods to accept their payments. For more clarification, take your time and do some research to confirm the case. Call the authentic agencies and relate your case. You will be able to deal with the issue appropriately.
QR Code Tampering
Black hats hijack QR codes by pasting a fake QR code over the real one. The fake ones are bundled with malicious sites and illegitimate payment links. If a person scans these codes, they are led to malicious websites. One wrong click and malware are downloaded to their devices. Also, sometimes, a victim ends up paying an amount to a black hat when they scan these malicious codes. Hence, fake QR codes are also used to commit gift card fraud.
How To Prevent Gift Card Scams?
You have to remain extra cautious while dealing with strangers asking for payments using gift cards. They are fraudsters who are looking to steal money from technically vulnerable people. If you lack knowledge of how to deal with such a situation then don’t worry. Here are some time-tested tips that will help you beat the scammers efficiently.
Verify Requests
Computer security software monitors your PC in real-time. That means it actively keeps an eye on online threats, worms, creepers, and lurking dangers all the time, whether your device is on or off. The proactive monitoring feature leaves no space or chance for any malware to infiltrate or infect your operating system. You can fend off all the cybersecurity attacks efficiently with the help of antimalware solutions.
Report Suspicious Contacts
If you find anything suspicious and harmful about the request, then do not stay calm. Instead of this, report the suspicious activities as soon as possible. Note down the numbers, text messages, and emails you received from unknown sources and mention them in your report. Fraud investigation agencies like the FTC will find out the people working behind these scams and protect others from losing their hard-earned money. It will take appropriate actions to deal with the issue in the near future and bring criminals to justice.
Clarify the Urgency of the Matter
Scammers often use urgency as a convincing tool to force their victims to take immediate action. Hence, if you come across any such emergency situation, then it is an obligation upon you to question further and clarify this emergency. If things are not clinging in the process, you find something missing, then do not cooperate, and do not share any personal details with the person sitting on the other side. Also, do not become lured by their promises and urgent lucrative offers. These all are tactics that black hats use to seduce their victims and commit mistakes without thinking much about anything risky.
Using Fraud Detection Tools
Using fraud detection tools is another best way to deal with voucher fraud. These tools are specially built to detect suspicious activities connected to gift card purchases. They analyze transaction data in real-time and block unsafe purchases to prevent the impact of scams. You will get notification alerts if anyone tries to use your cards without your specified permission. Hence, implementing anti-fraud programs will be highly helpful to protect your online transactions.
Restrict On High-Value Vouchers
It would be best to set limits on your high-value gift-card purchases. Doing so will do away with the risks of large amounts of financial loss in the process. This policy is highly effective with regard to small, medium, and large businesses. It will create a barrier making things difficult for the fraudsters to commit huge financial scams. As a result, scammers will not attempt any fraud on any business to steal their valuable money.
Track the Gift Cards
Tracking gift cards is essential to ensure the safety and security of your e-vouchers. It allows you to detect and track the illegal activities related to their usage and source of redeem. This technology helps people and businesses use preventative measures to deal with harmful activities and scams along the way. It helps you identify vulnerable security points and other unauthorized transfers. Due to this, you will be able to monitor the potential security risks and vulnerabilities in the near future.
Robust Return Policy
Configuring strict return policies will be highly helpful in dealing with gift card fraud. In this policy, merchants ensure that the amount is returned to the original payment method instead of being turned into vouchers. It can reduce the risk of big losses that happen during the return of gift cards. Including robust refund policies in the statement and the process is another important thing that one should include in this policy. These statements keep things clear for all the parties involved in the transactions, especially for the customers. In case of any error or misunderstanding, customers can get full compensation for the purchase amount.
Buy From Authentic Retailers
For authenticity and security, it is essential that you buy things only from authentic retailers. They follow a strict customer-centric policy to ensure the legitimacy of their gifts and complete client satisfaction. They offer round-the-clock customer support services to sort the queries and errors that come up during any transaction. This support is available around the clock to the customers, which allows you to find easy solutions to deal with the underlying problem. Additionally, there is complete protection against fraud, fake vouchers, and already-used coupons. Hence, make sure to use only authentic platforms to buy your vouchers.
Follow Strict Activation Rules
You should use strict rules to activate and redeem the voucher to protect it from potential fraud. These rules can include the intervention of physical staff to activate the code properly and beat the scammers at stealing their money. Online activation without the help of actual agents poses a significant threat of fraud and scams. It increases the risk of tampering and data theft. The presence of the customer and the vendor at the same place prevents unsafe delivery of voucher value.
Use An Account To Buy Cards
It is highly recommended that you create an account to buy the gift voucher. It will enhance your checkouts, mitigate risks, and beat the scammers. Most importantly, this act allows companies to collect customer data and details that help authenticate their information and deliver the amount to the right client. Companies become capable of contacting customers and notifying them about important events and transaction history, analyzing buying patterns, and delivering personalized services to customers.
