FORT WAYNE, Ind. (WOWO) – Today’s scammers want gift cards as payment, leaving those unaware of this tactic vulnerable to schemes designed to commit fraud.

Better Business Bureau (BBB) research shows fraud reports to BBB Scam Tracker involving gift cards as a form of payment spiked in the first three quarters of 2023, up 50% from the same period the year prior.

Scammers have doubled down on gift cards as a method to steal money from consumers – especially online shoppers – leading retailers to implement new fraud prevention solutions in response.

The Better Business Bureau serving Northern Indiana is warning consumers about gift card payment scams. These scams are on the rise, and scammers are using a variety of excuses to convince victims to buy gift cards and provide them with the numbers on the back of the cards.

“Scammers love gift cards because they are easy to steal and impossible to track. Once a scammer has the numbers on the back of a gift card, they can quickly steal the money loaded on the card.” – Rick Walz, President and CEO of BBB Serving Northern Indiana.

Here are some of the red flags of a gift card payment scam:

• Someone calls you and claims to be from a government agency, utility company, or tech support company. They say that you owe them money and that you need to pay them immediately with a gift card.
• Someone sends you an email or text message that claims to be from a company or organization that you know. The message says that you have won a prize or that you need to update your account information. They ask you to provide them with the numbers on the back of a gift card in order to claim your prize or update your account.
• Someone posts an ad online selling a product or service that you are interested in. They ask you to pay them with a gift card.

If you are contacted by someone who asks you to pay them with a gift card, be very cautious. Do not give out any personal information, and do not provide the numbers on the back of a gift card.

Here are some tips to help you avoid gift card payment scams:

• Be wary of anyone asking for payment with a gift card, including “government” agencies. No legitimate government organization will ask you to pay with a gift card.
•  Never pay with a gift card for something that you can pay for with a credit card, debit card, or check.
• If you suspect a scam, contact the gift card seller, the actual business or government organization supposedly asking for money, and BBB to ask if you are dealing with a scammer. To find contact information, go directly to the organization’s website rather than search for their customer service number, which can be spoofed by scammers.
• Be especially wary of unsolicited emails, text messages, or social media messages that ask you to pay with a gift card.
•  Keep all information related to your purchase if you are scammed, because some retailers may require that information for refunds.
• If you suspect fraud, act immediately, contact the gift card seller or the number on the back of the card to report it.
• If you have been the victim of a gift card payment scam, report it to the BBB at BBB.org/ScamTracker and to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.
• Visit BBB.org to check out a business or register a complaint or find out more about this scam and other scams.