Gift Card Scams

The secondary gift card market provides a space for consumers to sell unused and unwanted gift cards, but can also be home to different types of gift card scams. Gift card scams occur when:

• The victim sells a gift card on an auction site and sends the PIN associated with the gift card to the buyer, who then disputes the charge to the seller after using the gift card.
• Victim purchases an item on an auction site and is advised by the seller to purchase thousands of dollars in gift cards to pay for the transaction. 
• A Secondary Gift Card Market site agrees to pay a victim for a discounted merchant gift card. The victim sends the code on the gift card, and the payment for the transaction was reversed.

Take these steps to protect yourself when buying and selling gift cards in the Secondary Gift Card Market:

• Check Secondary Gift Card Market website reviews. Only buy from or sell to reputable sites.
• Check the gift card balance before and after purchasing the card.
• When selling a gift card through an online marketplace, do not provide the buyer with the card’s PIN until the transaction is complete.
• When purchasing gift cards online, be leery of auction sites selling gift cards at a discount or in bulk.
• Watch for social media postings that appear to offer vouchers or gift cards, such as a free $500 gift card. The fraudulent postings often look as if a friend shared the link.
• Never provide your personal information to an unknown party or untrustworthy website.