The next time a telemarketer asks you to pay with a gift card, hang up. That single request is one of the most reliable warning signs that you’re dealing with a scammer.
Gift cards are one of the most perennially useful tools for fraudsters to steal your money because they’re great for making fast and largely anonymous transactions. According to the National Conference of State Legislatures, consumers have reported tens of thousands of gift card scams to the Federal Trade Commission (FTC) in recent years.
In 2024, the FTC received more than 41,000 fraud reports from scams involving gift cards and prepaid cards, with victims collectively losing an estimated $212 million. Last year, data compiled through the end of September suggests that annual losses for 2025 could be similar or worse.
This week, we break down how those gift card schemes work, how fraudsters are exploiting the Iran conflict and why any unsolicited call promising to lower your interest rate is almost certainly not on the up and up.
Where People Are Protecting Their Privacy Online Right Now
- NordVPN: Hide Your IP and Location Every Time You Surf the Web
- Surfshark VPN: Bundle All Your Devices Into One Low-Price Plan
- Lifelock by Norton: Identity Theft Protection That Defends Against Scams and More Online Theft Attempts
- Fraudulent payment demands: One common scam involves impersonators posing as government officials or tech support personnel. Victims get calls, emails or text messages demanding immediate payment via Apple or Google Play cards. The Michigan Attorney General reissued a consumer alert this week emphasizing that no legitimate business or government agency will ever demand payment via gift card, and that these are popular among criminals precisely because they’re difficult to trace.
Breaking news scams: The FTC recently put out a warning that fraudsters are already folding references to the Iran conflict into their pitches, using the news cycle as a hook to catch people off guard. In one version, a call or text appears to come from your bank, claiming fraudulent charges from Iran have been detected on your account. In another, a supposed military love interest says they’ve been deployed to Iran and urgently needs money. Then there are fake charities: Fraudsters create official-looking organizations claiming to help people displaced by the conflict. The common thread is that they ask victims to pay via gift card — which is not how legitimate charities operate.- Fictitious debt help: If you get an unsolicited call from someone who presents themselves as a debt relief or credit card company representative and offers to lower your credit card interest rate, it’s a scam. Here’s how it works: According to a new consumer alert issued by the FTC, fraudsters who obtain your personal details, such as your physical address or exact credit card balance, to appear legitimate can trick you into divulging even more sensitive information like your Social Security number. Others create urgency with “limited time” offers or “final courtesy call” scripts designed to rush you into a decision. Always remember that it’s illegal for debt relief companies to charge a fee before they’ve actually done anything for you — if you want a lower interest rate, you can call the number on the back of your card and ask your issuer directly. And of course, no legitimate lender or debt relief company will request or accept payment in gift cards.
Where People Are Protecting Their Privacy Online Right Now
- NordVPN: Hide Your IP and Location Every Time You Surf the Web
- Surfshark VPN: Bundle All Your Devices Into One Low-Price Plan
- Lifelock by Norton: Identity Theft Protection That Defends Against Scams and More Online Theft Attempts
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The most common types of scam you should know
Scammers are constantly upping their game, coming up with new and exciting ways (for them) of fooling their targets. AI-powered scams are one example of this; the technology is being used to reach a larger number of people with increasingly more convincing schemes.
But some tricks never run out of style. Most scams fall into a handful of familiar patterns, and many long-standing schemes are still a threat today. They’ve just evolved to better fit today’s digital landscape.
- Imposter scams: Scammers often pose as trusted figures such as government agencies, banks, employers and even friends or family to pressure victims into sending money or sharing personal information.
- Phishing and spoofing scams: These scams use emails, texts or phone calls that look like they’re from legitimate organizations. The goal is to trick you into clicking a malicious link, downloading malware or handing over sensitive information.
- Online shopping scams: Fraudsters can create fake online stores or listings with hard-to-find items at unusually low prices. After you pay for an article, what you end up getting might be counterfeit — or it may never arrive in the first place.
- Investment scams: This type of scam often arrives with promises of high returns from crypto, forex or other “exclusive” opportunities. Many involve long-term grooming tactics in which victims are encouraged to invest more over time before losing everything.
- Romance scams: Some scammers try to get into your pocket through the heart. They build a relationship with you on dating apps or social media, then convince you to give up money and assets by fabricating emergencies or investment opportunities.
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What to do if you’re the target — or victim — of a scam
No one is immune to scams or fraud, but a few consistent habits can reduce their danger and the damage they cause.
For starters, be skeptical of unsolicited messages, especially those creating fear or urgency. This might look like an email from your bank threatening to close an account, a text from an online marketplace saying you’ll lose a discount or a call from the IRS claiming they’ll report you to the authorities unless you “act now.”
Scammers love to use this sort of language because it puts you on the spot, which they expect will move you to action.
Always verify any requests from an organization by cross-checking with its official phone numbers, email or website. And don’t click any links, download attachments or respond to messages you suspect may be fraudulent. A legitimate organization will not pressure you for instant action or secrecy.
Now, if you’ve already sent financial information or money to someone you suspect is a scammer, you’ll need to take a few steps to protect your data and possibly get your money reimbursed. Contact your bank, credit card issuer or payment platform immediately and attempt to stop or reverse the transactions. Make sure to change any relevant passwords and enable multi-factor authentication to safeguard your accounts, too.
Reporting a scam might also help protect others. You can file a report with the Federal Trade Commission and with local authorities at your nearby police department or sheriff’s office. Identity theft victims should also consider temporarily freezing their credit.
Lastly, review your financial statements and credit reports regularly, keep your software updated and limit how much personal information you share online. Scammers often rely on publicly available details to make their schemes more convincing.
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The next time a telemarketer asks you to pay with a gift card, hang up. That single request is one of the most reliable warning signs that you’re dealing with a scammer.
Gift cards are one of the most perennially useful tools for fraudsters to steal your money because they’re great for making fast and largely anonymous transactions. According to the National Conference of State Legislatures, consumers have reported tens of thousands of gift card scams to the Federal Trade Commission (FTC) in recent years.
In 2024, the FTC received more than 41,000 fraud reports from scams involving gift cards and prepaid cards, with victims collectively losing an estimated $212 million. Last year, data compiled through the end of September suggests that annual losses for 2025 could be similar or worse.
This week, we break down how those gift card schemes work, how fraudsters are exploiting the Iran conflict and why any unsolicited call promising to lower your interest rate is almost certainly not on the up and up.
Where People Are Protecting Their Privacy Online Right Now
NordVPN: Hide Your IP and Location Every Time You Surf the Web
Surfshark VPN: Bundle All Your Devices Into One Low-Price Plan
Lifelock by Norton: Identity Theft Protection That Defends Against Scams and More Online Theft Attempts
Fraudulent payment demands: One common scam involves impersonators posing as government officials or tech support personnel. Victims get calls, emails or text messages demanding immediate payment via Apple or Google Play cards. The Michigan Attorney General reissued a consumer alert this week emphasizing that no legitimate business or government agency will ever demand payment via gift card, and that these are popular among criminals precisely because they’re difficult to trace.
Breaking news scams: The FTC recently put out a warning that fraudsters are already folding references to the Iran conflict into their pitches, using the news cycle as a hook to catch people off guard. In one version, a call or text appears to come from your bank, claiming fraudulent charges from Iran have been detected on your account. In another, a supposed military love interest says they’ve been deployed to Iran and urgently needs money. Then there are fake charities: Fraudsters create official-looking organizations claiming to help people displaced by the conflict. The common thread is that they ask victims to pay via gift card — which is not how legitimate charities operate.
Fictitious debt help: If you get an unsolicited call from someone who presents themselves as a debt relief or credit card company representative and offers to lower your credit card interest rate, it’s a scam. Here’s how it works: According to a new consumer alert issued by the FTC, fraudsters who obtain your personal details, such as your physical address or exact credit card balance, to appear legitimate can trick you into divulging even more sensitive information like your Social Security number
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