In scams involving consumers being told to buy gift cards, scammers have taken more money in the first nine months of 2021 than in all of 2020.
It’s been a banner year for scammers who like to make their victims use gift cards for payments. And the Federal Trade Commission said one retailer stands out above all others as the one scammers choose most often.
Nearly 40,000 consumers have reported gift card scams, losing $148 million in 2021, the FTC said. That amount, collected in the first nine months of 2021, was more than in all of 2020. In most cases, consumers said the scammers were impersonating large companies or government agencies — a common tactic.
The gift card that appears to be the favorite for scammers in 2021 is Target. The FTC said Target gift cards accounted for $35 million in scam payments, which was more than twice as much as any other brand.
The median amount lost when Target cards were used was $2,500. FTC said that was the highest of any brand of card. A third of victims who used Target cards reported losses of $5,000 or more.
The FTC said scammers also are more likely to tell victim to go to Target to buy a gift card — regardless of the brand of card — than any other store.
A request for more information from the FTC as to why scammers seem to be most interested in Target was not immediately returned.
When asked if it had any insight as to why its stores and gift cards seem to have attracted so much interest from scammers, Target didn’t respond to that specific question. In an email, the company said it works with outside security experts to reduce such crimes. It also educates employees on how to keep an eye out for customers who may be in the process of being scammed as well as adding signage to stores to warn customers.
Target noted this example from Ohio in 2019 of its workers thwarting a gift card scam in progress. Police said two employees noticed an elderly couple buying $2,000 in gift cards after ending a phone call as they walked into the store. Police said the couple had also purchased $5,000 in gift cards at another Target store less than an hour before that.
“Unfortunately, gift card scams are a persistent issue across the retail industry,” Target said in the email. “Target takes these crimes extremely seriously and we use a multi-layered, comprehensive approach to mitigate fraud that includes technology, team member training and collaboration with law enforcement.”
The median amount of money lost by consumers, regardless of the card used, has gone from $700 in 2018 to $1,000 today, FTC said.
There are some tell-tale signs that you are the prey in a gift card scam. Experts say scammers will often use your emotions against you — make you think you are in serious trouble if you don’t do what they say right away.
Here are common signs you are being scammed, according to the FTC.
The FTC has provided this list of contact information for popular gift card companies so you can be sure you are reaching out to a retailer and not another scammer if you need to report fraud.
For any other merchant gift cards, check the number on the back of the card to reach them or report it directly to the FTC.
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