If someone asks you to buy gift cards and read them the numbers on the back, it is a scam. Every single time. No exceptions. This is one of the most common and financially devastating scams, costing victims thousands of dollars — and once the money is gone, it is almost impossible to get back.

This guide explains how gift card scams work, why scammers use this method, and what to do if you or someone you care about has already been targeted.

The one rule you need to know

No legitimate business, government agency, utility company, or person will ever ask you to pay with gift cards.

Not the IRS. Not your bank. Not Microsoft. Not Apple. Not your electric company. Not a judge. Not a police officer.

If someone tells you to go buy gift cards and give them the numbers, they are trying to steal your money. Full stop. Hang up the phone.

How the scam works

The typical gift card scam follows this pattern:

1. The contact — a scammer calls, emails, or messages you pretending to be someone with authority or urgency: the IRS, your bank, tech support, a utility company, your boss, or a grandchild in trouble.
2. The story — they create a convincing reason you need to pay immediately: unpaid taxes, a warrant for your arrest, an overdue bill, a family emergency, or a work request.
3. The payment — they tell you to go to a store and buy gift cards (iTunes, Google Play, Steam, Amazon, Visa prepaid, etc.) for a specific amount, often hundreds or thousands of dollars.
4. The collection — they ask you to read the numbers off the back of the cards over the phone, or send photos of the cards. Sometimes they keep you on the phone while you're at the store.
5. The money vanishes — the scammer redeems or resells the gift card codes within minutes. The money is gone.

Why scammers love gift cards

Gift cards are the perfect crime tool:

• Untraceable — once the code is read, the money can be moved instantly and anonymously
• Irreversible — unlike a credit card charge or bank transfer, gift card payments can't be reversed or disputed
• Widely available — you can buy them at any grocery store, gas station, or pharmacy
• No ID required — large purchases don't require identification
• Cross-border — codes work globally, so scammers can operate from anywhere

Common scenarios

"The IRS says you owe back taxes"

You get a call claiming to be the IRS, saying you owe thousands in back taxes and a warrant has been issued for your arrest. They say you can avoid jail by paying immediately with gift cards. The IRS never calls demanding immediate payment, and they absolutely never accept gift cards.

"Your grandchild is in jail"

Someone calls sounding panicked — or uses an AI-cloned voice that sounds like your grandchild — saying they've been arrested or are in an accident and need bail money in gift cards. They beg you not to tell anyone. See Deepfakes and AI Voice Scams Explained for more on voice cloning.

"Your computer has a virus"

A pop-up appears on your screen or you get a call claiming to be from Microsoft, Apple, or another tech company. They say your computer is infected and they need gift card payment to fix it. Tech companies don't call you about viruses, and they don't accept gift cards for support. See Pop-Ups and Ads for handling fake virus warnings.

"Your boss needs a favor"

You receive an email or text that appears to be from your manager asking you to quickly buy gift cards for a client event, team appreciation, or business expense. They say they'll reimburse you. No real boss will ask you to buy gift cards with your own money over text.

"You've won a prize"

Someone tells you that you've won a lottery, sweepstakes, or prize, but you need to pay taxes or processing fees with gift cards to claim it. Legitimate prizes never require upfront payment, especially not in gift cards.

"Romance and online relationships"

Someone you've been talking to online — a romantic interest, a new friend — eventually needs financial help and asks for gift cards because they "can't access their bank." See Social Engineering Attacks for more on how scammers build trust before asking for money.

Red flags checklist

Any of these should make you stop and think:

• Someone asks you to pay for anything with gift cards
• They tell you to stay on the phone while you go to the store
• They say not to tell anyone — not the cashier, not your family
• They create extreme urgency — "today or you'll be arrested"
• They ask you to buy multiple gift cards in different denominations
• They insist on a specific brand of gift card
• They ask for the numbers on the back of the card (not the receipt)
• They contact you out of the blue about a problem you didn't know existed
• They get angry or threatening when you hesitate

What to do if you already paid

If you've already bought gift cards and shared the numbers, act immediately — speed matters:

1. Contact the gift card company right away. Call the number on the back of the card and tell them the card was used in a scam. Some companies can freeze remaining funds.
   • Apple/iTunes: 1-800-275-2273
   • Google Play: 1-855-836-3987
   • Amazon: 1-888-280-4331
   • Steam: contact through help.steampowered.com
   • Visa/Mastercard prepaid: call the number on the back of the specific card
2. Save the cards and receipts. Keep the physical cards, any receipts, and screenshots of any messages or emails. These are evidence.
3. Report the scam. File a report with the FTC at reportfraud.ftc.gov and your local police department.
4. Tell someone you trust. There is no shame in being scammed — these criminals are professionals who target smart, caring people. Telling someone can help you get support and may prevent them from being targeted too.
5. Be alert for follow-up scams. Scammers sometimes contact victims again, posing as a recovery service or law enforcement claiming they can get your money back — for a fee. This is a second scam.

Getting money back from gift card scams is unfortunately rare, but reporting helps law enforcement track and shut down scam operations.

How to protect yourself and your family

• Discuss gift card scams with older family members. This scam disproportionately targets older adults. A direct, caring conversation can prevent thousands in losses.
• Agree that no one in the family will ever send gift cards without calling the requester directly on a number they already have.
• Store employees sometimes intervene — if a cashier asks why you're buying multiple gift cards, be honest. They may be trained to spot this scam and are trying to help.
• Put a note on the phone or fridge: "No one real asks for gift cards as payment."

Short version

The one rule about gift cards:

No legitimate organization or person will ever ask you to pay with gift cards. If someone does, it is a scam. Hang up.

If it already happened:

1. Call the gift card company — numbers are on the back of the card
2. Save everything — cards, receipts, messages
3. Report to the FTC at reportfraud.ftc.gov
4. Don't be ashamed — scammers are professionals, and this happens to smart people every day