How to Protect Yourself from Gift Card Fraud
Gift card fraud is on the rise, with scammers using different tactics to trick people into handing over their money. These fraudsters might pretend to be a loved one in distress, an official from the government or Income Tax Department, or even a representative from your bank.
To safeguard yourself, it is crucial to understand the common types of gift voucher scams and recognise the signs of fraud.
In this blog, you will understand how this scam works and what different preventive measures you can take to protect yourself from it.
How Does Gift Card Fraud Work
Here is how online gift card fraud works:
- Fraudsters often pose as credible figures, such as company representatives, CEOs, managers, friends, family members, or trusted contacts. They use social media, emails, or messaging apps to reach their victims.
- To make their scam more believable, scammers create a sense of urgency or use emotional tricks to make you act quickly. They want you to respond quickly without checking if the request is real.
- Once you comply and purchase the gift cards with your own funds, the fraudster instructs you to share the card details or payment confirmation. After receiving this information, the scammer vanishes, leaving you to realise that you have been deceived.
- Gift card scam exploits trust and urgency, taking advantage of your willingness to help or receive rewards to successfully deceive unsuspecting individuals.
A Real-Life Example of Gift Voucher Fraud
As per recent news, a 27-year-old senior executive of a private cloud company was tricked into losing ₹70,000. She received an email that appeared to be from her CEO, asking her to buy Apple Store gift cards from Amazon as a reward for high-performing employees.
Following the instructions, she bought 14 gift cards worth ₹5,000 each and sent screenshots to the supposed CEO. Later, she was asked to buy 26 more cards for the same amount. After being unable to purchase additional cards due to her card limit, she reached out to her CEO. It was then that she discovered that the email was a scam and that she had been deceived.
How to Prevent Yourself from Gift Card Fraud
Here are some gift card fraud prevention tips you could follow:
-
Verify Requests
Always confirm the authenticity of bulk gift voucher requests, especially if they come from unfamiliar sources. Contact the person or organisation through official channels to check if the request is genuine. Avoid buying gift vouchers in bulk.
-
Watch out for Urgency
A major red flag for gift card scams is a sense of urgency. If you are pressured to send funds quickly or if you are told that a loved one is in trouble and needs immediate help, it is likely a gift card fraud scheme.
-
Be Alert for Scams
Delete suspicious emails or texts claiming you have won a gift card. Avoid clicking on links or downloading attachments from these messages.
-
Check Links
Ensure the URL of any website related to gift vouchers is legitimate and secure before clicking. Avoid suspicious links and downloading files from unknown sources.
-
Protect Personal Information
Never share your personal or credit card details or other sensitive data in response to unsolicited requests for gift vouchers.
-
Verify the Details
Review messages or emails carefully. Legitimate requests from reputable entities should follow professional communication standards.
-
Trust Your Instincts
When something sounds too good to be true, trust your gut and proceed cautiously. Report any suspicious activity to the relevant authorities, your bank, or the involved company.
The Bottomline
By staying informed and vigilant, you can better protect yourself from these gift card frauds. Always verify the legitimacy of requests, be cautious of urgent demands, and safeguard your personal information.
Trust your instincts and report any suspicious activity promptly to reduce your risk of falling victim to these scams. Being proactive and cautious can help you avoid the pitfalls of gift card scams and keep your finances secure.
|
You may also be interested to know |
|
|
1. |
How to Prevent Credit Card Frauds |
|
2. |
How to Prevent Fake SMS Scam |
|
3. |
How to Protect Demat Account from Fraud |
|
4. |
How to Secure Your Account from UPI Frauds |
|
5. |
Insurance Frauds in India - How to Avoid |