Gift cards are increasingly the payment method of choice for scammers, according to the Scamwatch website published by the Australian Competition and Consumer Commission (ACCC). More than $5 million was lost in 2018, a 38 per cent jump on the previous year.
iTunes cards accounted for $3.1 million in losses — a 156 percent increase from the $1.23 million reported in 2017. Scamwatch has also seen an increase in reports involving other gift cards such as Google Play, Amazon, and Steam cards, and Australia Post Load & Go prepaid debit cards.
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| ACCC Deputy Chair Delia Rickard |
“Scammers like to get gift cards as payment as it’s easy for them to quickly sell them on secondary markets and pocket the cash,” said ACCC Deputy Chair Delia Rickard.
“It’s concerning that the scammers are now demanding payment in other forms of gift cards. This is likely in response to scam warnings about using iTunes cards for paying scammers that are in stores and supermarkets and on the cards themselves.”
“It’s clear the scammers are diversifying their payments to try get around these warnings, so it’s vital people are aware that no legitimate company or government agency will ever ask you to make a payment with any sort of gift card,” Rickard said.
There are several common types of scams involving gift cards:
ATO impersonation scams
The scammer pretends to be from the Australian Taxation Office and claims there is a warrant for their victim’s arrest. The scammer asks the victim to pay an immediate ‘fine’ using gift cards or bitcoin, and claims police will come and arrest them if not.
Catch-a-hacker scam
The scammer calls and pretends to be from a law-enforcement agency or internet provider and convinces the victim they are trying to trace the location of a hacker who has compromised the victim’s computer. They claim they can do this by sending money from the victim’s bank account or via gift card serial numbers.
Victims are also tricked into giving up personal details with the promise of gift cards. Scammers entice victims to participate in surveys by promising gift cards as a prize, however the surveys extract personal information such as your name, date of birth, address details and even financial details like your credit card or bank numbers.
“If anyone asks for payment using a gift card, it is a scam, simple as that,” Rickard said.
“If you paid a scammer with a gift card, report it as soon as possible. Call the company that issued the gift card and tell them the gift card was used in a scam. It’s very difficult to get your money back but the sooner you report it, the better your chances.”
People can also make a report on the Scamwatch website.
