Technology
6 sneaky gift card scams to watch out for this holiday season
With the holiday season just around the corner, many of us are gearing up to spread some cheer with gift cards.
However, it’s important to remember that these convenient gifts are also a favorite target for scammers. We’re going to break down six sneaky gift card tricks that could leave you out of pocket during this time of year.
Don’t worry, though. We’ve got your back with solid tips on how to outsmart these scammers and keep your hard-earned cash safe.
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Image of a holiday gift card (Kurt “CyberGuy” Knutsson)
1. Display rack gift card trick
One of the latest gift card tricks involves tampering with the gift cards on the display racks at retail stores. Scammers will record the activation code on the card or place a custom barcode sticker over the real barcode, which allows them to secretly load the cash onto their own card immediately after you purchase the gift card. This means that when you or your recipient try to use the gift card, it will be empty or invalid.
How to avoid this scam
Check the packaging of the gift card before buying it. Look for signs of tampering, such as the wrapping being torn or resealed or stickers placed over the barcode or card number. Also, choose a card from the back of the rack, as scammers often place their fraudulent cards at the front of the display.
Fake scratch-off label on top of already scratched-off gift card label (Kurt “CyberGuy” Knutsson)
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2. Impersonation gift card trick
Another common gift card trick scammers use involves impersonating someone you know or trust, such as a family member, a romantic interest, a company or the government. Scammers will contact you by phone, text, email or social media and create a fake story or emergency that requires you to send them money urgently.
They will ask you to buy a gift card or multiple gift cards and then send them a photo of the card or the numbers on the back of the card. Once they have the gift card information, they will disappear with your money and cut off contact.
How to avoid this scam
Never send money or gift cards to anyone you don’t know personally or haven’t met in person. If someone claims to be someone you know or trust, verify their identity by contacting them directly through a different channel.
Don’t trust caller ID, as scammers can spoof phone numbers. Don’t be pressured by threats or promises, as scammers use emotional manipulation to get you to act quickly and without thinking. And remember, no legitimate company or government agency will ever ask you to pay them with a gift card.
A person holding a gift card (Kurt “CyberGuy” Knutsson)
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3. Resale gift card trick
Another gift card trick involves buying or selling gift cards on online platforms, such as websites, apps or social media groups. Scammers will offer to sell you gift cards at a discounted price or buy your unwanted gift cards for cash.
However, they will either send you a fake or empty gift card or take your gift card information and money without sending you anything in return. They may also use stolen credit cards or hacked accounts to buy or sell gift cards, which can put you at risk of fraud or identity theft.
How to avoid this scam
Only buy or sell gift cards from reputable sources, such as official retailers, authorized resellers or trusted friends and family. Avoid buying or selling gift cards from strangers online, especially if they offer a deal that sounds too good to be true.
Don’t share your gift card information or personal details with anyone you don’t know or trust. And use a secure payment method that offers protection, such as a credit card or PayPal, instead of a gift card, wire transfer or cash.
A person giving a gift card as a present (Kurt “CyberGuy” Knutsson)
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4. Phishing gift card trick
A very popular gift card trick this holiday season involves phishing, which is a type of online fraud that tries to trick you into revealing your personal or financial information. Scammers will send you an email, text or pop-up message that looks like it comes from a legitimate company, such as a retailer, bank or tech support service.
They will claim that there is a problem with your account, your order, your device or your security and that you need to verify your identity, update your information or fix an issue. They will then ask you to click on a link, open an attachment or call a number and then request that you pay them with a gift card or provide them with your gift card information.
How to avoid this scam
Never click on links, open attachments or call numbers from unsolicited messages, as they may lead to fake or malicious websites or software. Don’t provide any personal or financial information, such as your passwords, PINs, account numbers or gift card numbers, to anyone who contacts you unexpectedly.
Don’t trust messages that create a sense of urgency, pressure or fear, as they are designed to make you act without thinking. If you have any doubts about the legitimacy of a message, contact the company directly using a verified website, phone number or email address.
Using antivirus protection will help to protect you against scammers and hackers who try to steal your money and personal information using gift card tricks, especially through phishing. The best way to protect yourself from clicking on any malicious links, fake websites, phishing emails and text messages is to have strong antivirus protection installed and actively running on all your devices. It’s the best to help stop and alert you of any malware in your system and ultimately protect you from being hacked.
Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android and iOS devices.
A person purchasing a gift card online (Kurt “CyberGuy” Knutsson)
5. Loyalty program gift card trick
This gift card trick involves loyalty programs, which are rewards programs that offer you points, discounts or freebies for being a loyal customer. Scammers will pretend to be representatives of a loyalty program that you are a member of or that you are eligible to join.
They will tell you that you have won a prize, sweepstakes or a promotion and that you need to pay a fee, a tax or a shipping cost to claim it. They will then ask you to pay them with a gift card or provide them with your gift card information.
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How to avoid this scam
Be wary of any unsolicited offers or notifications that claim that you have won something, especially if you don’t remember entering or signing up for anything. Don’t pay any money or fees to receive a prize, as legitimate loyalty programs will never ask you to do that. Don’t provide any personal or financial information, such as your passwords, account numbers or gift card numbers, to anyone who contacts you unexpectedly.
Don’t trust messages that create a sense of excitement, curiosity or greed, as they are designed to make you act impulsively. If you have any doubts about the legitimacy of a message, contact the loyalty program directly using a verified website, phone number or email address.
A person purchasing a gift card online (Kurt “CyberGuy” Knutsson)
6. Fake balance checker scam
In this scam, fraudsters set up fake websites or phone services that claim to check the balance of your gift cards. Victims are lured into providing their gift card numbers and PINs under the guise of verifying their balance. Once the information is entered, scammers can drain the funds from the card almost immediately.
How to avoid this scam
To avoid this scam, always use official websites or apps from reputable retailers to check your gift card balance. Be wary of unsolicited calls or messages asking for your gift card information, especially if they claim to be from a legitimate company. It is important never to enter your gift card details on unfamiliar websites.
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How to safely give and receive gift cards
- Buy gift cards online instead of physical cards directly from the store, not from third parties. You can also use these favorite sites and apps that will reward you with a percentage back on all gift card purchases.
- Avoid gift card racks at retail stores like the grocery store. If you still want to buy one at the store, dig back into the pile without taking the first ones off the rack. Inspect them like a detective before you buy them to make sure they are unaltered.
- Register the gift card directly with the retailer if offered, which also helps track the card balance.
- Never engage in any gift card transactions from callers making unusual claims. It is likely a scam.
- Avoid buying gift cards from online auction sites like eBay.
- Never provide personal financial information beyond a method of payment to anyone offering gift cards in-store or online.
- Use strong antivirus protection. Strong antivirus software is a must-have to protect against scammers and hackers who try to steal your money and personal information using gift card tricks, especially through phishing. The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android and iOS devices.
I’ve been scammed! What to do next?
Below are some next steps if you find you or your loved one is a victim of identity theft as a result of a gift card trick by scammers or hackers.
1. If you can regain control of your accounts, change your passwords and inform the account provider.
2. Look through bank statements and checking account transactions to see where outlier activity started.
3. Use an identity theft protection service: Identity theft companies can monitor personal information like your Social Security number, phone number and email address and alert you if it is being sold on the dark web or being used to open an account. They can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals. Some of the best parts of using an identity theft protection service include identity theft insurance to cover losses and legal fees and a white-glove fraud resolution team where a U.S.-based case manager helps you recover any losses. See my tips and best picks on how to protect yourself from identity theft.
4. Report any breaches to official government agencies like the Federal Trade Commission and the gift card company.
5. Get the professional advice of a lawyer before speaking to law enforcement, especially when you are dealing with criminal identity theft and if being a victim of criminal identity theft leaves you unable to secure employment or housing.
6. Alert all three major credit bureaus and possibly place a fraud alert on your credit report.
7. Run your own background check or request a copy of one if that is how you discovered your information has been used by a criminal.
If you are a victim of identity theft because of a gift card scam, the most important thing to do is to take immediate action to mitigate the damage and prevent further harm.
Kurt’s key takeaways
As we head into the holiday season, it’s important to keep an eye out for these six gift card scams we’ve talked about. If something feels off or sounds too good to be true, trust your gut and don’t be afraid to ask questions or walk away. Gift cards are meant to bring joy, not stress, so keep these tips in mind as you shop and share this season.
Have you ever fallen victim to a gift card scam? If so, how did it happen, and what did you do? Let us know by writing us at Cyberguy.com/Contact.
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Copyright 2024 CyberGuy.com. All rights reserved.
Amazon’s rolling out a free software update for Echo Hub devices that gives the home screen a much-needed update to the interface it launched with in 2024. It had already added Alex Plus AI support, but the new interface has a cleaner, fully customizable layout that fits more smart home info and controls on the screen than the previous version.
The Echo Hub is also getting access to Ring AI’s Video Search feature that lets you use natural language to search through your smart home camera footage, as well as Alexa Plus summaries of detected camera events.
These are the five new features Amazon highlighted for the Echo Hub:
Organize by r …
Read the full story at The Verge.
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The FBI calls it a “distress scam.” It is also known as a grandparent scam. The scam works by making an older adult believe a grandchild is in serious trouble and needs money right away, often before a court date or legal deadline. Victims reported more than $5 million in losses to this type of fraud in 2025. The FBI’s Internet Crime Complaint Center also noted that reported losses likely show only part of what scammers actually stole.
The Federal Trade Commission found in August 2025 that some of the fastest-growing scams targeting older adults use fear and urgency to override good judgment. A caller may claim your bank account was hacked and say you need to move your money immediately to protect it. However, the money does not move to safety. It goes straight to the scammer.
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AI voice-cloning tools have made these scams even more convincing. Scammers can use a birthday video, voicemail or social media clip to mimic a grandchild’s voice. Then they place the call. The voice sounds familiar, the emergency feels real and the request for bail money seems urgent. The FBI counted $352 million in AI-related scam losses among victims 60 and older this past year.
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Scammers are using stolen personal data, AI voice cloning and urgent phone calls to trick grandparents into sending money. (ljubaphoto/Getty Images)
What makes grandparents worth targeting
The same three pieces of data are required for identity verification at most banks, brokerages, pension recordkeepers, and Medicare: date of birth, last four digits of a Social Security number, and a current mailing address. For most people in their sixties and seventies, all of those accounts are open.
Those three fields have turned up in breach after breach. The Conduent Business Services breach pulled names, SSNs, dates of birth, and home addresses for more than 25 million Americans from systems that process Medicaid records and employer health plans. Texas Attorney General Ken Paxton called it the largest data breach in U.S. history in February 2026.
Americans between 65 and 74 held a median net worth of $409,900 in 2022, according to the Federal Reserve’s Survey of Consumer Finances, more than ten times the median for adults under 35. The FBI found average losses of approximately $38,500 per victim among Americans 60 and older in 2025, nearly double the figure for younger filers.
Why elder fraud losses are often underreported
Older adults reported $2.4 billion in fraud losses to the Federal Trade Commission in 2024. However, the FTC’s December 2025 report to Congress estimated that real losses may have reached $81.5 billion that year. Most cases likely went unreported.
That gap makes identity theft harder to stop. A fraudulent wire from a pension account may never alert a bank. A new credit account opened with stolen information may not reach the victim until it appears on a credit report. By then, weeks may have passed since the application was approved.
Account protections worth setting up
Scammers move fast, so it helps to set up account protections before anything goes wrong. These steps can give banks, brokerage firms and family members more ways to spot trouble early.
1) Add a trusted contact to brokerage accounts
Brokerage accounts have a protection option many account holders never activate: a trusted contact designation. Under FINRA Rule 4512, brokerage firms must ask for a trusted contact when you open or update an account. A trusted contact can be a family member, attorney or accountant. The firm can contact that person if it suspects financial exploitation or cannot reach you. However, that person cannot trade, withdraw funds or view your account balances. FINRA, the SEC and the North American Securities Administrators Association asked investors in August 2025 to contact their firm and add one. You can name more than one trusted contact. You can also change the designation at any time.
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Families can help protect older adults by adding trusted contacts, verifying urgent calls and blocking online Social Security changes. (Kurt “CyberGuy” Knutsson)
2) Ask about holds on suspicious withdrawals
Under FINRA Rule 2165, brokerage firms can place a temporary hold on disbursements when they reasonably believe financial exploitation may be happening. That hold can last up to 55 business days. In January 2026, FINRA proposed extending the window to 145 business days. Ask any firm holding a pension, brokerage or annuity account about its policy on disbursements after an address change.
3) Verify urgent calls before sending money
When a caller claims a grandchild is in trouble or a federal agent needs immediate action, hang up. Then call back using a number you already have, not the number in the message. The FTC found that 41% of older adults who reported losing $10,000 or more to impersonation scams in 2024 said a phone call was the initial point of contact. That makes one simple habit especially important: verify the story before you act.
4) Block online changes to Social Security
Social Security lets you block electronic and automated telephone access to your account record. Once blocked, no one can change your direct deposit information or mailing address online or through the automated phone system. After that, any changes must go through a live SSA representative at 1-800-772-1213 or a field office visit. FINRA also operates a free Securities Helpline for Seniors at 844-574-3577, Monday through Friday, 9 a.m. to 5 p.m. ET.
Identity theft recovery is harder on your own
Even strong account protections may not catch every scam attempt. That is why identity theft monitoring and recovery support can help families respond faster when personal information gets exposed or misused.
Some identity theft protection services monitor dark web marketplaces, data broker sites and people-search sites for exposed Social Security numbers, addresses and other personal information. If fraud happens, recovery support may help contact creditors, file disputes with the three credit bureaus and organize the documentation needed to restore an identity.
OUTSMART HACKERS WHO ARE OUT TO STEAL YOUR IDENTITY
Older Americans remain prime targets for identity theft because scammers can exploit exposed Social Security numbers, birth dates and addresses. (Kurt “CyberGuy” Knutsson)
Some plans also include identity theft insurance for eligible recovery costs, such as lost wages and legal fees.
No service prevents every misuse of an older adult’s identity. However, family monitoring and fraud resolution can shorten the time between when theft happens and when you or someone in your family acts on it.
See my tips and best picks on Best Identity Theft Protection at Cyberguy.com
Kurt’s key takeaways
Grandparents have become a prime target because scammers know where the money is and how to create panic fast. A familiar voice, a stolen Social Security number or a fake emergency can turn one phone call into a devastating loss. The best defense starts before the call comes. Add trusted contacts to financial accounts, block online Social Security changes, verify urgent requests through a number you already know and talk openly with family about scam warning signs. Identity theft protection can also help spot exposed personal information and speed up recovery if fraud happens. No family can stop every scam attempt. However, a simple plan can give older adults more time, more backup and a better chance of keeping their money safe.
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Is enough being done to stop scammers from using AI voices and stolen data to target grandparents? Let us know by writing to us at Cyberguy.com
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Technology
A warrantless wiretap law is about to expire — but surveillance networks aren’t actually ‘going dark’
Congress has failed to pass a three-week extension of Section 702 of the Foreign Intelligence Surveillance Act (FISA), with the House voting 218-198 against reauthorizing the controversial warrantless wiretapping authority through July 2nd. After a short-term extension earlier this year, the spying program now appears set to lapse for at least a week. This is the nightmare scenario FISA’s proponents have been warning about — but it doesn’t actually mean the US has lost its surveillance capabilities.
Proponents of a clean extension claim a lapse will hinder intelligence agencies’ efforts to thwart potential terrorist attacks, with surveillance networks “going dark”. Sen. Tom Cotton (R-AR) stressed the importance of reauthorizing Section 702 ahead of the World Cup. House Speaker Mike Johnson (R-LA) has said even a brief lapse would be disastrous. “Democrats in the Senate are playing political games right now with the lives of Americans,” he told reporters Wednesday. “It’s a very dangerous situation.”
In March, the FISA court recertified surveillance under Section 702 until 2027. The Brennan Center for Justice notes that a lapse won’t allow telecom companies to flout requests to hand over communications information to the NSA and other spy agencies. In 2008, after Yahoo failed to comply with a Section 702 request during a lapse, the FISA court ruled that the directives issued under Section 702 are effective while the certification is in place — even in the event of a lapse.
“The phrase ‘going dark’ is significantly misleading,” Andrea Sawka Fiegl, the senior policy director for media and technology at Common Cause, said on a Tuesday press call. Fiegl added that companies don’t choose whether they participate in surveillance under Section 702. If they don’t comply after being served with a directive, they face fines starting at $250,000 a day.
“The ‘going dark’ framing is basically a pressure tactic designed to strip Congress of its leverage to negotiate reforms by creating this false binary,” Fiegl said. “There is ample time for Congress to consider and pass reforms.”
Among those reforms are a warrant requirement for queries involving US persons, including so-called “backdoor searches” in which intelligence agencies identify a foreign target with ties to a US person, and then search that person’s communications, thus granting them access to their desired US target. Reformers also want to prohibit intelligence agencies from buying Americans’ data from private brokers to get around warrant requirements.
“Every day that Section 702 is in effect without reforms is a day that Americans’ rights are under threat,” Sen. Ron Wyden (D-OR) said in a statement Wednesday night, after Senate Republicans blocked his request for a five-week extension of Section 702 with new transparency requirements. “If there is going to be an extension of these authorities, there needs to be some guardrails or at least some transparency that would allow Congress and the American people to understand the abuses that have taken place and the need for reforms.”
Though President Donald Trump and Republican leaders in both chambers have called for a clean reauthorization of Section 702, there’s bipartisan appetite for reform — and a handful of Republican holdouts stand in the way of a clean reauthorization. Most Democrats — even some who have supported reauthorization in the past — have objected to a clean extension due to Trump’s appointment of Bill Pulte as acting director of national intelligence.
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