When someone calls, emails, or messages you saying you owe money—or that a loved one is in trouble—they may demand payment with gift cards. Here’s how these scams work, why they use prepaid cards, and what to do if it happens to you.
What Is a Gift-Card Extortion Scam?
A gift-card extortion scam is when a scammer pressures you to pay immediately—often to avoid arrest, help a family member, or fix a “problem” with your account.
They tell you to buy prepaid gift cards, such as iTunes, Google Play, or reloadable store cards, and give them the codes. Once they have those codes, the money is gone. It cannot be traced or recovered.
Why Scammers Want Gift Cards
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They are hard to trace once redeemed.
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They can be spent right away or resold for cash.
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They avoid detection compared to bank transfers or wires.
Common Gift-Card Scam Examples
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A fake IRS agent claims you owe back taxes and must pay with gift cards to avoid arrest.
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A “grandchild” calls from “jail” and begs for gift cards to cover bail.
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A fake tech-support agent says your computer is infected and demands iTunes cards as a “service fee.”
What to Do If You’re Asked for Gift Cards
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Pause and verify. Real agencies, companies, and relatives will not demand gift cards. Call back using a number you know is correct.
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Do not pay. Once you give a gift-card code, the scammer will use it instantly.
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Report it. Contact your local police. Also file a complaint with the Federal Trade Commission at ftc.gov/complaint.