Gift cards used to be a safe, easy gift or payment option, but unfortunately, crooks have figured out how to scam you out of your gift card money. Reports of gift-card related elder fraud and scams targeting seniors have become one of the most common – and risky – senior scams, and the Federal Trade Commission (FTC) says gift card monetary losses now top hundreds of millions annually.
GoGoGrandparent’s number one goal is to keep older adults safe – and that includes financial safety. The more we talk openly about senior scams and the sneaky psychology behind them, the harder it becomes for elder fraud to occur.
Keep reading to learn exactly how criminals are pulling off these gift card cons, red flags to watch for, and step-by-step actions you and your loved ones can take right now for senior scam prevention.
Why Are Scams Targeting Seniors and Gift Cards?
Scammers love gift cards because the money moves instantly, anonymously, and – once spent – can be nearly impossible to recover. When swindlers commit elder fraud, they’re looking for three things: speed, stealth, and certainty. Gift cards check every box, which is why the FTC now says they outrank every other payment method in fraud reports, with over $118 million in losses annually.
Here are some of the reasons con artists are using gift cards to commit elder fraud:
- Instant, irreversible cash out: The moment a thief has the 16-digit code and PIN from a gift card, they can drain the balance online or through a robo-app. Unlike a bank transfer or credit card charge, there’s no built-in dispute process or “undo” button.
- No banking oversight: Credit card processors flag bizarre spending patterns and most banks file Suspicious Activity Reports. But gift card systems lack those anti-money-laundering guardrails, so criminals can fly under the radar.
- Anonymity: Gift cards don’t tie to a name, address, or bank account, so scammers can convert balances into resale codes, cryptocurrency, or high-value goods that can be flipped for cash – all without leaving a paper trail.
- Easy to buy: Big box stores, pharmacies, and even gas stations sell racks of gift cards with few purchase limits. Scammers coach their victims to purchase cards from multiple stores, so cashiers don’t notice the red flags.
- Easy to use: Target, Google Play, Apple, eBay, and Walmart are at the top of scammer wish lists because balances can be spent or resold worldwide within minutes.
- Little to no recourse: Card issuers aren’t legally required to refund balances, and many won’t – especially if the funds were already spent. This weak consumer protection makes gift card fraud a low-risk, high-reward crime for criminals.
The Newest Tricks in the Fraudster Playbook
Below are some of the common scams targeting seniors that you should be aware of, according to the FTC.
1. Scratch and Steal Before Buying
A newer threat involves “gift card-skimming” off the rack. A scammer will walk into a store like CVS or Target and scratch off the gift card numbers and PINs. They’ll take a photograph of the numbers, reseal the packaging, and then go home and wait. Once a well-meaning shopper or gift recipient purchases the gift card, an automated bot drains the card’s value within seconds.
To prevent this from happening, always inspect your gift cards before buying. Look for:
- Scratched or bubbled security stickers
- Misaligned scratch-off panels
- Re-sealed cardboard edges
2. Impostor and Authority Senior Scams
In this con, the scammer calls your landline or cell phone pretending to be the IRS, Social Security, Medicare, the utility company, or even the FTC itself. They claim you owe fees, your benefits are at risk, or your power will be cut unless you pay right now – usually with gift cards or a wire transfer. They’ll even use caller ID spoofing and official-sounding jargon to create urgency and fear.
If you get a call from an “authority,” here’s what you should always do before taking out your wallet:
- Hang up the phone without giving them any information.
- Look up the real phone number of who the caller was claiming to be. Find the number online, in the phonebook, or on a bill or statement you received directly from the company.
- Call the agency back on that phone number to ask if the call you received was legitimate or fraudulent.
- Keep in mind: NO government office accepts payment by gift card. That demand alone screams elder fraud.
3. Grandparent & Family-Emergency Scams
A scammer will call your phone number and pretend to be a loved one in trouble. For example, they may say, “Grandma, I’m in jail – don’t tell Mom. I need bail money.” Fraudsters will even look at your and your family’s social media to find details that make the call sound more convincing. They’ll then rush victims into gift-card or cash-courier payments. This works by preying on your love for your family and instilling panic, which overrides any skepticism.
Before doing anything, hang up and call that family member directly. For example, if someone said they were your grandson, call your grandson’s phone directly to verify. If he doesn’t pick up, call his siblings or parents – even if the person on the phone told you not to. These kinds of “pause-and-verify” habits form bulletproof senior scam prevention.
Another fantastic way to prevent this kind of scam is to agree on a family password with all your loved ones. For example, maybe you all agree that the word, “pineapple” or “hippo” is a word that you use only when you’re in trouble or need aid.
4. Sweepstakes, Prize, and Lottery Scams
You get a phone call saying you’ve won a new car or cash, but you must first pay taxes, shipping fees, or insurance – and they’ll often want you to pay with an untraceable gift card. After you give them the gift card number, the prize never arrives. This type of elder fraud works well for scammers because the thrill of winning often masks the red flags of the scam.
Keep in mind that real sweepstakes are usually free to enter and free to win. If you’re being asked to pay, especially with a gift card, it’s almost guaranteed elder fraud.
5. Romance & Catfishing Cons
Loneliness and the desire for connection encourage many seniors to look for love or friendship online. A charming online suitor – often using fake names and pictures – builds trust, then asks for money or gift cards for medical bills, travel visas, or cryptocurrency investments. They will try to build rapport with their victims in order to make them feel comfortable enough to send them money. To prevent this kind of scam targeting seniors, refuse all money requests from someone you’ve never met in person. When in doubt, ask a trusted loved one for advice.
6. Other Senior Scams
Those senior scams listed above are the most common for gift card fraud, but there are also other scams to be aware of that may include gift cards or other forms of payment, such as:
- Charity scams: Scammers will play on your generosity with emotional photos or urgent pleas – often right after a natural disaster – to encourage charity donations via gift card or crypto. When giving to a charity or nonprofit, use sites like CharityNavigator.org or donate directly through an organization’s official web page.
- Tech support scams: A fake “Microsoft” or “Apple” pop-up says your computer is infected with a virus. You’re told to call a toll-free number, pay for a security subscription, or hand over remote access to your computer. If this happens, shut the laptop and get a second opinion from an in-person technician from a trusted local shop. Pop-ups demanding calls are almost always scams targeting seniors.
- Medicare and health insurance fraud: Scam callers will offer free genetic tests, braces, medical equipment, or COVID kits if you share your Medicare number with them. They’ll then use your Medicare number to submit false bills – and you’ll receive no or poor products. To prevent this scam, know that Medicare will never call unsolicited. Guard your Medicare number like you would a credit card or social security number to help prevent scams targeting seniors.
- Contractor rip-offs: Someone comes to your house recommending or demanding you update your roof, foundation, landscaping, or other part of your home. This is especially common after a storm or natural disaster, as urgency after weather damage breeds hasty decisions. They’ll demand large deposits and then disappear with your money. Before hiring any contractor, verify licenses, insist on written contracts, and never pay in full upfront. Local, trusted references like those through GoGo Home Services are gold for senior scam prevention.
- Recovery scams: After you’ve lost money through another of these scams, a “company” will call and say they can help you recover your money… for a fee. This is a scam on top of a scam. Recovery services that charge upfront are themselves elder fraud, so ignore and report them immediately.
Senior Scam Red Flags You Should Never Ignore
Regardless of the flavor – imposter, tech support, romance, or prize – the scam cycle is the same: create urgency, isolate the victim, demand an unusual payment (like gift cards), and then vanish. Recognizing this pattern is the best form of senior scam prevention. Here are some red flags of senior scams to never ignore:
- Secrecy and speed: They’ll say, “Don’t hang up” or “Keep this confidential.” That isolation tactic is a hallmark of senior scams.
- Threaten consequences: “Pay now or lose your benefits,” “Your computer will be locked,” or “You’ll be arrested.” Fear equals profit for scams targeting seniors.
- “Buy a gift card, read me the numbers”: No legitimate company or agency will ever ask for payment with a gift card.
- Spoofed business: Technology makes it easy for scammers to fake caller ID so it looks like the call is from a real business. Always do your own research before handing over any money.
How to Prevent Gift Card Senior Scams
1. Purchasing a Gift Card
When purchasing a gift card, always do the following before checkout:
- Inspect the packaging. Torn cardboard or exposed PIN? Pick another card. Tampering is a sign of elder fraud.
- Choose cards kept behind the counter. Fewer hands equals fewer scammers.
- Save the receipt and snap a photo of the card. Proof is power if you have to dispute charges later.
These tiny habits form a practical shield against scams targeting seniors.
2. The “Stop, Verify, Report” Plan
If anyone – online, on the phone, or at your front door – demands gift-card payment:
- Stop. End the conversation immediately. Remember: only scammers tell you to buy a gift card to pay them.
- Verify. Call the real business, government agency, or family member on a number you trust, not the one provided by the caller. This alone prevents countless instances of elder fraud every day.
- Report. Tell your caregiver, adult children, or a friend about the call, then file a complaint at ReportFraud.ftc.gov. By reporting, you’re helping to create a safer world with fewer senior scams.
3. Tech Tools That Help
- Phone call blockers silence robocalls linked to scams targeting seniors. Go to your trusted phone provider like Verizon or AT&T to have a call blocker installed.
- Computer ad blockers help minimize viruses and pop-up scams. Work with a trusted computer provider through Apple or Microsoft to have this installed on your computer.
4. Checklist for the Refrigerator Door
Put a senior scam prevention list on your fridge door to help you respond effectively to suspicious calls or situations. Here are some reminders to include on the checklist:
- I will never pay a government or utility fee with a gift card.
- I will hang up if pressured to pay or buy gift cards urgently.
- I will call a family member or caregiver before acting.
- I will photograph all gift cards and keep the receipt.
- I will use a credit card whenever possible, which has built-in protections.
- I will report any suspicious requests to the FTC.
Reading this list aloud once a week can dramatically cut down on senior scams and elder fraud.
From the Caregiver Perspective
As a caregiver, you love your parents or older family members, so you may also want to take steps in senior scam prevention. First, it’s important to understand why seniors are targeted most frequently:
- Comfort with phone conversations: While younger generations are less comfortable with phone calls, for many seniors, landline outreach still feels comfortable and credible.
- Desire to be polite: Hanging up seems rude, so pressure tactics may work more often on kind, older adults.
- Large nest eggs: Criminals assume retirees can access quick cash.
Discussing money safety with your parents can feel awkward, but a five-minute chat today is much easier than trying to recoup hundreds or thousands of dollars tomorrow. Simple, judgment-free questions normalize conversations about senior scams, spotlight potential scams targeting seniors, and build a team mindset for senior scam prevention.
Below are some ways to start the conversation with your loved ones:
- “Have you ever been asked to pay a bill with a gift card?”
- “Let’s walk through what we’d do if someone called demanding payment.
- “If anything sounds suspicious, please call me before you pay.”
- “If anyone tells you to pay with a gift card, it’s a scam. Hang up and call me.”
You can also post a script or checklist (like the one above) by the phone or on the fridge to help remind your loved one about senior scams.
What If the Money is Already Gone?
Hope is not lost. The FTC recommends three rapid steps if you’ve been a victim of gift card elder fraud:
- Contact the gift card company immediately. Ask them to freeze the funds and start a refund process.
- Save every receipt, email, or text. Evidence accelerates reimbursement and arrests.
- File an FTC report. Your story helps fight future senior scams.
While recovery isn’t guaranteed, quick action has returned millions to victims of elder fraud.
Senior Scam Prevention: Turning Awareness into Action
Gift cards still have a place for birthdays and holidays – but they should never be used to pay taxes, settle utility bills, rescue a stranded relative, or fix a hacked computer. The next time someone insists otherwise, remember these three truths:
- Genuine businesses do not demand you pay with a gift card.
- Urgency and secrecy = senior scam.
- Talking about elder fraud out loud is the strongest form of senior scam prevention.
The bad guys evolve, but an informed community evolves faster. Keep sharing and keep talking. Send this article to neighbors, book-club buddies, church groups, and caregivers. And if you ever feel pressured, pause and phone a friend. Together, we can stop scams targeting seniors to keep the people we love safe.
