Great Lakes Wire

Michigan Attorney General Dana Nessel has reissued a consumer alert titled "Paying with a Gift Card" as part of her Holiday Scams Campaign. The alert aims to raise awareness about gift card scams, which have become increasingly common and costly. According to a Federal Trade Commission (FTC) report, consumers reported $217 million in gift card-related fraud in 2023.

Nessel emphasized the importance of being informed and cautious, stating, “Gift cards are a convenient and popular gift option, but they’ve also become a favorite tool for scammers. Education and vigilance are key to combatting gift card fraud. Stay informed and report suspicious activity to help protect yourself and your loved ones from these schemes.”

The scam typically involves victims receiving communications from individuals posing as representatives of government agencies, utility companies, tech support services, or even acquaintances in distress. These messages demand immediate payment via gift cards. Once scammers acquire the gift card number and PIN, recovering the funds becomes nearly impossible.

Scammers may impersonate officials from entities such as:

- Government Agencies: Impersonators claim to be IRS or Social Security Administration officials demanding back taxes or fines.

- Tech Support: Fraudsters pose as Apple or Microsoft representatives claiming computer issues.

- Family or Friends in Emergencies: Using AI technology, scammers imitate loved ones needing urgent assistance.

- Sweepstakes or Prizes: Victims are told they've won prizes but must pay fees with a gift card.

- Utility Companies: Imposters threaten service shutoffs unless paid with a gift card.

- Romantic Scams: Scammers on dating sites persuade victims to send financial aid via gift cards.

- Fake Overpayments: Victims receive counterfeit checks overpaying them and are asked to refund the difference using gift cards.

For those who have already shared their gift card information with scammers, it is advised to:

1. Report the scam immediately to the gift card issuer like Amazon or Walmart.

2. Request a refund from the issuer while explaining the situation; refunds aren't guaranteed but efforts against fraud are increasing.

3. File reports with both the FTC and Michigan's Attorney General’s Consumer Protection Team.

To prevent falling victim to such scams:

- Avoid using gift cards for debt payments; they should not be used for bills or fines.

- Be wary of urgent payment requests; legitimate organizations won't pressure you into quick actions.

- Independently verify any claims by contacting companies directly through verified contact details.

- Exercise caution when sharing details online or over the phone unless certain of recipient legitimacy.

For further assistance on reporting frauds or general consumer complaints, contact can be made through:

Consumer Protection Team

P.O. Box 30213

Lansing, MI 48909

517-335-7599

Fax: 517-241-3771

Toll-free: 877-765-8388