Division of Financial Institutions Warns Consumers About Holiday Gift Card Scams

COLUMBUS, Ohio - As Ohioans search for the perfect gifts this holiday season, it is likely many individuals will choose to purchase gift cards to give to family and loved ones. According to the National Retail Federation's 2024 Holiday Consumer Survey, approximately 44% of consumers expect to give a gift card as a present this season, making it the second most-popular category behind only clothing at 54%.

If gift cards are on your shopping list, the Ohio Department of Commerce Division of Financial Institutions (DFI)reminds you to take steps to ensure you protect yourself from gift card scams, which are becoming more popular.

Scammers take advantage of this time of year by posing as legitimate businesses or government agencies and pressuring unsuspecting victims to make payments via gift cards. According to recent data from the Federal Trade Commission (FTC), Americans lost nearly $217 million to gift card scams last year alone.

"Unfortunately, there are bad actors who attempt to take advantage of people during the holiday season," said DFI Superintendent Kevin Allard. "Some of these scams can be difficult to detect, which is why it's important to remain aware and alert to ensure you keep yourself financially protected."

With the growth of online shopping and digital transactions, understanding and recognizing the tactics of fraudsters is more critical than ever. DFI offers the following tips to help ensure Ohioans stay safe from scammers this holiday season.

Gift Card Safety Tips

• Only purchase gift cards from reputable sources, such as a restaurant or store itself or a larger chain that offers gift cards, such as popular grocery stores or drug stores.
• Always inspect gift cards before purchasing them to ensure the card itself nor its packaging have been bent or altered in any way.
• Avoid purchasing gift cards from a third-party sources, such as online auctions, since it may be difficult to verify whether those cards still contain all or any funds.
• Maintain copies of receipts since those can be helpful in the event a scam occurs.

Common Gift Card Scam Scenarios

• Government imposters claiming you owe taxes or fines.
• Tech support scammers insisting you pay to fix a non-existent issue with your computer.
• Romance scams, where fake online relationships are used to withdraw money.
• Fake prize claims, requiring initial fees to claim winnings.

Remember, legitimate businesses and government agencies will never demand payment via gift cards. In addition to insisting payment be made via gift card, scammers often insist that payment be made immediately to avoid a penalty or loss of service. Be sure to slow down and verify their claims before acting.

If you believe you've been the victim of gift card fraud, be sure to report it immediately to the gift card company and ask if a refund can be issued. In addition, victims should report gift card fraud to the Federal Trade Commission at ReportFraud.ftc.gov.

For further guidance on how to stay safe this holiday season, Ohio consumers are encouraged to check with the Ohio DFI Office of Consumer Affairs.

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About the Ohio Division of Financial Institutions
The Division of Financial Institutionsis part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at www.com.ohio.gov.