February 24, 2024

Sandy Harjo-Livingston and Kristine Uyeno

1 month ago

HONOLULU (KHON2) — Many criminals are using the gift card scam to lure victims, and more people are falling for it.

Joining KHON2 with more on this scam and what a new report has to say about it is Roseann Freitas with the Better Business Bureau.

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According to Freitas, the BBB has updated its 2021 Credit Card Scam Report.

In the update, they discovered that there has been a 50% increase in gift cards being used as a form of payment.

Some of the key findings from this report include:

  • Advance fee loans, government impersonation, phishing and lottery/sweepstakes top the list of scam types used most often to obtain gift cards.
  • Scammers frequently seek gift cards from big-box, technology and online stores.
  • Retailers are fighting back: Technology, like algorithms meant to detect fraudulent behavior, helps retailers stop scammers in their tracks and sometimes return money to customers.

Consumers need to be wary of anyone asking for payment with a gift card. This includes “government” agencies. There are no legitimate government organization that will ask you to pay with a gift card.

If you suspect a scam, contact the gift card seller, the actual business or government organization supposedly asking for money and BBB to ask if you are dealing with a scammer.

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