Gift Card Scams at Christmas: How to Check a Card Before You Buy

Why gift cards are popular

NRF's annual holiday survey found in October 2025 that gift cards topped the list of items shoppers want to receive, with 50% naming them, ahead of clothing or accessories at 46% and books and other media at 27%. A card avoids the risk of the wrong size and works as a last-minute fix. The same convenience that makes them useful as gifts makes them useful to criminals, who prefer payment methods that are hard to trace and reverse.

Inspect the card before you buy: spotting gift card tampering

The FTC's advice for shoppers is practical:

• Stick to stores you know and trust. Avoid online auction sites, where cards may be fake or stolen.
• Look at the card on the rack. Protective stickers should be in place and not look disturbed, and the PIN on the back should not be showing. If it is, choose another card, and tell a cashier or manager about the tampered one.
• Keep a copy of the card and the receipt. Take photos of the front, the back and the receipt with your phone. The numbers help you report a problem or ask for a refund if the card is lost or turns out to be empty.

Give the recipient the receipt along with the card when it is a large amount, or at least tell them where to find it.

What federal rules protect: gift card expiration law

Gift cards sold in the U.S. fall under federal rules that limit expiration and fees. In general, the money on a store gift card or general-use prepaid card must remain usable for at least five years from the date it was purchased or last loaded. Dormancy or inactivity fees cannot be charged until the card has gone unused for 12 months, and the card must disclose the fee clearly. Exceptions exist, such as for promotional cards and cards that are not reloadable and that are marketed as for a specific event, so read the packaging. Open-loop cards (the kind branded by a card network that can be used almost anywhere) often carry a purchase fee printed on the package, and that fee is not part of the card's value.

The practical lesson: tell recipients to use the card within the year, check the balance after a few weeks, and save the receipt.

The FTC gift card scams to watch for

The FTC states plainly that only scammers will ask you to buy a gift card and read them the numbers. No real business or government agency will tell you to pay with a gift card. Common stories include:

• A caller or message claiming to be from a government agency, saying you owe taxes or a fine.
• A "tech support" message, asking you to pay to fix a computer problem.
• A friend or family member in trouble, possibly with a cloned voice, asking for money urgently and telling you to keep it secret.
• A prize that requires a "fee," paid by gift card.
• A utility that threatens to cut service unless you pay immediately.
• An overpayment check with a request to return the difference as a card.

Scammers push urgency, specify which store and brand to buy, and ask for the number and PIN. If someone does this, hang up, and tell someone you trust. If a message claims to come from someone you know, contact them using a number you already have.

What to do if you were scammed with a gift card

The FTC says to report to the gift card company at once, no matter how long ago, using the contact details for that issuer. Ask for your money back, because some companies freeze funds that remain on the card. Keep the card and the receipt, and report the scam to the FTC at ReportFraud.ftc.gov. Every report helps investigators spot patterns.

Making a gift card feel like a gift

A card can feel impersonal, but a little thought changes that. Choose a store the recipient actually mentions, add a short handwritten note and attach an idea: "for the coffee shop near your office" or "for the next new release." Pair a small card with a small physical gift from our stocking stuffers under $10 list. For teachers, coaches and other helpers, see our teacher gift guide for notes on what is appropriate and what school rules may allow.

If you need a present in a hurry, our last-minute gift guide and our story on last-minute Christmas gifts that arrive fast show which cards and digital gifts can be delivered by email in minutes. For a card sized to a budget, see the gifts under $25 guide.