Michigan's Attorney General Dana Nessel is sending out a warning as holiday cheer ramps up, as do the less joyful holiday scams, specifically those involving gift cards. According to a report from the Federal Trade Commission, consumers reported a staggering $217 million in gift card-related fraud in 2023, as per the Michigan Department of Attorney General.
These scams, Nessel warns, have an MO as predictable as holiday tunes on a loop. The scammer might call, email, or text, claiming to be from any of several government agencies, utility companies, or friends and family in dire straits. Their common thread is an urgent demand for gift card payments – a dead giveaway. For instance, no legitimate government entity, such as the IRS or Social Security Administration, will request immediate payment via gift cards, Nessel explains. This type of payment isn't only unexpected but is nearly impossible to trace once the gift card numbers and PINs are in the wrong hands.
From tech support frauds to emotional appeals on dating sites, these scammers exploit every angle. They could clone the voices of loved ones or invent fees for non-existent prizes. If unwary consumers fall prey and end up sharing their gift card details, Nessel advises contacting the gift card issuer immediately, even though some, like Amazon and Walmart, may help in fund recovery. The next steps should include seeking a refund and reporting the incident to the FTC and the Attorney General's Consumer Protection Team.
To sidestep these holiday spoilsports, consumers should remember that gift cards are for gifts, not for paying off debts or fines. They should be wary of urgent requests for money and always verify the legitimacy of such claims independently. When in doubt, don't hesitate to reach out directly to the entities involved using contact information you've confirmed is correct. For those needing to report fraud or file a general consumer complaint, the Attorney General's Consumer Protection Team is available for contact through multiple channels.
