Check Twice: Scams from the Naughty List

Gift Card Scams

Gift cards are a staple on everyone’s lists this time of year. However, they’re not just popular with shoppers… they’re popular with scammers. Their ease of use and versatility has launched them to the forefront of various scams. If you ever receive a phone call, email, text message or other communication about gift cards, that should be an immediate red flag.

If you’re reading a message about a gift card you’ve “won” but you never entered to win, it’s a trap. As sweet as a free gift card would be, slow down and think about it. It sounds too good to be true, and it is.

Another tip to keep in mind: technology is evolving, and so are scammers. Artificial Intelligence (AI) enables scammers to create targeted attacks that mimic the appearance of legitimate senders. Scammers often impersonate popular companies like Amazon, Walmart, Apple Store or Google Play. The links they want you to click on to claim your gift card are fake, harmful and part of a cyber attack method known as “phishing.”

Don’t click on ANYTHING in those messages. Delete the message immediately.

Scammers will say whatever it takes to get you to buy gift cards. Once you’ve bought them, they bully or mislead you into sharing the card number and PIN. Scammers often create a sense of urgency to keep you from thinking rationally.

This sense of urgency can also come from forms of impersonation. Scammers will pretend to be loved ones and convince their victims that they need help getting out of a financial situation. When the conversation leads to intimidation, things can get really scary.

If you are talking to someone about something financial and you feel intimidated at all, just hang up. It isn’t rude—it’s your safest option.

  Charity Scams

UNfortunately, the season of giving enables scammers to prey on people’s kindness by creating fake charities. Be on the lookout for copycats. Always double-check the URL and charity name before donating. If something looks a little bit off, it’s probably a scam.

Pro-tip: A great resource for checking the legitimacy of a charity is www.give.org, which is run by the Better Business Bureau.

Crowdfunding sites like GoFundMe are also popular with scammers. A few bad apples sometimes sneak their way through these sites with fake stories, laughing their way to the bank as they cash in on other’s goodwill. If you don’t personally know the person whom the crowdfunding is for, pause until you can verify their identity.

Let’s bring it back to gift cards. Many charity scams also utilize gift cards. Don’t donate to anyone who insists you pay only by gift card, cash, money wires or cryptocurrency. If you are donating to a charity and they insist on any method of payment besides a credit or debit card, this is a red flag.

Make a List, Check it Twice

These UNjolly scammers aren’t always creative. Beyond the gift cards and fake charities, some scammers will simply pretend to be a financial institution to gain access to your account.

They target victims by asking them to “confirm” account details in full or ask them to verify a one-time passcode they then use to take over the account. When in doubt, hang up and call the main line of your trusted financial institution. They can verify the legitimacy of the request and will not be offended if you did hang up on them. It’s better to be safe than scammed.

The biggest lesson to remember when protecting yourself from these holiday scams: never give anyone a gift card or large amount of cash via phone or online.

Don’t let undercover grinches ruin your holiday spirit. If you’re UNsure if you’re facing a potential scam, don’t hesitate to reach out to our highly skilled, fraud-fighting team of UNbankers. Give us a call at (515) 334-8100.

Equal Opportunity
Community Choice Credit Union does not discriminate in employment opportunities or practices because of age, race, color, religion, sex, sexual orientation, gender identity, gender expression, pregnancy, marital status, domestic partner status, military status, veteran status, national origin, disability, genetic information, or any other status protected by applicable federal, state, or local law.