Consumers need to be aware when paying with gift cards, according to ACCC, with gift cards increasingly being the payment of choice for scammers.
Scamwatch reports more than $5 million was lost in 2018, a 38 per cent increase compared with 2017.
“Scammers like to get gift cards as payment as it’s easy for them to quickly sell them on secondary markets and pocket the cash,” ACCC deputy chair, Delia Rickard, says.
“It’s concerning that the scammers are now demanding payment in other forms of gift cards. This is likely in response to scam warnings about using iTunes cards for paying scammers that are in stores like supermarkets and on the cards themselves.”
iTunes cards accounted for $3.1 million in losses last year, a 156 per cent increase from the $1.23 million in 2017. Losses to scams where non-iTunes gift cards such as Google Play, Amazon or Steam cards, were used as payment increased by 530 per cent in 2018 to around $1 million.
“It’s clear the scammers are diversifying their payments to try get around the warnings, so it’s vital people are aware that no legitimate company or government agency will ever ask you to make a payment with any sort of gift card,” she adds.
There are several types of scams involving gift cards, however, Rickard says if anyone asks for payment using a gift card, it is a scam, simple as that.
“If you paid a scammer with a gift card, report it as soon as possible. Call the company that issued the gift card and tell them the gift card was used in a scam. It’s very difficult to get your money back but the sooner you report it, the better your chances.”
Businesses that sell iTunes, Google Wallet and similar gift cards are encouraged to inform their staff about these scams so that they can help warn customers.
“If staff are informed they can identify the warning signs of a scam when they notice a customer spending large amounts of money on gift cards.”
