Gift card, crypto and Bitcoin ATM payment scams
Whatever the story, they insist you pay with gift cards, crypto, a Bitcoin ATM, a wire transfer or cash.
Could you spot it?
2 quick examples. Decide scam or legit for each.
How it works
The story changes, but the ending doesn't. A government agent, a utility, a boss, a “bank investigator” or a new online friend tells you to buy gift cards and read them the numbers, feed cash into a Bitcoin ATM and scan their QR code, or wire money.
These methods are fast and very hard to reverse. That's why scammers insist on them, and why no legitimate business or agency demands them.
Red flags
- Any request to pay with gift cards, crypto, a Bitcoin ATM, a wire or cash.
- Being told what to say if the cashier asks what the gift cards are for.
- Being asked to read the gift card numbers aloud or send photos of them.
- Staying on the phone with someone while you buy the cards or use the ATM.
What it looks like
A caller says they're working with your bank on a fraud case involving your account.
Caller: We're working with your bank to catch the employee who's been stealing from your account. We need your help to trap them.
Caller: Go to the store and buy $2,000 in gift cards. If the cashier asks what they're for, say they're gifts for your grandchildren.
Caller: Then scratch off the backs and read me the numbers so we can trace the transaction.
The tells:
- Buying gift cards to “help an investigation”.
- A cover story for the cashier, who might otherwise stop the scam.
- Reading the numbers aloud hands them the money instantly.
A training example written for this site. Names, numbers and links are made up, and links are disabled.
What to do
- Stop. Only scammers ask for payment like this.
- If you already paid, contact the gift card company or your bank right away and report it at ReportFraud.ftc.gov.
If you already paid or shared information
- Contact the company you used to pay (your bank, card company, gift card company, payment app or wire service) right away and ask them to reverse the payment.
- If you shared a password, change it now and turn on two-factor authentication.
- If you gave out your Social Security number or other ID details, go to IdentityTheft.gov for a recovery plan.
- Report it to the FTC at ReportFraud.ftc.gov. For scams that happened online, you can also report to the FBI at ic3.gov.
From FTC: What to do if you were scammed.
Latest alerts about this scam
- FTC ·A way to spot scams: how someone asks you to pay
Let’s say someone contacts you unexpectedly and says you have to pay to fix a problem, get a prize, or something else. But then they say the only way to pay is by bank transfer, wire transfer, gift card or crypto.
Sources
- FTC: Avoiding and reporting gift card scams
- FTC: The way to spot scams: how someone asks you to pay
- FTC: Did someone send you to a Bitcoin ATM? It's a scam
Related scams
Romance scams
An online sweetheart you've never met in person needs money, or wants to teach you to invest.
“Wrong number” texts and crypto tips
A friendly text “to the wrong number” turns into a friendship, then an investment tip.
Job offer texts and task scams
An unsolicited job offer for easy online “tasks” that ends with you depositing money to unlock your earnings.