Shoppers searching for the perfect holiday gift may choose a gift card as a thoughtful and considerate present. However, the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) advises shoppers to think twice before using prepaid credit cards or gift cards to make payments of any type.
Scammers convince their victims to submit payments via gift cards in many ways. They may set up fake sales listings or other too good to be true offers, contact you demanding payments for an outstanding debt, or threaten disconnection of your utilities.
Fraudsters might even send a check in the mail asking you to put the money in your account, then ask you to send money back via prepaid credit card due to “overpayment.” By the time your bank recognizes the check is fraudulent, your money is long gone.
