Individuals misplaced $148 million to reward card scams this yr

The US Federal Commerce Fee (FTC) stated Individuals reported dropping $148 million to reward card scams in the course of the first 9 months of 2021, following a big improve in comparison with final yr.

Nearly 40,000 customers reported falling sufferer to scams the place reward playing cards have been the chosen type of cost all year long.

The $148 million misplaced to scammers till the tip of September 2021 quantities to greater than the entire losses reported in 2020.

Any such rip-off funds has elevated yearly over the last three years, now reaching staggering numbers each within the variety of reviews and the entire quantity of losses.

“Since 2018, each the numbers of customers submitting reviews by which reward playing cards have been the type of cost to scammers and the quantity they’ve reported misplaced have elevated steadily,” the FTC stated.

“The FTC has sources for customers, together with data on how you can contact reward card firms to attempt to cease funds to scammers at ftc.gov/giftcards.”

Goal reward playing cards, a scammer’s best choice

Whereas Google Play, Apple, eBay, and Walmart reward playing cards have remained standard choices for scammers, they now switched to asking for Goal reward playing cards which are actually their hottest selection.

“Most reward card scams begin with a telephone name from somebody impersonating a department of the federal government just like the Social Safety Administration, or a enterprise,” the US authorities company added.

“The caller may threaten to freeze your checking account and inform you that you need to purchase reward playing cards to keep away from arrest or to maintain entry to your cash in your checking account.”

Crucial factor to recollect in case you do not wish to fall sufferer to a present card rip-off is that reward playing cards are meant for use to get items, NOT to make funds.

If somebody calling from a authorities company or a financial institution says it’s important to pay taxes to keep away from arrest or repay an unknown debt to maintain entry to your checking account, they’re all the time a scammer.