A cyber-security platform has come up with a humorous approach to alert Americans about gift card scams ahead of the Christmas season. With its new awareness campaign geared at thwarting scammers' complicated con efforts, Scam Spotter, a platform established by Cybercrime Support Network (CSN) with support from Google, is sounding the warning to consumers ahead of the busy shopping season.
A grandma steals a helicopter and breaks into a jail in a foreign country to set her granddaughter free using gift cards as a bail payment in one Hollywood blockbuster-style dramatization. In another, a man narrowly avoids an armed police raid on his home after paying his tax debt with gift cards over the phone. "Your computer has been hacked," "you've been pre-approved for a loan," and "it's your boss – I need you to buy gift cards ASAP" are among the fraud tactics used in other commercials.
A spokesperson for the Scam Spotter platform said: “This comprehensive campaign highlights the most common gift card scam scenarios in a series of absurd and hyperbolic videos to show that if the stories scammers use sound unbelievable, it’s because they are.”
Scams are more common than many people know, and they've progressed far beyond the unlikely "Nigerian Prince" call, with the fraud industry being worth more than $3.3 billion every year. Scammers feed on people's fears and catch them off guard by using more personal methods of communication, such as a direct message on social media. They accomplish by creating "urgent" situations and instilling terror in their victims, making them feel compelled to act immediately without a chance to think. People are typically overwhelmed with embarrassment after being cheated, and they don't report or talk about it, leaving others vulnerable to fall for the same fraud.
Gift cards have topped the list of reported fraud payment methods every year since 2018, according to the Federal Trade Commission. People reported losing roughly $245 million during that time, with a median individual loss of $840.
Scams involving gift cards target people of all ages. “While baby boomers tend to lose more money per scam on average, younger generations are far from safe, with millennials reporting losses of around $300m in 2020,” said a Scam Spotter spokesperson. In its 2021 Holiday Shopping Forecast, global branded payments provider Blackhawk Network anticipated that gift card spending will rise by 27% this year.
