Gift Card Scam Alert: Fake Utility Bills Are Draining Wallets Fast

It starts with a call or urgent text. The person on the line claims they’re from your local electric, gas, or water provider. They say you’re behind on payments and if you don’t act fast, your service will be disconnected. But instead of requesting a card payment or online transfer, they tell you to pay with a gift card.

This is the updated face of the gift card scam. While utility bill scams have existed for years, scammers now request gift cards instead of credit card details. Why? Because gift cards are fast, anonymous, and nearly impossible to trace or recover once used.

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How the Gift Card Scam Works

These scams often begin with an automated call, but some arrive by email or text. The message is urgent – your power or gas will be shut off unless you pay right away. To make it believable scammers spoof real utility company phone numbers and even copy logos and language from actual bills.

They then instruct you to go to a nearby store and buy a gift card often for Amazon, Apple, or Google Play. Once you’ve made the purchase, they demand that you read the code on the back over the phone. As soon as you do, your money is gone.

The gift card scam works because many victims panic as the idea of losing electricity or heat can override logic, especially if the scammer is aggressive or threatening.

Why Gift Cards?

A gift card is like cash to scammers. Unlike wire transfers, there are no banking systems to flag suspicious activity. Once they have the card number and PIN, they can either use the funds themselves or resell the card on black market websites.

Who Are the Victims?

This gift card scam often targets the elderly, non-native English speakers, and busy parents who don’t want to risk disconnection. Some scammers even use automated messages in Spanish or other languages to widen their net.

According to the Federal Trade Commission, victims reported over $228 million in losses to gift card scams in 2023, often linked to imposter calls pretending to be from government or utility companies.

Red Flags of a Gift Card Scam

The caller insists you pay with a gift card and they don’t accept any other payment options.
They threaten immediate disconnection or arrest.
You are told to go to a specific store to buy the card.
You’re asked to read the card code over the phone or enter it into a website.

How to Protect Yourself

Real utility companies never ask for gift card payments.
Always hang up and call the utility company directly using the number on your actual bill.
Report the scam to the FTC and notify the store where you bought the gift card. They may be able to freeze unused funds.
Warn friends, family, and elderly relatives about this type of scam.

Final Thoughts

The gift card scam preys on panic. By the time victims realize what’s happening, it’s often too late. If someone tells you to settle a bill or pay a fine with a gift card, it’s a scam, every time. Stay calm, double-check the source, and never give out card codes to anyone who contacts you unexpectedly.

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