Someone Asked You to Pay With Gift Cards? It's a Scam

If anyone tells you to pay a bill with gift cards, it's a scam. The IRS says it never asks for or accepts gift cards for tax bills, and the Canada Revenue Agency says it will never demand gift card payments. Hang up, don't share any card numbers, and if you already paid, call the card company right away. The faster you act, the better your chance of recovering the money.

Does the IRS or CRA ever accept gift cards?

No. Neither agency takes gift cards, and neither does any other real government agency or business. The FTC puts it plainly: no real business or government agency will ever tell you to buy a gift card to pay them.

What the IRS says

• The IRS never asks for or accepts gift cards as payment for a tax bill.
• The IRS normally contacts you the first time by mail, delivered by the US Postal Service.
• The IRS won't call to demand immediate payment using a specific method such as a gift card, prepaid debit card or wire transfer.

What the CRA says

• The CRA will never demand or pressure you into immediate payment by Interac e-Transfer, cryptocurrency, prepaid credit cards or gift cards.
• The CRA will never threaten to arrest or deport you, or put you in prison.
• The CRA says it won't use text messages or instant messaging such as Facebook Messenger or WhatsApp. The only texts it sends are sign-in security codes, and only if you chose the phone option.

Who else asks for payment in gift cards?

Gift card demands come from many kinds of impostors. The FTC lists these common ones:

• People posing as government agencies, including the IRS, the Social Security Administration and even the FTC
• Fake tech support claiming to be from Microsoft or Apple
• Callers claiming to be from your utility company and threatening to cut off service
• Someone posing as a friend or family member in trouble, sometimes using a cloned voice
• Romance scammers you met online
• Prize or sweepstakes scams that ask for money before you can collect

The FTC has also warned about messages that appear to come from your boss asking you to buy gift cards. In Canada, the Office of Consumer Affairs says Government of Canada organizations, like the CRA and Immigration, Refugees and Citizenship Canada (IRCC), will never request immediate payment in retailer gift cards.

What are the warning signs of a gift card scam?

• You're told to pay right now, or face arrest, deportation, a lawsuit or a service cut-off.
• You're told to keep it secret, or to give the cashier a different reason for buying the cards. TD Canada Trust notes that a real bank would never ask you to keep secrets.
• You're asked to read the card number and PIN over the phone, or to send a photo of the back of the card.
• The caller ID shows a real agency or bank name. Numbers can be faked, which is why the CRA advises ending a suspicious call and calling an official number you find yourself.

If a card you bought was emptied without anyone contacting you, that's a different problem. See our guide to the gift card draining scam.

What should I do if someone is asking me right now?

1. Stop and hang up, or stop replying. You don't owe the caller an explanation.
2. Don't buy any gift cards. If you already bought them, don't share the numbers or PIN.
3. Check the claim yourself. In the US, type irs.gov into your browser to find the IRS's contact options. In Canada, find an official CRA phone number on canada.ca and call it yourself.
4. Talk to someone you trust before you do anything else.
5. Report the contact, even if you didn't pay. See the table below.

What to do if you already paid with gift cards

Call the company that issued the gift card immediately. The FTC says the faster you report a gift card scam, the better the chance of getting your money back.

1. Call the gift card company using the phone number on the back of the card or its packaging. For Vanilla gift cards, the number is 1-833-322-6760.
2. Tell them you were scammed, and give them the information from your receipt and the numbers on the gift card.
3. Ask for your money back. The FTC says some gift card companies may be able to flag the fraud and freeze stolen funds.
4. Keep every card and receipt, even for cards that are already empty.
5. Report the scam to the government, using the table below.
6. If you gave the scammer personal details such as your Social Security number or bank information, the IRS points victims to its Identity Theft Central page on irs.gov. Contact your bank too.

Our gift card guides explain where to find the official contact details for popular brands, including Apple, Google Play and Vanilla Visa gift cards.

Where do I report a gift card scam in the US and Canada?

You can file with the FTC at ReportFraud.ftc.gov and with the Canadian Anti-Fraud Centre at reportcyberandfraud.canada.ca. The Anti-Fraud Centre's phone line is open Monday to Friday, 10 am to 4:45 pm Eastern time.

Why do scammers want gift cards?

Because once they have the card number and PIN, they can spend the balance without ever holding the card, and they don't have to give you their name or bank details. Canada's Office of Consumer Affairs notes that gift cards offer little protection as a form of payment. That's why anyone who insists on gift cards, and nothing else, is a scammer. The same pressure tactics show up in fake calls about new cards; see our guide to card activation call and text scams.