The season that welcomes scammers

The holidays are meant to be a time of generosity and few gifts are as convenient as a gift card. As the festive season ramps up, so does scam activity. According to the IRS, gift-card scams are particularly prevalent this time of year, when scammers capitalize on people’s goodwill, generosity and sometimes financial stress.

The draw is obvious: gift cards are easy to buy, easy to transfer and often treated like cash, which makes them ideal for scam artists. As the agency warns in their recent tax tip, “Thieves are always changing their tactics.” Gift card scams, fake charities, bogus delivery notices, and other frauds surge during the holiday shopping and donation season.

How gift card scams work

Scammers use different tactics, but many follow a similar playbook:

• Fake government or authority impersonation. One of the most devious scams involves fraudsters posing as agents of the IRS or other authorities, contacting victims by phone, email or text, claiming they owe taxes or fines. Then they demand payment in gift cards or threaten with dire consequences if the payment isn’t made immediately. 
• Fake requests from “friends, family or coworkers.” Scammers often hijack an email account or spoof a known contact. They may send messages asking for urgent help, requesting you to buy gift cards and send them the code, claiming it’s for an emergency. This relies on your trust, especially during a time of year when people are more inclined to help.
• Bogus billing or collections threats. Scammers might claim you owe a debt, tax penalty or some fine. They pressure you to fix it quickly by purchasing gift cards at various retailers or different stores to avoid detection and then giving them the card numbers. Once they have them, the funds vanish.
• Fake charities or donation requests. The holiday season often encourages charitable giving and scammers exploit that. They may set up fake charities, donation pages, or appeals and then request payment via gift cards. Once you provide the card code, the money disappears.

Because gift cards are essentially like cash once redeemed, scammers rarely need elaborate schemes; they just need a convincing message and a sense of urgency.

The scope of the problem

Fraud is widespread and the holiday season dramatically amplifies the danger. Gift card scams are among the top threats during holidays, along with fake shipping alerts and phony online shopping offers.

The IRS echoes this urgency. In IRS Tax Tip 2025-69, the agency highlights that past campaigns have involved phishing emails, compromised accounts, and social-media or phone-based government impersonation scams. 

In short, the appeal of gift cards, the chaos of holiday shopping, and the emotional triggers of generosity or fear (especially around debts or penalties) all contribute to the flourishing of scams of this nature.

Who’s vulnerable and why

Almost anyone can fall for a gift-card scam, but certain circumstances make people especially vulnerable during the holidays:

• People under financial pressure often react quickly to urgent requests or threats of fines.
• Those who are stressed, busy or distracted by other holiday responsibilities have less time to scrutinize messages carefully.
• Individuals who want to help friends or family in an emergency may overlook warning signs in a panic.
• Older adults or those less comfortable with technology, who may be less likely to question government-looking emails, texts or calls demanding gift-card payments. 

The scammers don’t just prey on naivety or generosity; they prey on emotion and sudden pressure.

How to protect yourself  

The good news: many gift-card scams can be avoided with simple precautions. Here are some steps to keep your holiday giving safe.

• Know that real authorities will never demand gift cards. For example, the IRS will never call, text or email demanding payment with gift cards, prepaid debit cards or wire transfers. If someone says otherwise, it’s a scam. 
• Treat any request for gift card payments as a red flag. Whether it’s taxes, fines, emergency requests from friends or donation solicitations, if the ask is for gift cards, treat it with suspicion.
• Verify contact independently. If someone claims to be from an agency, coworker, charity or family member, call them using a known, legitimate number, not the one they gave. Don’t respond directly to unsolicited messages.
• Buy gift cards only from trusted, legitimate retailers and handle codes carefully. Once you scratch off the PIN or provide the number online, the money is essentially gone. 
• Educate your loved ones, especially older relatives or those less familiar with scams. Many schemes target the trust and goodwill of people who want to help, so spreading awareness can prevent emotional manipulation.

When to contact the IRS

If you believe you’ve been targeted or scammed, both the IRS and consumer-fraud resources suggest reporting the incident to the Treasury Inspector General for Tax Administration (TIGTA), the Federal Trade Commission (FTC) or your local law-enforcement agency. 

Remember the IRS will never:

• Call to demand immediate payment using a specific payment method such as a gift card, prepaid debit card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
• Demand that taxpayers pay taxes without the opportunity to question or appeal the amount they owe. All taxpayers should be aware of their rights.
• Threaten to bring in local police, immigration officers or other law enforcement to have the taxpayer arrested for not paying.
• Threaten to revoke the taxpayer's driver's license, business licenses or immigration status.

What scammers really steal

It’s important to remember what scammers are after, and it’s not the decorations or gift wrapping, but the cash equivalent. Once you share a gift-card code and PIN (or grant access), scammers quickly drain the funds, often within minutes. Because gift cards are widely accepted and difficult to trace once redeemed, it’s almost impossible to reverse the damage. 

And because many holiday scams increasingly use phishing emails, fake websites or social-media messages to impersonate trusted organizations, what looks like a legitimate request can be terrifyingly convincing, especially if it plays on genuine worries about taxes, family emergencies or overdue bills. 

Holidays should be about joy, not fear

The holidays should be about warmth, generosity and connection, not panic, fear or regret. However, scammers are aware that goodwill and hectic schedules can cause people to let their guard down. This season, treat any request for gift-card payments with caution, skepticism and a healthy dose of scrutiny.

By staying vigilant, verifying requests, choosing secure and trusted payment channels, and alerting others, you can protect not just your money, but also your holiday spirit.

Let’s keep the cheer where it belongs with gifts, family and festive moments, not in the hands of scam artists.