Scammers are becoming increasingly creative, exploiting every possible loophole to trick unsuspecting consumers. One of the most common tools in their arsenal? Gift cards. Gift cards were designed as a convenient way to give and receive money. Unfortunately, many scammers have hijacked this system to commit widespread fraud.
For victims, the losses can be devastating — and often irreversible. Consumer class action lawsuits are now beginning to shine a spotlight on the institutions that enable this kind of fraud by failing to implement adequate safeguards.
Why gift cards?
Gift cards are attractive to scammers because they are:
- Untraceable: There’s little recourse to track or retrieve the funds once redeemed.
- Unregulated: There’s a lack of uniform consumer protections across brands and platforms.
- Instant: Transactions happen in real time, allowing scammers to cash out before the fraud is reported.
The U.S. Federal Trade Commission (FTC) has reported that billions of dollars have been stolen through this method over the last few years, with losses continuing to rise.
The role of retailers and gift card issuers
Many consumer class action lawsuits are beginning to question the role of major corporations in enabling these scams. Retailers and gift card issuers often fail to implement proactive measures like:
- Flagging suspicious bulk purchases.
- Notifying customers about ongoing scams at the point of sale.
- Implementing cooldown periods before gift cards can be activated.
In some class action cases, victims argue that these companies should be held partially liable for failing to prevent foreseeable harm — particularly when the scam patterns are well-known and preventable.
Gift card scams are a growing menace, preying on consumer trust and institutional gaps. While personal vigilance is crucial, broader accountability is equally necessary. Through consumer class action lawsuits, victims are not just seeking compensation but demanding systemic change. By enlisting dedicated legal guidance, victims can work to hold corporations to higher standards and begin turning the tide on this type of fraud.