Gift Card Scams Cost Americans $212 Million — Illinois Consumers at Risk

Gift card fraud is becoming a growing problem in Illinois, and across the country.  Scammers are stealing hundreds of millions of dollars from consumers.

According to the FTC, more than 41,000 fraud reports were filed in 2025 involving gift card scams alone.  That also includes prepaid cards and totals a staggering $212M in losses.  Through just the third quarter of last year, there were already more than 30,000 reports and $199M in losses.  Experts expect 2025 numbers to remain just as high.

Gift Card Scams Cost Americans $212 Million — Illinois Consumers at Risk

Read More: Illinois Amazon Shoppers Get Scammed With Fake Recall Texts 

These scams are becoming easier and more sophisticated, mainly due to the advances in technology.  Generally, gift card fraud falls into two categories:

• Online scams

Criminals use false pretenses, like posing as a trusted company or tech support, to trick someone into buying gift cards and sharing the card info.

• Card Draining

Scammers steal gift car information in-store or online before it's even purchase.  They then wait for a customer to load money onto the card and immediately drain the funds.

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Lawmakers actually noticed how frequently this was happening and introduced at least 30 bills aimed at cracking down on gift card fraud.  Many proposals focus on increasing criminal penalties and requiring retailers to post fraud warm notices for customers.

More than 90% of US adults believe online scams are a serious problem.  While older adults remain especially vulnerable, particularly to impersonation scams, nearly 3/4 of adults ages 18 to 64 say they've experienced some form of online attack. [Pew Research Center]

Related: Illinois Man Out $30,000 After Alleged Cryptocurrency Scam

With gift card purchases spiking before and after holidays, Illinois shoppers are urged to stay alert.  If someone asks for payment specifically through gift cards, that's a major red flag.