State Attorneys General Combat Gift Card Scams During Holidays

In a concerted effort to tackle the rising tide of gift card fraud, Pennsylvania Attorney General Dave Sunday has joined forces with attorneys general from 13 other states to launch a public service announcement campaign. This initiative aims to raise awareness about the increase in scams during the holiday season, a time when many Americans redeem gift cards received as gifts. Funded by the Gift Card Fraud Prevention Alliance, the campaign will run until January 31, 2026.

The campaign comes at a critical time, as consumer protection officials highlight the heightened risks associated with gift card usage during the holidays. Scammers often exploit this period, pressuring victims to purchase gift cards and share the codes quickly. Once scammers obtain these codes, the funds are typically unrecoverable, leading to significant financial losses for victims.

State Officials Highlight Fraud Risks

During the announcement, Sunday emphasized the importance of protecting consumers from scams and organized retail crime. He noted that such fraudulent activities ultimately drive up costs for consumers and harm legitimate businesses. This sentiment was echoed by retail industry leaders, who described gift cards as an appealing target for organized crime networks due to their widespread availability and difficulty in tracing.

John Holub, president of the Pennsylvania Retailers’ Association, commented on ongoing efforts to combat fraud. Retailers are investing in advanced fraud prevention tools while collaborating with law enforcement to disrupt criminal activities. The aim is to safeguard both consumers and businesses from the negative repercussions of these scams.

The Gift Card Fraud Prevention Alliance has crafted the campaign to not only deter criminal activity but also to provide consumers with clear guidelines on how to protect themselves. Lisa LaBruno, executive director of the RILA Communities Foundation, which oversees the alliance, reiterated a crucial point: legitimate government agencies and reputable companies never request payment via gift cards. Requests for secrecy or immediate action should raise red flags for consumers.

Taking Action Against Scams

Consumer protection officials are urging individuals who suspect they have fallen victim to gift card scams to report their experiences to their state attorney general’s office. Each report contributes to a larger effort to identify patterns, track organized networks, and build stronger cases against fraudulent operations.

The attorneys general from participating states include those from Arkansas, Kentucky, Delaware, Michigan, the District of Columbia, Nevada, Georgia, Oregon, Illinois, Iowa, South Dakota, Kansas, and Washington. Their collective efforts underscore the urgency of addressing gift card fraud, especially as the holiday season approaches.

As millions of consumers prepare to redeem gift cards, staying informed and vigilant against scams is more important than ever. The coordinated messaging from state officials aims to equip individuals with the knowledge needed to avoid falling victim to these deceptive schemes.