Authorities raise warning as Aussies lose over $115,000 to gift card scams

In today's digital age, scams are becoming increasingly sophisticated, and even the savviest can fall prey to clever con artists.

A recent surge in gift card scams has prompted Consumer Protection to issue an urgent warning to West Australians, as unsuspecting victims have been swindled out of substantial sums of money.



The alert, released on Thursday, 1 August, painted a concerning picture: 49 individuals have collectively lost $115,852 to scammers, with Apple iTunes gift cards being a particularly common tool for fraud.

These scammers often impersonate someone the victim trusts, such as a boss or a reputable business, to request credit card details under the guise of purchasing gift cards.


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An alert was raised after 49 individuals lost $115,852 to scammers with Apple iTunes gift cards as a tool. Credit: Shutterstock


One alarming case involved an 18-year-old woman who received an email that appeared to be from her employer asking her to buy Apple iTunes cards.

The scammers' persistent messaging led her to hand over her credit card details, resulting in a staggering loss of $7,600.

Commissioner for Consumer Protection Trish Blake emphasised the critical role retailers play in preventing these scams.



‘There has been a long-term agreement with retailers that they would display warnings about gift card scams and train their staff to quiz customers who are purchasing a large volume of gift cards,’ Blake said.

‘Spot checks by my staff reveal these warnings have fallen by the wayside.’

Blake also delivered a stark warning: recovering funds lost to gift card scams is nearly impossible.

She stressed that no legitimate business or government department will ever request payments via gift cards.



‘If you receive an email from your boss or CEO asking you to purchase a large amount of gift cards, wait until you can confirm the request in person or speak to a trusted colleague,’ Blake said.

‘Lastly, if you work somewhere that sells iTunes gift cards and someone tries to buy thousands of dollars worth in one transaction, talk to your manager or ask the customer to talk to Consumer Protection.’

If you or someone else has been scammed, you can report it to Scamwatch here.

You can also head over to our Scam Watch forum to stay updated with the latest tricks scammers use to deceive people out of their money and sensitive details.
Key Takeaways
  • Consumer Protection has issued an urgent warning after 49 victims in Western Australia lost a total of $115,852 to gift card scams, particularly involving Apple iTunes cards.
  • Scammers posed as known contacts or businesses to trick individuals into providing credit card details to purchase gift cards.
  • Commissioner for Consumer Protection Trish Blake urged retailers to display warnings and to train staff to be vigilant with customers buying large volumes of gift cards.
  • Victims of gift card scams are unlikely to recover their lost money, and the public is advised that no reputable business or government department would request payment via gift cards.
Have you or someone you know encountered a gift card scam? What measures do you take to ensure you're not duped by these fraudulent schemes? Share your experiences and tips in the comments below!
 
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