Gift Card Scams in Canada: Warning Signs and How to Report Them
Prepaid gift cards are a favourite payment method for fraudsters because the money moves fast and is hard to trace. Knowing the patterns is the best protection.
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If anyone asks you to buy a gift card and send them the numbers, it's a scam. Every time. Stop, hang up and talk to someone you trust.
Common scams involving prepaid cards
Government or police impersonation
A caller claims to be from the Canada Revenue Agency, Service Canada, a police force or immigration, says you owe money or face arrest, and demands payment in gift cards. Real agencies never do this.
Tech support and bank "security" calls
A pop-up or caller says your computer or bank account is compromised and you must "secure" your money by buying cards. The numbers you read out are drained within minutes.
Romance, family emergency and "grandparent" scams
Someone you met online, or a caller pretending to be a relative in trouble, asks for urgent help paid through gift cards, often with a request to keep it secret.
Online marketplace and prize scams
A buyer overpays with a fake cheque and asks for the difference in gift cards, or you "win" a prize but must pay a fee in cards first.
Fake balance-check websites
Copycat pages, sometimes promoted through search ads, imitate a balance checker and record the card number, expiry and security code. The only safe place to enter those details is the address printed on your card, typed in yourself.
Package tampering (card draining)
Criminals open card packages on the rack, record the numbers, and reseal them. When a shopper activates the card, the criminals spend the balance. Always inspect the package and check your balance soon after buying.
Warning signs
- You're asked to pay a debt, fine, fee or tax with gift cards.
- The person insists on urgency or secrecy, or tells you to lie to the cashier.
- You're asked to scratch off the security code and read or photograph it.
- They stay on the phone with you while you shop.
- A website that is not the one printed on your card asks for your card details.
How to report fraud in Canada
- Call the card issuer using the number on the back of the card. Ask them to freeze the card and note the time you reported it.
- Report to the Canadian Anti-Fraud Centre (CAFC) online through the National Cybercrime and Fraud Reporting System, or by phone at 1-888-495-8501 (weekdays, Eastern time).
- Report to your local police and ask for a file number.
- Keep the evidence: the cards, receipts, phone numbers, messages and the names used.
Reporting helps even if the money can't be recovered, because it helps authorities spot patterns and warn others. The CAFC website also publishes current scam alerts.
Protecting yourself and others
- Talk to older relatives about gift card scams; they are frequent targets.
- Retail staff: if a customer is buying a large number of cards while on the phone, it's reasonable to gently ask if someone is pressuring them.
- Bookmark the real balance website printed on your card and use only that bookmark.
Scam questions
Would the CRA, police or a utility ever ask for payment in gift cards?
No. The Canada Revenue Agency, police, courts, utilities, banks and technology companies do not accept gift cards as payment. Anyone asking you to pay this way is attempting fraud.
I already gave the card numbers to a scammer. What now?
Call the card issuer immediately using the number on the back of the card and ask them to block it. Then report to the Canadian Anti-Fraud Centre and your local police. Keep the cards and receipts.
Is it safe to sell my unused prepaid card online?
Be very careful. Buyers on marketplaces sometimes ask for the card details "to check the balance" and then spend it without paying. Never share the full card number, expiry and security code with a stranger.