Michigan Attorney General Dana Nessel reissued a consumer alert on April 21, warning residents about the risks of gift card scams as part of Money Smart Week. The alert advises people to be careful when someone claiming to represent a government agency, utility company, tech support, or even a friend or family member asks for payment using a gift card.
The issue is important because scammers often target vulnerable individuals by posing as trusted organizations or loved ones and demanding urgent payments through gift cards. Once money is loaded onto a gift card and the numbers are shared with the scammer, these transactions cannot be reversed.
“Fraudsters can sound very convincing but remember that no legitimate business or government agency will demand payments through gift cards. If they do, it’s a scam,” said Attorney General Nessel. “Never share personal information or send money in response to these tactics.”
Gift card scams can take many forms, including law enforcement imposter scams, tech support schemes, fake family emergencies such as grandparent scams, charity imposter requests for donations, utility shutoff threats demanding immediate payment by gift card, debt collection demands paid via gift cards, sweepstakes and lottery frauds requiring up-front fees via cards before collecting winnings, and Social Security or IRS tax scams involving fines allegedly owed before benefits are paid out.
Residents who have already provided information from their purchased gift cards to scammers are encouraged to contact the issuer immediately for possible recovery programs and request refunds where available. Victims should also report incidents to authorities such as the Federal Trade Commission and the Attorney General’s Consumer Protection Team.
The Michigan Department of Attorney General has statewide authority to protect residents across Michigan according to its official website. The department advances social efforts through actions against human trafficking and supports vulnerable populations according to its official website. It also focuses on serving Michigan residents through public service initiatives according to its official website, and played a role in drafting the Clean Slate law in 2019 which expanded expungement opportunities according to its official website.
During Money Smart Week, Nessel said alerts will continue throughout the week on social media at @MIConsumerWatch on Facebook, Instagram, X (formerly Twitter), and LinkedIn. Residents seeking help can contact the Consumer Protection Team by mail at P.O. Box 30213 Lansing MI 48909; phone at 517-335-7599; fax at 517-241-3771; toll-free at 877-765-8388; or use an online complaint form.