Look out for the latest gift card scams

Before you go

You are about to leave flagstar.com and access a site administered by a third-party. The site you are going to may have different privacy and security policies. We recommend that you review these policies on the linked site. If you choose to proceed, a new browser window will open. To return to flagstar.com, close the new browser window.

Continue

Gift cards are a classic red flag that something is amiss. Let’s say someone claiming to be from the IRS calls you about an emergency with your online account. This person can fix it, but first, you need to send a gift card as payment right away. You say, “Uncle Sam uses gift cards? I don’t think so,” and hang up. Nice job. You saw right through their scheme.

As more people learn about this scam, criminals are coming up with new ways to leave their victims with a $0 balance. Although Flagstar doesn’t sell gift cards, we’re here for you at every step of your financial journey, which includes helping you fight fraud and protect your hard-earned money.

How new gift card scams work

Scammers have developed multiple strategies to steal gift card funds, such as:

Tampering with gift card barcodes on store displays
Selling discounted gift cards that are counterfeit, stolen, or have a $0 balance
Using malicious software to find and drain gift cards
Create phony “check your balance” websites that trick people into revealing card information

How to protect yourself from gift card scams

There are some things you can do to avoid getting scammed. Here are a few tips courtesy of the FBI, the Federal Trade Commission, and Flagstar:

Select a gift card from the middle or back of the stack. There are no guarantees, but impatient criminals are more likely to put phony cards near the front.

Look for signs of tampering. Don’t buy if the card or packaging is bent or damaged, if the barcode has been scratched off, or if the barcode doesn’t match the numbers on the packaging.

Skip the gift card rack entirely. Instead, purchase gift cards from behind the counter, if possible, because they’re less likely to have been tampered with.

Pay attention when you check out. The numbers on the receipt should reflect the gift card and the amount you pay.

Stick with official websites. Buy Apple gift cards from apple.com, Target gift cards from target.com, and so on. Official sites are also the only place you should check your balance.

Register the gift card if it’s an option. Keep the receipt, too. If the balance is drained, these things could help you reclaim your funds.

Send or receive money with Zelle^®. Instead of giving gift cards, Flagstar customers can use Zelle^® to send money to people they trust, even if they bank somewhere else¹. It’s just as secure as your Flagstar transactions, there are no fees to use the Flagstar app, and you can add a personalized message if you’d like.

Reporting gift card fraud

If you are the victim of a gift card scam, report it to the local police, your state’s attorney general, and on the FBI Internet Crime Complaint Center You can also file a report with the Federal Trade Commission at reportfraud.ftc.gov.

Then, contact the store, restaurant, or business that issued the gift card. Some of them will reimburse you if you can prove the card was yours. Grocery stores and other places that sell gift cards from various companies won’t be able to help you.

Gift card scams show the importance of being vigilant in protecting your finances. You can reduce your risk by understanding these scams and using preventive measures. Stay informed and know that Flagstar is here to support you in safeguarding your financial well-being.

Still have questions?

Give us a call

Call us

Visit a branch

Find a branch

You may also be interested in:

Earn 4.00% APY² with Flagstar Performance Savings

Grow your money with a great savings rate.

Earn up to 4.15% APY³ with a CD

Explore our wide range of CD account terms that can help you earn more interest.

Person paying for items with their phone

Where does your money go?

Use this calculator to see if your monthly spending matches your budget and keeps you on track for your financial goals.

¹To send or receive money with Zelle®, both parties must have an eligible checking or savings account.

Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

Flagstar Performance Savings

²Annual Percentage Yield (APY) is accurate as of 6/15/2025. Tier 1 $0 – $9,999.99 features an annual percentage yield of 0.10%. Tier 2 $10,000.00 – $24,999.99 features an annual percentage yield of 0.10%. Tier 3 $25,000.00 – $49,999.99 features an annual percentage yield of 4.00%. Tier 4 $50,000.00 – $99,999.99 features an annual percentage yield of 4.00%. Tier 5 $100,000.00 – $499,999.99 features an annual percentage yield of 4.00%. Tier 6 $500,000.00+ features an annual percentage yield of 4.00%. The interest rate(s) and annual percentage yield(s) are variable and may change at any time before or after the account is opened. Initial minimum opening deposit to earn the higher interest rate on the Flagstar Performance Savings account is $25,000 and must be “new money,” which is defined as money that is not currently on deposit in any Flagstar Bank account (except maturing CDs). Additionally, (i) account must be funded within 90 days of the approval date, and (ii) early account closure fee may be imposed for accounts closed within 180 days. A maintenance service charge of $15 will be imposed every statement cycle if the average daily collected balance in the account is less than $10,000. The maintenance service charge will be waived if you are the tax reported owner on this account and you are an owner on a Flagstar personal checking account. Fees may reduce earnings. Personal accounts only. Limited time offer. Area restrictions may apply. If you are a Private Bank client, please contact your Private Client Group to enroll.

Certificate of Deposit

³Annual Percentage Yield (APY). 4.15% APY is accurate as of 6/15/2025 and available as a 6-month term. Fees could reduce earnings. Withdrawals may result in imposition of applicable early withdrawal penalties. $2,500 minimum opening deposit required. Maximum deposit is $10 million. Deposited funds must be “new money,” which is defined as money that is not currently on deposit in any Flagstar Bank account (except maturing CDs). Not available for public units. Certain restrictions, including area restrictions, may apply. Offer subject to change or cancellation at any time without notice. Limited time offer. Important information will be provided to you in the disclosures you receive during the account opening process. Please contact your local branch for more information.