Gift Card Payment Scams

One of the most prevalent scams involves criminals posing as IRS agents or debt collectors demanding payment via gift cards. In this scam, fraudsters pressure victims to pay a fictitious tax bill immediately using gift cards from popular retailers. They may instruct you to buy the cards and share the card numbers and PINs over the phone or by text message.

This type of scam also appears in a variation tied to tax debt relief services that claim they can negotiate with the IRS if you pay upfront with prepaid cards. However, the IRS does not accept gift cards, cryptocurrency, wire transfers, or prepaid debit cards as payment under any circumstances.

Any legitimate notice about taxes owed will arrive by mail and include clear contact and appeal options. If someone demands immediate payment in gift cards, it’s a strong signal that you’re dealing with fraud.