Scammers often demand payment via gift cards or wire transfers, FTC says

Reports submitted to the Federal Trade Commission show a clear pattern in how scammers demand money. If someone contacts a person unexpectedly and insists on payment through a specific method, it is likely a fraud. The agency analyzed consumer complaints and found that the payment method is often the strongest indicator of a scam.

The FTC warns that legitimate businesses rarely require these forms of payment for resolving problems or delivering prizes. Scammers often create a false sense of urgency, claiming the victim must act immediately to fix a supposed issue with a computer or to claim a lottery prize. They may pose as government officials, tech support agents, or family members in distress.

The specific red flags identified in the reports include requests for bank transfers, wire transfers, or cryptocurrency. These methods allow criminals to take money quickly and make it nearly impossible for the victim to recover the funds once transferred. Once the money leaves the victim's account, the trail often goes cold.

Scammers also frequently ask for payment through mobile payment apps or gift cards. Gift cards are particularly common in these schemes because the thief only needs the code numbers on the back to spend the funds. They do not need the physical card to drain the value.

The FTC advises consumers to stop communicating with anyone who makes these specific demands. Legitimate organizations do not require payment via gift cards or cryptocurrency to settle debts, pay taxes, or deliver sweepstakes winnings. Consumers who receive these calls should hang up and contact the organization directly through a known, official phone number.