iTunes gift card scams on the rise

Everyone likes gift cards — especially, it turns out, scammers.

A gift card is like cash — a quick, convenient and untraceable way for con artists to get peoples’ money. And even if the victim realizes they've been scammed, there's typically no way to reverse the transaction.

The Attorney General’s Office is finding that the iTunes gift card is the payment method of choice for many scammers. In recent months, the Attorney General’s Office has received many complaints about scams utilizing the gift cards.

The U.S. Treasury Department has issued a scam alert saying that callers impersonating IRS employees or pretending to be with the Treasury Department are demanding payments on iTunes gift cards. "Any call requesting taxpayers place funds on an iTunes gift cards or other prepaid cards to pay taxes or fees is an indicator or fraudulent activity!" the Treasury Inspector General for Tax Administration cautioned.

Apple is aware of the problem and has posted this warning notice on the gift card section of its website: "iTunes Gift Cards are solely for the purchase of goods and services on the iTunes Store and App Store. Should you receive a request for payment using iTunes Gift Cards outside of iTunes and the App Store please report it at ftc.gov/complaint."

How the scam works

When a fraudulent caller convinces someone to pay, the victim is told to go to a store, purchase an iTunes gift card, load money onto it and then provide the 16-digit code on the back of the card. This can be done by phone call, text or email. Sometimes, the crook will stay on the phone with the victim as they go to the store and buy the card.

Once a pin number is given, the scammer quickly uses the money on the card or sells the pin number to other crooks. And the consumer is left with a worthless piece of plastic.

The digits on the back of the cards should be thought of as cash. Giving that code to someone is like giving them cash. If someone asks for payment via a gift card, it is almost certainly a scam.

The bottom line: If you're not shopping at the iTunes store, you should not be paying with an iTunes gift card.

If you have questions about this scam, or to report a scam, contact the Missouri Attorney General’s Consumer Protection Division at 800-392-8222.