A Costly Diwali Gesture: Bengaluru Techie’s Rs 4.35 Lakh Gift Card Scam
By: Javid Amin
As India prepares for the festive season, a new and costly scam has come to light, with Bengaluru’s Rakesh Kumar (name changed) falling prey to a fraud that cost him Rs 4.35 lakh. It all began with what seemed like a genuine message from his boss, requesting Apple gift cards as a Diwali gift for important clients. But the gesture turned into a nightmare when Kumar, a young techie, realized the request was fake—an elaborate scam by cybercriminals posing as his superior.
This case highlights a new trend in cybercrime: targeting employees with fake messages impersonating bosses or trusted figures to extract gift card payments under urgent pretenses. Here, we explore how the scam unfolded, why gift cards are increasingly being used by fraudsters, and how people can protect themselves against these high-stakes cons.
How the Diwali Gift Card Scam Unfolded
Kumar received a seemingly straightforward message from his boss, who was supposedly in the UK and needed his help urgently. The message read: “I am currently engaged in a conference call meeting, and I need you to run a quick assignment. We need to provide our clients in India with some gift cards. Can you confirm if we can get Apple App Store cards from Paytm?”
Believing it to be a legitimate request from his superior, Kumar didn’t hesitate to act, especially as a newly recruited engineer eager to prove his dedication. He purchased Apple gift cards worth Rs 4.35 lakh, shared the voucher codes over WhatsApp, and thought he’d done his job well. The reality of the situation became clear when Kumar casually mentioned the gift purchase to his HR department, only to find out the request had never come from his boss.
How Gift Card Scams Work
Gift card scams are increasingly common because they offer fraudsters an easy, untraceable way to obtain money. Scammers often impersonate known figures or authorities and ask unsuspecting individuals to purchase gift cards, claiming it’s for a company or family emergency, a client gesture, or even a romantic request. Here’s how such scams typically unfold:
- Impersonation: Scammers pose as bosses, family members, or authority figures.
- Urgency: Victims are pressured with a sense of urgency to buy gift cards immediately.
- Request for Codes: Once purchased, victims are asked to share the gift card codes directly, giving scammers immediate access to the funds.
- Untraceable Use: Once the codes are redeemed, the funds are either spent immediately or converted into cryptocurrency, making recovery nearly impossible.
Why Gift Cards Are Prime Targets for Scammers
Gift cards are an attractive tool for scammers for several reasons:
- Easy Access and Distribution: Gift cards can be bought and shared digitally, making them a convenient target for online fraud.
- Untraceable Transactions: Once a gift card code is redeemed, it’s challenging to trace, as the transaction is often treated like cash. Retailers rarely require the recipient’s details, enabling scammers to remain anonymous.
- Rapid Liquidation: Fraudsters often redeem the funds immediately or convert them to cryptocurrencies like Bitcoin or Ethereum, further obscuring the transaction trail.
- Difficulty in Recovery: Unlike credit card fraud, where transactions can be disputed, retrieving money lost to gift card scams is almost impossible.
Rising Cases of Gift Card Scams in India
Gift card scams are not confined to the corporate world. They have also infiltrated everyday interactions, targeting various sectors and age groups. Here are a few types of scams that have been prevalent in India:
1. Tech Support and Government Impersonation Scams
In these cases, scammers pose as tech support agents or government officials, claiming there are fines or dues that need to be paid urgently. Victims are instructed to pay these “dues” via gift cards, fearing legal repercussions if they refuse.
2. Fake Job and Remote Work Scams
Scammers lure victims with fake job offers or work-from-home opportunities, sending a “sign-on bonus” check. They then instruct victims to purchase gift cards as part of the onboarding process. Days later, the check bounces, and the victim is left to cover the losses.
3. Romance Scams
This form of scam has seen a rise, with reports suggesting that up to 43% of Indians have experienced romance-related fraud. Fraudsters build an emotional connection and then manipulate victims into purchasing gift cards as a form of support, gift, or emergency assistance.
4. Fake Sweepstakes and Prize Scams
Scammers reach out claiming that victims have won a prize but must first pay “processing fees” with a gift card. Victims often feel pressured to pay, fearing they might lose out on a valuable reward.
Recognizing and Avoiding Gift Card Scams
With scams becoming increasingly sophisticated, it’s essential to stay vigilant. Here are some red flags and prevention tips:
1. Be Wary of Unsolicited Messages
Messages requesting gift cards, especially those sent via SMS or WhatsApp, are likely fraudulent. Legitimate companies rarely request gift cards as a form of payment or gift, especially through informal communication channels.
2. Verify Urgent Requests
If a supervisor or familiar figure sends an urgent request for gift cards, take a moment to verify the message. Call the person directly or contact HR to confirm authenticity. Scammers often bank on victims acting before thinking.
3. Know the Common Phrases Used by Scammers
Scammers often use phrases like:
- “I’m in a meeting and can’t talk—can you handle this urgently?”
- “This is a client gift; please keep it confidential.”
- “If you don’t comply, there will be fines or legal consequences.”
4. Protect Personal and Financial Information
Refrain from sharing personal information or financial details via text or chat. If someone asks for a PIN or bank information, it’s almost certainly a scam.
5. Report Suspicious Messages
If you encounter a suspicious message, report it to your company’s IT department or local cybercrime branch. Reporting can help protect others from falling into the same trap.
Steps to Take If You’ve Been Scammed
If you’ve fallen victim to a gift card scam, quick action can sometimes mitigate the damage. Here’s what to do:
- Contact the Gift Card Provider: Some providers have mechanisms to help track unused funds. While this is often a long shot, reporting the loss immediately may improve the chances of halting a transaction.
- File a Police Report: Lodging an FIR with the cybercrime branch, as Kumar did, is essential. Authorities might be able to trace certain patterns or warn the public of active scams.
- Monitor Accounts and Enable Alerts: Scammers may try to gain access to other accounts, so monitor your financial accounts and enable alerts for unusual activity.
- Stay Informed: Learn from your experience and keep updated with the latest scam alerts. Cybercriminals are constantly changing their tactics, so being aware of recent scams is key to prevention.
Bottom-Line: Protecting Yourself During Festive Seasons
Festive seasons can make people more vulnerable to scams as scammers exploit the goodwill and financial exchanges typical of these times. Awareness is the first step in safeguarding yourself and your loved ones from cyber fraud. In Kumar’s case, the “Diwali gesture” cost him dearly, and such incidents serve as reminders to always verify before taking action.