BBB Warns Minnesotans About Gift Card Scam

The Better Business Bureau of Minnesota and North Dakota  is warning consumers of a new spin on some common schemes.

By now, most people have heard about the classic phone scam, where scammers claiming to be with the IRS call people saying they owe money either due to penalties or unpaid taxes and threaten them with arrest if they don’t make an immediate payment. The BBB is now receiving reports that some fraudsters are coercing people to pay them in iTunes gift cards.

Dana Badgerow, president and CEO of BBB of Minnesota and North Dakota said, “The reason fraudsters are urging people to pay with iTunes gift cards is because they are virtually untraceable. If the intended victim gives away the 16-digit code on the back of these gift cards – or any other – they will lose whatever money has been loaded onto them.”

A legit bill collector would never ask you to pay your debt using a gift card.