Scammers Will Call Posing as Government Officials, Wanting You to Pay Them With Gift Cards

The fraudulent callers most often pretend to be officials from government organizations such as the IRS the FBI and even local sheriffs’ offices

August 8, 2025

Across North Carolina and the entire country seniors and other consumers still receive urgent calls from fraudsters claiming to be IRS agents FBI officers local sheriffs or Social Security Administration representatives. They allege you owe past-due taxes a loved one faces arrest for a traffic violation or that a court warrant will be issued unless you pay immediately via gift cards prepaid debit cards or cryptocurrency. No legitimate government agency ever demands payment in this form. Understanding the full scope of these scams how to verify true government contacts and what to do if you’re targeted will protect your savings and identity.

How the “Gift Card” Impersonation Scam Works

Scammers spoof caller ID so the phone displays the actual agency name or a familiar local number. A typical script:

Caller threatens arrest wage garnishment license suspension or deportation unless you pay “right away.”
They demand payment via Apple iTunes Google Play or Amazon gift cards prepaid debit cards or ask you to transfer cryptocurrency to a provided wallet address.
They insist you keep the matter confidential, do not tell family or attorneys.
They may transfer you to a “supervisor” or play recorded court audio to intimidate you further.

Once you read gift card codes or send funds the money is instantly irretrievable. Scammers may also harvest your personal information, name address Social Security number and banking details—for identity theft.

Why Gift Cards and Prepaid Methods Are Popular with Scammers

Gift cards and prepaid cards function like cash. Codes can be sold internationally on black markets or redeemed quickly online. Cryptocurrency payments provide anonymity and irreversible transfers. Unlike credit card charges or wire transfers, there’s no banking network to recall a gift card or crypto transaction once redeemed. Scammers exploit these features to prevent victims from recovering any money.

Recognizing the Red Flags

Any call threatening immediate legal action and demanding payment via gift cards is a clear scam. Other warning signs include:

The caller refuses to provide a badge or officer ID number, or gives a generic badge like “Badge 000.”
They request secrecy, “Do not tell your family or the police.”
They claim you must pay before you can speak to a real supervisor or verify the warrant.
Scripts include background noise of a call center, music on hold or fake court room audio to heighten urgency.
They insist on immediate payment within hours or minutes or threaten extra fines.

Verifying Legitimate Government Contacts

Always hang up before providing any personal or payment information. Then:

Look up the agency’s official phone number from a trusted source, IRS.gov for federal tax matters, your county sheriff’s website for local law enforcement, SSA.gov for Social Security issues.
Call that number directly to confirm whether any action is pending against you.
Never trust caller ID alone, spoofing makes any number appear genuine.
Ask for written notices, government agencies send official letters before demanding payment.

How to Protect Yourself and Your Family

Register on the National Do Not Call Registry at donotcall.gov to reduce telemarketing calls.
Enable call blocking and spam filters, contact your phone carrier or install apps that identify and block suspected spoofed numbers.
Educate seniors and other vulnerable relatives about never sending gift card codes or cryptocurrency to anonymous callers.
Maintain a family verification plan such as a code word only known to you and close relatives that callers must reference to prove legitimacy.

Reporting the Scam

Immediately after hanging up report the incident to:

Federal Trade Commission: file a complaint at reportfraud.ftc.gov.
FBI’s Internet Crime Complaint Center: at ic3.gov for electronic payment scams.
North Carolina Attorney General’s Consumer Protection Division: call (919) 814-5400 or file online.
Local law enforcement: provide any recorded numbers or details to assist in tracking call sources.

What to Do If You’ve Already Paid

If you’ve purchased gift cards or sent cryptocurrency:

Contact the retailer immediately, Apple Google or Amazon—and request a freeze or refund if the card has not yet been redeemed.
In the case of gift cards, call the issuer’s fraud hotline; sometimes unredeemed balances can be recovered.
If you sent cryptocurrency, immediately notify the exchange or wallet provider and freeze your account; law enforcement may trace transactions.
Place fraud alerts on your credit reports with Equifax Experian and TransUnion and consider a credit freeze if you shared Social Security or banking information.

North Carolina Resources and Assistance

Victims in North Carolina can also seek help from:

Adult Protective Services: 24/7 hotline at 1-800-624-3004 if an elderly family member is targeted.
North Carolina Department of Justice Elder Fraud Unit: resources and victim assistance at (919) 814-5400.
Local Area Agencies on Aging: offer free educational workshops on phone scams and digital safety.

Key Takeaways

No legitimate government agency requests gift cards or cryptocurrencies for payment.
Always verify by calling official numbers found on government websites or past official correspondence.
Use call-blocking tools and educate vulnerable family members to stop scam attempts early.
Report all incidents to federal and state authorities to help shut down fraudulent operations.

By staying alert, verifying any unexpected payment demands and using available reporting channels you can thwart these government impostor scams and protect both your money and identity.