What are eBay gift card scams? And how to avoid them

eBay 101: What You Should Know

eBay is a multinational e-commerce platform founded in 1995. Originally called AuctionWeb, eBay helped pioneer online consumer-to-consumer (C2C) sales—allowing both individuals and businesses to buy, sell, and auction items online.

• Global Reach: eBay boasts millions of users worldwide, making it a go-to marketplace for everything from collectibles and electronics to cars and luxury goods.
• Fees and Listings: Buyers generally use eBay for free, while sellers pay insertion fees and/or a final value fee once an item is sold (after a certain number of free listings).

Because it’s so popular, scammers also flock to eBay—targeting unsuspecting buyers, sellers, and especially individuals who use eBay gift cards.

What Are eBay Gift Cards?

An eBay gift card is a prepaid card that you can load with a specific amount of money and then use to purchase items on the eBay platform. They’re a great solution if you’re not entirely sure which product a friend or loved one might want—giving the recipient the freedom to choose something for themselves.

• Why They’re Popular
  • Easy Gifting: You can buy eBay gift cards in various denominations, making them perfect for birthdays, holidays, or last-minute presents.
    
    
  • Flexibility: Recipients can browse the millions of listings on eBay to find exactly what they need.
    
    
  • Trade-ability: If the recipient decides not to spend the card on eBay, there are marketplaces and exchange platforms where they can trade eBay gift cards for cash.

Where To Buy and How To Use eBay Gift Cards

You can purchase physical eBay gift cards in retail stores—such as Rite Aid, Best Buy, CVS, Hallmark, and other major outlets—and digital eBay gift cards online at popular sites like eBay.com (for consumers) or Toastycard.com (for businesses).

• Using an eBay Gift Card
  1. Redeem at Checkout: Enter the gift card code (and PIN, if applicable) during eBay’s checkout process.
  2. Combine Balances: If an item costs more than the card’s balance, you can pay the remainder using a credit/debit card or PayPal.
  3. Buyer Protection: eBay’s buyer protection applies only to purchases made entirely through eBay’s official platform. If you give your eBay gift card codes to a third party outside of eBay, you lose that safety net.
     
     
     

Why eBay Gift Cards Are Prime Targets for Scammers

Scammers love gift cards because they function like digital cash:

• No Chargebacks: Once they have the code, there’s no easy way for the victim—or eBay—to reverse the transaction.
• Immediate Access: Fraudsters can spend the balance immediately or even resell the card at a discount.
• Growing Popularity: According to the Federal Trade Commission (FTC), Americans lost nearly $161 million to gift card scams in the first nine months of 2023 alone—many of those scams specifically involved eBay gift cards.
  
  
  

Eight Common eBay Gift Card Scams (and How To Avoid Them)

Below are some of the most prevalent scams targeting eBay gift card users:

1. Cheap Vehicles on eBay Motors

• How It Works: A “seller” advertises a car or motorhome at a bargain price, demanding payment via eBay gift cards but outside of the official checkout.
• Why It’s Risky: eBay won’t protect you if the transaction doesn’t go through its platform.
• Prevention: Only pay through eBay’s official system. If the seller insists on gift cards, it’s likely a scam.
  
  

2. Impersonation Scams Demanding Gift Cards

• How It Works: Scammers pretend to be from the IRS, your utility company, or even a government agency. They threaten legal action unless you pay “overdue bills” using eBay gift cards.
• Prevention: No government agency or legitimate business will require gift cards as payment. If you’re unsure, hang up and contact the agency through an official phone number or website.
  
  

3. Too-Good-To-Be-True Marketplace Deals

• How It Works: Fraudsters post items online with unbelievably low prices. They demand upfront gift card payments sent directly to them.
• Prevention: Deep discounts that seem unrealistic usually are. Always verify the seller’s feedback, listing details, and avoid paying with gift cards when not going through eBay checkout.
  
  

4. “Boss” or Coworker Text Scams

• How It Works: Scammers spoof your boss’s email or phone number, asking you to urgently buy eBay gift cards for a work event or client.
• Prevention: Double-check any unusual request by calling or speaking face-to-face with your boss. High-pressure requests for gift cards are a major red flag.
  
  

5. Fake Debt Collection

• How It Works: You receive a message or call claiming you owe money and must pay immediately with an eBay gift card.
• Prevention: Debt collectors or legitimate agencies never request gift cards for payment. Verify any debt by calling the real institution or checking official statements.
  
  

6. Tech Support Scams

• How It Works: A pop-up or unsolicited call warns of a virus on your device, asking you to pay for “tech support” using eBay gift cards.
• Prevention: Close the pop-up, hang up the call, and contact the company directly through its official website. Real tech support won’t demand a gift card.
  
  

7. Deep Discounts Requiring Gift Cards

• How It Works: A scammer pretends to be a big brand (like Ticketmaster, Apple, or a hotel chain), offering steep discounts but only if you pay with eBay gift cards.
• Prevention: Legitimate merchants don’t require gift card payments for discounted offers. Always verify promotions on the official site or by phone.
  
  

8. Fraudulent “Account Compromise” Calls

• How It Works: Criminals call, claiming to be from eBay or your bank’s fraud department. They say your account is compromised and instruct you to “safeguard” your money by loading it onto eBay gift cards.
• Prevention: Hang up and call back using the phone number on eBay’s or your bank’s official site. Gift cards won’t “protect” your money.
  
  
  

7. How To Protect Yourself from eBay Gift Card Scams

1. Treat Gift Card Codes Like Cash

   • Never reveal the redemption code to strangers. Once they have the code, your balance is essentially gone.
     
     

2. Only Redeem at Checkout on eBay.com

   • If anyone asks you to share the code outside of eBay’s official checkout, that’s a scam sign.
     
     

3. Verify Payment Methods

   • Legitimate sellers and companies accept standard payment methods (credit/debit, PayPal). Gift cards should only be used as a convenience for you—not demanded by others.
     
     

4. Beware of Urgent or Emotional Requests

   • Scammers often try to create panic or urgency (e.g., “Act now or face legal action!”). Take a moment to confirm the details.
     
     

5. Check the Source of Any Communication

   • Don’t trust caller IDs, because numbers can be spoofed. If in doubt, hang up and call the official number listed on the company’s website.
     
     

6. Keep Personal Info Private

   • Scammers may try to gather Social Security numbers, bank details, or other personal data during the con. Share only the information you must when making a legitimate purchase.
     
     

7. Use Credit Monitoring or Identity Theft Protection

   • If you suspect your data might be compromised, services like Aura or other identity theft protection providers can help you monitor and secure your accounts.
     
     

What To Do If You’ve Already Been Scammed

1. Retain Your Receipts and Evidence

   • Keep the physical or digital gift card, activation receipts, and any messages from the scammer.
     
     

2. Contact eBay Customer Service

   • Explain the situation. If the scam happened on-platform, file a dispute. While eBay typically doesn’t cover off-platform gift card misuse, they should be notified.
     
     

3. Notify Your Bank and Credit Card Companies

   • If you disclosed any financial details, ask your bank to freeze or close affected accounts.
     
     

4. Freeze Your Credit

   • Contact the three credit bureaus (Experian, TransUnion, Equifax) to initiate a credit freeze. This helps prevent scammers from opening new accounts in your name.
     
     

5. Report the Scam

   • File a complaint with the Federal Trade Commission (FTC) and your local police if you lost a significant amount of money.
     
     

6. Monitor for Identity Theft

   • If you provided any personal information (like your Social Security number), keep an eye on your credit report or use an identity theft protection service.
     
     
     

How To Buy eBay Gift Cards Legitimately

While eBay gift cards are vulnerable to scams when used incorrectly, they’re perfectly safe and convenient when you purchase them through legitimate channels and redeem them properly. You can find eBay gift cards in physical retail stores (like CVS or Best Buy), purchase digital versions directly on eBay.com, or use a trusted distribution platform.

One especially convenient option is Toasty, which sells eBay gift cards with no additional up-charge. In other words, you pay only the face value of each card—so if you load $50 on a gift card, it costs exactly $50. Toasty also specializes in bulk gift card orders (including for corporate rewards or large giveaways), making the process seamless and more affordable compared to many retail options.

No matter where you buy your eBay gift cards, always remember:

• Redeem them only through eBay’s checkout to keep your purchases covered.
• Never share codes with third parties who ask for “payment” outside of eBay.
• Keep your guard up for anyone claiming you owe debts or fees payable via gift cards.
  
  

By obtaining your eBay gift cards from reputable sources—like Toasty or the official eBay site—and staying vigilant against common scams, you’ll enjoy all the benefits of these versatile cards without putting your funds or personal information at risk.