A Canberran lost $25,000 to phone scammers after transferring gift cards to fraudsters, leading police to warn Canberra businesses to be alert to combat the scam.
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ACT police said multiple incidents have been reported where payments are made to phone scammers using online gift cards.
The scams involve a caller claiming to be a tax office official calling about a tax evasion. The caller tells the victim to purchase and transfer Google Play cards, or other gift cards to them, to pay off the supposed debt.
ACT police have called on Canberra businesses to be on the look out for customers purchasing gift cards using large amounts of money in order to stamp out the scammers.
"Do not be afraid to ask the purchaser what the cards are for," an ACT police spokesman said.
"Police are reminding the community that if you receive demands for money via phone, in the post, or online from other government agencies, you can check their validity by contacting the agency directly."
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The Australian consumer watchdog reported more than $5 million was lost in 2018 due to scams involving gift cards, a 38 per cent increase compared to the year before.
Losses from iTunes gift card scams accounted for $3.1 million lost last year.
"Police, the Australian Taxation Office and other agencies will never ask members of the public to settle debt by paying with gift cards," the police spokesman said.
Those potentially targeted by the scam or people with information have been urged to contact CrimeStoppers on 1800 333 000.