AG James warns New Yorkers to not become victim of 'Boss Scam'

New York's top law enforcement official is warning residents about a text and email scam in which fraudsters pose as a consumer’s employer and ask for gift cards due to a supposed work emergency.

The "Boss Scam" appears to be on the rise during the COVID-19 pandemic with many employees still working from home, said New York State Attorney General Letitia James.

"A legitimate employer will never ask you to purchase gift cards in order to pay clients or for other business purchases," James said. "I urge all New Yorkers to be on the alert for this type of fraud, and to protect themselves and their wallets by following our simple tips."

In the scam, an employee receives a text or email from someone pretending to be their boss who claims there is an urgent matter. The text or email, James said, may ‘spoof’ an employer’s actual name, phone number or email address, making it seem legitimate.

The fake employer then requests the worker buy gift cards to stores such as Target and promises to reimburse the employee. The ‘boss' may also ask the employee to scratch off the back of the gift card to reveal the PIN or claim code and to send photos of the card to the scammer, officials said.

Gift card scams have become prevalent. A December 2020 analysis by the Federal Trade Commission found that one in four consumers who lost money due to a fraud paid with a gift card. Since 2018, the FTC said, Americans have reported losing nearly $245 million to gift card scams, with an average individual loss of about $840.

To avoid the scam, James suggests verifying any supposed emergency by reaching out directly to the employer and not replying to the text or email, even if it appears to come from a known address or phone number.

New Yorkers who've been targeted by this scam are urged to file an online complaint with the attorney general's office or by calling 800-771-7755.

By Robert Brodsky

robert.brodsky@newsday.com@BrodskyRobert

Robert Brodsky is a breaking news reporter who has worked at Newsday since 2011. He is a Queens College and American University alum.