Steam is discontinuing gift cards due to issues caused by scammers.

      Valve is discontinuing the sale of physical Steam gift cards in retail outlets, bringing to an end a program that has been in existence since 2012. The company confirmed, as noted by SteamDB, that it will stop supplying new stock of Steam gift cards to retailers once the current inventory is depleted.

      However, digital Steam gift cards will still be available. Valve stated that users can continue to purchase them directly through Steam, and any existing physical cards can be redeemed at the users' convenience. Retail stock is anticipated to vanish by the end of 2026.

      Reasons for Valve's decision to discontinue retail gift cards

      Valve explained that this choice follows years of efforts to combat scams. The company collaborated with retailers and law enforcement, implemented clear scam warnings, limited card availability by currency, and removed cards from sale when unusual activities were detected. Despite these measures, scammers managed to adjust their tactics.

      The problem extends beyond Steam. Scammers favor gift cards because they are quick, easily accessible, and challenging to reverse once redeemed. A victim can purchase a card from a regular store, convey the code and PIN over the phone, and lose the funds without ever physically handing over the card. In contrast to a card payment or bank transfer, there is typically no straightforward chargeback option once the value has been claimed. As no bank details are involved, it becomes significantly more difficult for victims or authorities to trace the money.

      Targeting victims and the scam's operation

      Gift card scams commonly target the elderly, isolated individuals, users who are less familiar with digital transactions, and anyone who can be coerced into acting hastily. These schemes usually commence with a phone call, email, text, or message on social media.

      Scammers may impersonate government officials, tech support agents, debt collectors, utility companies, romantic partners, employers, or relatives in distress. Although the narrative may vary, the pressure tactics tend to remain consistent. They demand immediate payment, instruct victims to keep the situation confidential, and dissuade them from ending the conversation.

      Victims are often given specific instructions on which card to purchase and where to obtain it. Once they disclose the card's number and PIN, the funds can be accessed remotely.

      Currently, Valve is the only major company making this move regarding physical gift cards. However, if gift card scams continue to escalate, other companies might also determine that selling them in stores poses too great a risk.