Gift cards are popular for a reason, and you can buy them practically anywhere: retailers, grocery stores, restaurants and sites like Amazon. That makes them a very convenient gift to give and receive at the holidays.

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But their wide availability also comes with some dangers, with gift card scams becoming more common. While acquiring gift cards at valid locations and sites is safe (since cards are activated upon checkout), you should always avoid websites that advertise as a "gift code generator" or anything like it. That's a false claim and a phishing tactic.

And then there are third-party gift card websites offering to buy from and sell to consumers, which is where it gets tricky. Gift card middlemen allow you to buy and sell gift cards online or send them to others. The cards can even be partially used, and you do it all from the convenience of your couch. But it's important to be careful which service you choose, as there are no overarching consumer protections for gift card transactions. Unlike unauthorized charges on your credit card, any money you lose on a gift card is likely gone for good.

Here's information that will help you protect yourself and steer clear of nefarious activities while purchasing or selling gift cards online. Before you finish holiday shopping or try to return unwanted gift cards in your wallet, read on for ways to keep your money and identity safe.

Read more: Are you being scammed? Here's how to know and what to do

A checkered history of gift card companies First, some history. A lot of gift card sales and arbitration companies have struggled financially and shut down over the last few years. In some cases, like that of The Plastic Merchant, many customers were left with uncompleted transactions and lost their money permanently when the company officially declared bankruptcy in 2019. Much mystery surrounded the

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