Gift Cards: A Perfect Gift or a Fraudster’s Perfect Tool?
Gift cards are everywhere - birthdays, holidays, or even as a quick thank-you gesture. They’re the most versatile, convenient, and universally appreciated thing, right? Check this: The global gift card market was valued at USD 818.42 billion in 2022, and is projected to reach USD 1,897.46 billion by 2030, growing at a CAGR of 10.46% ( Source ) The key drivers? Rising adoption of digital gift cards and increased corporate gifting initiatives. However, here’s the other side: gift cards have become one of the go-to tools for fraudsters. In 2023, card draining and other gift card-related fraud made up $217 million of the record $10 billion in money lost from scams nationwide , according to the latest data released by the Federal Trade Commission. ( Source ) What once used to be a token of appreciation is not a threat in the financial ecosystem, exploited by fraudsters to launder money, scam people, and conduct illicit activities. The question arises: how can financial institutions protec...