Gift cards are now an increasingly common option for both giving and receiving offers only because they are flexible and convenient. But because of its convenience, scammers are now targeting them. Fraud of gift cards is a very fast spreading problem that costs millions of dollars, impacts early and affects customers as well as businesses. In the current online world, how to defend yourself against these frauds is very important.
The Rise of Gift Card Fraud
Since Gift Card fraud is certainly not a recent incident, it changes over time. In the earlier times, Gift card scammers would either physically withdraw gift cards or alter them at the point of transaction. But since digital transactions and online purchasing are increasing in popularity, Scammers have evolved to use more complicated techniques. These involve the use of the software that may identify active gift cards by hacking credentials and phishing attacks in which victims are tricked into disclosing gift card data. The Federal Trade Commission (FTC) reports that, in 2022 alone, victims of gift card frauds claimed losses of over $233 million, a significant rise over the previous years.
Common Types of Gift Card Scams
There are a few kinds of gift card fraud that need your attention. Among them are: Phishing scams:- Fraudsters regularly send texts or emails pretending to be trustworthy businesses or individuals and asking the receiver to redeem gift cards to cover a price. These types of messages can seem quite convincing, and they frequently use methods that convince the other person to respond immediately which includes fear or hurry. Card Tampering:- On the shop shelves, fraudsters occasionally tamper with gift cards by scratching off the security code by covering to duplicate the card number. They can hold off on emptying the balance from the card until a consumer activates it. Resale fraud:- Fraudsters regularly offer to purchase gift cards at an affordable price, but they never do or they provide gift cards that are empty. On uncontrolled marketplaces and other online platforms, this kind of scam is common.
How Investsphere can help Protect you
Understanding the increased risk of gift card vandalism, Investsphere serves as a tool and services that will help in securing customers from fraudsters. In addition to offering clients with real-time notifications about developing threats, our platform also offers instructional content that teaches users how to identify and how to prevent scams like gift cards. In addition, to ensure the security of gift card transactions, we have worked with a number of retailers. To help customers take action quickly, Investsphere’s Fraud Detection system, for example, can identify suspicious behaviour with gift cards and notify users instantly.
This blog article does not intend to provide legal or financial advice; instead it is meant purely for educational purposes. Always seek expert advice before making your decisions about preventing different frauds.
Conclusion
Gift card fraud is a significant and increasing risk but you can defend against it by being aware of the world around you and on the lookout for indications of fraud. Whether you are buying, selling and trading or redeeming your gift cards always take precautions. InvestSpehere is here to provide you with the knowledge and tools you need to keep yourself secure.