Gift Cards are Vulnerable to Fraud, but There’s no Need to Give up on Them

Chargebacks911® COO’s New Guest Feature for Global Banking & Finance Review

Chargebacks911 COO Monica Eaton-Cardone is a world-recognized expert in the payments industry and online fraud management. As such, our friends at Global Banking & Finance Review recently asked Monica to contribute a piece on gift card fraud to their site.

Global Banking & Finance Review is a leading financial portal and print magazine offering news, analysis, reviews, and much more on the topics of banking, trading, wealth management, and technology. Millions of finance professionals and consumers read and trust their content every month.

In the piece, Monica suggests that many merchants may look to gift cards as a solution to short-term cash flow problems resulting from COVID-19. Before they do, though, it’s important to understand the threat posed by gift card fraud.

Monica notes that there are drawbacks to the use of gift cards for merchants. “This is because some of the features that make them so appealing to consumers are also those that make them easy tools to use for fraud,” she says. “They are easy to acquire, easy to cash in, easy to spoof, and virtually untraceable.”

Gift cards can be a great boon, but the fraud threat they pose can exacerbate other problems like soaring chargeback issuances. Merchants must take steps to counteract risk, which may demand seeking outside assistance from dedicated experts. This would allow the merchant to focus their attention where it belongs: on growing the business.