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The addition of a PIN number can delay a fraudster, but not deter them entirely.They can scratch off the coating, revealing the PIN and replace it with a new sticker easily purchased from e Bay.The dollar amounts on each individual transaction are relatively small and not enough to garner the attention of large law enforcement agencies that have the ability to catch the perpetrators. Lastly, it’s easy to convert gift card value into money or merchandise. There are three primary categories of fraud: As described earlier with the Starbucks story, thieves can hack into gift card accounts and quickly drain them of money.

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This is how it works: Another very common method of gift card fraud is committed is through stealing numbers off physical gift cards.

This type of fraud is fairly low-level and does not result in a huge loss to the merchant, but is quite a shock to the customer when the recipient of a gift card tries to redeem it and finds that the balance is zero.

Some retailers will reimburse the customer with the face value of the gift card, but this ends up being a reputational hit for the retailer, as well as a headache for the consumer.

Regardless, it is important for both merchants and customers to know how gift card fraud occurs, so they can recognize the behavior and protect themselves.

On June 1, Australian retailer Woolworth’s experienced a data breach that led to AUS

This is how it works: Another very common method of gift card fraud is committed is through stealing numbers off physical gift cards.

This type of fraud is fairly low-level and does not result in a huge loss to the merchant, but is quite a shock to the customer when the recipient of a gift card tries to redeem it and finds that the balance is zero.

Some retailers will reimburse the customer with the face value of the gift card, but this ends up being a reputational hit for the retailer, as well as a headache for the consumer.

Regardless, it is important for both merchants and customers to know how gift card fraud occurs, so they can recognize the behavior and protect themselves.

On June 1, Australian retailer Woolworth’s experienced a data breach that led to AUS $1.3 million worth of gift card numbers being leaked online.

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This is how it works: Another very common method of gift card fraud is committed is through stealing numbers off physical gift cards.This type of fraud is fairly low-level and does not result in a huge loss to the merchant, but is quite a shock to the customer when the recipient of a gift card tries to redeem it and finds that the balance is zero.Some retailers will reimburse the customer with the face value of the gift card, but this ends up being a reputational hit for the retailer, as well as a headache for the consumer.Regardless, it is important for both merchants and customers to know how gift card fraud occurs, so they can recognize the behavior and protect themselves.On June 1, Australian retailer Woolworth’s experienced a data breach that led to AUS $1.3 million worth of gift card numbers being leaked online.

.3 million worth of gift card numbers being leaked online.




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