Combatting gift card fraud: A call to action

Apr 25, 2024
Written by WR Communications

Gift card fraud has become an evolving threat, spanning from victim-assisted scams to sophisticated digital attacks and now to the emerging trend of gift card tampering. Recent prosecution cases highlight the severity of online criminal activity, with Richard Verret’s indictment revealing a scheme worth over $22 million.

Furthermore, gift card tampering, a subset of Organized Retail Crime (ORC), poses a new challenge. Fraudsters compromise card packaging, stealing sensitive information before the cards reach consumers, resulting in significant losses for retailers and brands.

Despite preventative measures such as secure packaging, the adaptability of fraudsters demands consistent collaboration with law enforcement. However, challenges persist in prosecuting card tampering criminals, necessitating education for local law enforcement and clarity on charges.

Homeland Security Investigations (HSI) urges national awareness and immediate reporting of suspicious activity to combat this growing threat. By fostering collaboration and enhancing awareness, stakeholders can protect the integrity of the gift card industry and safeguard consumers against fraud.


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