Gift Card Fraud Requires a Unified Response

The sophistication of gift card fraud and scams is increasing. To counter this threat and stay ahead of fraudsters, industry leaders are collaborating with law enforcement, legislators, and other stakeholders to shut down gift card fraud and the organized retail criminal rings behind it.

Arkansas State Capitol Building In Little Rock

Retailers and Gift Card networks are Teaming Up to Combat Gift Card Fraud

Partnering with Law Enforcement

Companies are working closely with federal, state, and local law enforcement agencies to dismantle criminal operations tied to gift card fraud. One such initiative is Project Red Hook, a partnership with Homeland Security Investigations to raise awareness, identify strategies to prevent tampering and scams, and hold fraudsters accountable for their crimes. There have been more than 150 arrests of fraudsters engaged in gift card tampering since the project launched in January 2024.

Deploying Advanced Technology

Cutting-edge technologies are being deployed to identify, prevent, and mitigate gift card tampering, fraud, and scams before cards reach consumers.

Training Employees

Retailers are proactively training employees to identify gift card scams and tampered gift cards and assist consumers in spotting the signs.

Safeguarding Consumers

The industry is taking proactive steps to empower and inform consumers by encouraging them to examine cards for signs of tampering, such as broken seals or scratched PIN covers and report tampered cards or scams to store employees or law enforcement.

Retailers and Gift Card Processors are Teaming Up to Combat Gift Card Fraud

Stronger Criminal Laws are Necessary for Deterring Gift Card Fraud

Gift card fraud demands stiff penalties to deter bad actors and hold wrongdoers accountable. The industry is engaging with legislators, stakeholders, and law enforcement to develop and advocate for legislation that assigns clear criminal penalties for gift card tampering and provides law enforcement with tools they need to arrest and prosecute perpetrators. Key priorities include:

Legislation to Combat Fraud

Advocating for laws that classify gift card fraud, scams, and tampering as a crime and assign the greatest value to stolen gift cards.

Law Enforcement Training

Supporting legislation that equips law enforcement with resources and training to recognize and combat gift card tampering, fraud, and scams effectively. This includes education on criminal methods, identification strategies, and best practices for investigation and prosecution.

Criminalizing Unlawful Use of Gift Cards

Backing legislation that specifically criminalizes the unauthorized receipt and use of gift card redemption information. Many prosecutors face challenges due to the lack of state laws addressing this emerging form of fraud.

Targeting Victim-Assisted Schemes

Ensuring law enforcement has the authority to prosecute schemes in which fraudsters deceive victims to obtain gift card redemption information under false pretenses.