Financial Fraud

LUCKNOW—Gift cards, once a convenient and popular gifting option, have become a prime target for scammers. The Federal Trade Commission (FTC) reports a significant increase in gift card fraud, with losses reaching millions of dollars annually. These scams often exploit the anonymity and untraceability of gift cards, making them a preferred tool for fraudsters.Common tactics include skimming gift card information in retail stores, hacking online gift card accounts, and posing as customer service representatives to obtain card details. Scammers then use the stolen funds for online purchases or resell the cards on the black market.Retailers are responding by implementing stricter security measures, such as tamper-proof packaging and enhanced online verification processes. Law enforcement agencies are also working to track down scammers, but the global nature of these crimes presents challenges."Consumers must treat gift cards like cash". "Never share card details over the phone or email and always purchase cards from reputable retailers."As the holiday season approaches, the spotlight on gift card fraud intensifies, highlighting the need for heightened vigilance and consumer education.