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2nd July 2024

Safeguarding Gift Card Purchases from Stolen Credit Cards


Vulnerabilities in gift card systems are being exploited, causing big concern for retail businesses. With the fast growth of e-commerce and the increasing popularity of online gift cards, ensuring your gift card system is safe and secure is now more important than ever. In this article, I will highlight the potential threats and the steps your business can take to ensure maximum security and protection against fraudsters.

Choosing a secure payment provider is a key step in protecting your gift card system from fraud. Reputable providers like PayPal, Stripe, and Opayo offer robust security measures designed to detect and prevent fraudulent transactions. These providers utilise advanced technologies such as encryption, tokenisation, and real-time transaction monitoring to safeguard sensitive information. Additionally, they employ sophisticated fraud detection algorithms that analyse transaction data for suspicious patterns, such as inconsistent billing and shipping addresses, unusual purchasing behaviour, and mismatched credit card information.

Advanced fraud detection and screening tools leverage machine learning, artificial intelligence, and extensive databases to analyse vast amounts of transaction data in real-time. These tools identify patterns and anomalies that indicate potential fraud by examining various data points such as purchase history, geographic location, device information, and behavioural patterns. For instance, Reuben Digital integrates Stripe Radar data into a custom fraud prevention platform to automatically block suspicious orders and spot emerging trends. Additionally, real-time transaction monitoring, adaptive AI, and behavioural analytics help detect evolving fraud patterns and ensure secure transactions. By supporting these tools and integrating them into your e-commerce platform, you can automatically block or delay suspicious orders, reducing financial losses and protecting your business.


Implementing a short delay before sending eGifts is a critical strategy in preventing fraud. This delay provides banks and payment providers with the necessary time to flag transactions made with stolen or compromised credit cards. During this period, the payment undergoes additional scrutiny, allowing for the detection of suspicious activities such as inconsistent billing and shipping addresses or unusual purchasing patterns. By delaying the delivery of eGifts, your business can significantly reduce the risk of fraudulent transactions being completed. This not only helps in minimising financial losses but also protects your customers and maintains the integrity of your gift card system.

Utilising Third Man Data from fraud databases and credit card fraud scores is pivotal in fortifying your defence against fraudulent transactions. Third Man Data provides a wealth of information by aggregating and analysing fraud patterns across multiple businesses and sectors, enabling you to identify and block known fraudsters more effectively. This shared intelligence is invaluable in spotting and mitigating threats that might otherwise go undetected. Complementing this approach, credit card fraud scores offer a granular assessment of transaction risk by evaluating multiple data points. For example, a transaction might be flagged if the postcode does not match the billing address, even if the CVV2 code and cardholder name are correct. By considering these discrepancies, your business can better assess the likelihood of fraud and take appropriate action.


By adopting these comprehensive strategies, your business can significantly reduce the risk of gift card fraud, safeguard your revenue, and uphold your reputation. Proactive fraud prevention not only protects your bottom line but also fosters customer trust and loyalty, ensuring long-term success in the competitive e-commerce landscape.


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