Wednesday, November 20, 2013
The National Retail Federation recently predicted holiday gift card sales will reach $29.8 billion in 2013, an all-time high in total spending. Upon hearing the projection, ThreatMetrix, a provider of integrated cybercrime solutions, was quick to point out that criminals see gift cards as an increasingly lucrative target.
Following are three gift card schemes identified by ThreatMetrix as ones fraudsters will likely employ this holiday season:
“If merchants fail to put preventative measures in place to protect against gift card fraud, it can be one of the greatest sources of revenue loss for merchants,” said Carmen Honacker, Director of Customer Advocacy at ThreatMetrix, in a press release about gift card fraud. “Gift card purchases using stolen credit cards have become so prevalent that some retailers have resorted to ceasing online gift cards altogether and only accepting cash in-store for gift cards.
“However, retailers don't need to miss out on these revenue opportunities due to the risk of cybercrime. With effective strategies and technologies in place to differentiate between authentic and fraudulent transactions, retailers can continue selling gift cards via credit card transactions and drastically decrease fraud attempts.”
With the holiday season set to kick into high gear, discussing gift card fraud prevention strategies with merchants is one way ISOs and merchant level salespeople can add value to their clients and prospects – and solidify business relationships in the process.
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