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April 8, 2024

Gift cards have long been a popular choice for gifting, with billions being spent on gift cards in Australia each year. However, alongside their popularity comes an unfortunate rise in gift card scams, in particular ‘card draining’, which wipes funds from prepaid gift cards before they are purchased or activated. 

As these scams continue to proliferate, it’s crucial to understand the threat and adopt effective strategies to combat them.  

Protecting yourself from physical gift card scams 

If you are shopping in-store, inspect the gift card before purchasing to ensure it hasn’t been tampered with. Avoid buying cards that have scratched-off panels, missing digits or exposed PINs. If you see it, report it to the shop owner. 

Whether you are buying the gift card for yourself or as a gift, keep the purchase receipt handy. This will come handy if you need to prove ownership or dispute any fraudulent activity. 

For businesses and consumers buying gift cards online, ensure you are buying from reputable retailers and legitimate gift card providers. At Rewards Come True, also part of the iGoDirect Group, delivering gift cards to our clients securely is a top priority. All our gift cards are delivered by express post via Australia Post or with a signature from a courier. We also give clients the option to add a two-factor authentication (2FA) based on the load value e.g. any card over $500 to ensure that their funds are secure before activation. 

Choose Digital Gift Cards for enhanced security 

Digital prepaid gift cards overcome the security challenges posed by plastic gift cards, which physically store sensitive information, such as card numbers, activation codes, and personal identification numbers (PINs). 

Using encryption and tokenisation technologies to safeguard sensitive data, digital gift cards encrypt its details so that they cannot be accessed by unauthorised parties. Additionally, tokenisation replaces the card’s primary account number (PAN) with a unique token, ensuring that the actual card number remains concealed, even during transactions. This dual-layered approach significantly reduces the risk of data breaches and unauthorised access. 

Furthermore, many digital gifting platforms such as True Rewards incorporate two-factor authentication (2FA) protocols when the recipient redeems their gift card via email and SMS. This authentication method requires users to verify their email and phone number before they can activate their gift card. The digital prepaid card is then added to their mobile wallet e.g. Apple Pay or Google Pay, which provides add an extra layer of protection against unauthorised access. 

Get Started

Digital gifts are rapidly growing to be the reward of choice for corporate and consumer rewards, promotions and cashback programs. Book a demo with our rewards specialists to find a solution for your business and learn more about ways which we can help you safeguard gift cards against fraudulent activities.  

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