eGift card fraud is an incredibly fast-growing market. Whilst eGift cards may not be the largest part of your business, this type of fraudulent activity can range from physical theft to cloning to payment protection failures on the merchant side.
According to Kount’s eBook, eGift Card Fraud: The Gift That Keeps On Taking, outlines that consumer spent more than $650billion on prepaid cards in 2016.
Digital gift cards are growing at an exponential, averaging at an 200%, whereas physical gift cards have increase 6% in the past 12 months.
Fraudsters are known for targeting consumers during peak shopping times, such as Black Friday and around the festive period. Merchants need to be prepared to prevent fraudulent activity occurring during these busy periods. Retailers should also ensure that they are device neutral, allowing desktop, mobile and telephone transactions have the same multi-layered approach and ensure a two-factor authentication process.
The latest eBook by Kount outlines the best practices to fight eGift card fraud and how merchants and retailers can protect their gateways and infrastructures with technology.
For example, race condition, a concept known as taking advantage of the fact that browsers temporarily cache data during web transactions as money is transferred from one account to another, can access the data during the transaction. Businesses should require account registration additional data entries can slow down fraudsters and create additional friction for them and enable them to leave your site.
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