Merchants/Businessman/Traders and Customers are facing an entirely new set of problems when it comes to Trade and Commerce in 2021. Though COVID-19 has pushed many companies out of business and pushed others into primarily online roles. Likewise, consumers have spent their time shopping online more and more. 

What do you mean by Gift Card Fraud?

Gift card fraud can range from physical theft to cloning to exploiting programming errors on the merchant site. While the approach of attack is very similar to what is seen with credit card fraud, but gift card fraud is less widely reported. 

With the increase in online shopping, there are an increase in Card-Not-Present (CNP) transactions, which makes Gift Card Fraud that much easier. Whether it is through a stolen card number or some other type of fraud, more fraudsters were able to leverage gift cards for their crimes. 

What are the common types of Gift Card Fraud exist that leads to Cyber Crime? 

1.  Refund Fraud: If a customer ever wants to return a product and asks to have it refunded to a gift card, watch out. It could be part of a conspiracy to extract some untraceable funds from a stolen credit card. Then these fraudsters use these stolen card number to make an online purchase, then send it back for a refund on their Gift Card. Finally, the true owner will report it and request a chargeback, but the fraudster having plenty of time to spend or sell the Gift Card Funds.
2.  Number Theft: Fraudsters can virtually print money for themselves by hacking into company gift card databases to steal card numbers and activation codes. It is done via brute force hacking methods, malware, or using phishing or social engineering attacks against company employees.
3. Buying Gift Cards with Stolen Credit Cards: The most widespread form of gift card fraud is also the simplest. Scammers basically use stolen credit card details to buy gift cards online and use or resell them before the merchant gets hit with the inevitable chargeback. 
4. Account Takeover Gift Card Purchases: When scammers gain access to a customer’s compromised store account, they may have free reign to make purchases with stored payment credentials, but often it is seen cyberattack will be discovered before it’s too late to call off the delivery.
5. Physical Gift Card Tampering: When you sell gift cards in open exchange locations, you’re open to a wide range of schemes that involve tampering with them. While there are various protections to escape this, as most of them are relatively easy for determined fraudsters to get around.

How can Online Legal India™ help you?

We have a concierge of legal teams who would provide you with technological aid as well as file a Consumer Complaint against Cyber Crime on Gift Card Frauds and would resolve your issue generated until your contentment. One can take active services like taking Legal Advice or issuing a Legal Notice on Cyber Crime with facts proves and statements. Our learned legal practitioner team will help you draft one legal notice and send across to the accused party.