Stopping Gift Card Fraud
A group known as “Jingle Thief” has been using phishing tactics to access gift card systems, subsequently issuing cards for resale and personal gain.
According to a report by cybersecurity firm Palo Alto Networks, the Jingle Thief group targeted cloud infrastructure of retail and consumer services companies. Upon gaining entry, the criminals search for methods to issue new gift cards while working hard to cover their tracks.
The rise in gift card fraud can be attributed to the increased prevalence of prepaid products, both as gifts and for personal use. These cards are easy to redeem and require minimal personal information from buyers, making it difficult for authorities to track misuse.
Addressing Gift Card Scams
Regulators have taken steps like Maryland’s new law aimed at curbing gift card draining scams. This legislation mandates secure packaging of cards, requires merchants to register with the state, and provides employee training to prevent fraud.
The success of gift card scams highlights their widespread use during holidays when demand is highest. The Jingle Thief group, named for their increased activity around Christmas, exemplifies this trend by exploiting vulnerabilities in systems to steal funds.
