Gift Card Fraud Prevention Methods & Solutions for 2026
Blog post from Datadome
Gift cards offer numerous benefits to businesses by increasing store traffic, enhancing loyalty programs, and satisfying customers, while also providing gift-givers and recipients with convenience and flexibility. However, they are increasingly targeted by cybercriminals, making gift card fraud a significant issue; the Federal Trade Commission reported $212 million in losses from scams involving gift cards and prepaid cards in 2024. The global gift card market, valued at $1.29 trillion in 2024 and projected to reach $5.22 trillion by 2034, presents a lucrative target for attackers who employ automated bot networks for fraudulent activities such as card cracking and laundering stolen credit card funds. These AI-driven attacks not only lead to financial losses and chargebacks but also degrade website performance and strain merchant infrastructure. To combat these issues, businesses need to implement comprehensive cyberfraud protection measures that can detect and block malicious bot traffic while ensuring a seamless experience for legitimate customers.
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