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Stopping Gift Card Fraud Infographic

 In 2016, the gift card industry in the US alone was worth $127 Billion, and by 2018, the market is expected to reach $160 billion – with expansion primarily driven by an astonishing 200% annual growth in digital cards. For retailers, the benefits of selling gift cards extend well beyond the initial revenue. The purchase ensures a future shopping trip, and when redeeming gift cards, customers spend an average of 20% more than the value of the card. Considering the widespread popularity of gift cards (93% of US consumers receive or give a gift card every year!) this product offering seems like a no-brainer. Indeed, in addition to retailers selling gift cards for their own stores, demand is encouraging card-only merchants (like giftcards.com) and online peer-to-peer secondary gift card marketplaces to enter the market. 

 

 

But the same flexibility that makes gift cards such an appealing present also makes them a favorite target for fraudsters. This infographic from Riskified explores CNP fraud patterns in the online gift card market, including the rate of fraud attacks in digital vs plastic cards, which brand-specific gift cards are more likely to be targeted by fraudsters, which online holidays see spikes in gift card fraud, and more. The insights in the infographic were drawn from our more in-depth report, which can be downloaded for free here"  

Stopping Gift Card Fraud Infographic
 

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