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Types of Gift Card Fraud Packaging
Types of Gift Card Fraud Packaging
Types of Gift Card Fraud Packaging

Gift cards have become a gift-giving go-to staple, offering convenience and flexibility for consumers. However, with this growing popularity comes a rise in gift card fraud.  Fraudsters devise increasingly sophisticated methods to steal or tamper with gift cards, turning a well-intentioned present into a financial nightmare.

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The Deceptive Facade: Types of Gift Card Fraud Packaging

Fraudsters often target gift cards during transit or at retail locations. Here's a closer look at some common methods of gift card fraud packaging:

Fortress of Protection:  Gift Card Fraud Prevention Packaging Solutions

Fortunately, advancements in packaging technology offer effective solutions to combat gift card fraud. Here are some gift card fraud prevention packaging methods:

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Tampered Packaging
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Tampered Packaging

Fraudsters may tamper with the original packaging, resealing it after stealing the gift card PIN or value. This can be difficult to detect, as the packaging may appear legitimate at first glance.

Tamper-Evident Packaging
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Tamper-Evident Packaging

These packages utilize special seals or closures that demonstrate tampering if broken. This provides a clear visual cue to both retailers and consumers, deterring theft and alerting them to potential fraud.

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Tamper-Evident Labeling

Security labels with voiding features can be applied directly to the gift card packaging. Any attempt to remove the label will leave a visible mark, indicating tampering.

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Counterfeit Packaging
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Counterfeit Packaging

Sophisticated criminals create near-perfect replicas of legitimate gift card packaging, complete with logos and barcodes. These counterfeit packages may contain either no card or a card with a pre-drained balance.

Holographic Overlays and Security Printing
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Holographic Overlays and Security Printing

Embedding holograms and security printing into the packaging adds another layer of protection. These features are difficult to replicate and can readily identify counterfeit packaging.

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Packaging with Hidden Tampering Mechanisms
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Packaging with Hidden Tampering Mechanisms

Some fraudsters employ more elaborate techniques, installing hidden mechanisms within the packaging that allow them to access the gift card PIN or value without breaking the seal.

Unique Serial Numbers and Barcodes
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Unique Serial Numbers and Barcodes

Assigning unique serial numbers and barcodes to each gift card allows for better tracking and identification. Discrepancies between the packaging and card information can flag potential fraud.

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Shrink Wrap Swapping
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Shrink Wrap Swapping

Fraudsters may use heat guns or other tools to carefully remove the original shrink wrap from a legitimate gift card package. They then replace it with shrink wrap containing a stolen or deactivated card, making the tampering nearly undetectable.

Cold and Hot Glue Combination Seals
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Cold and Hot Glue Combination Seals

These seals provide a strong permanent bond making it nearly impossible to reseal the package after tampering without leaving visible evidence.

Beyond Packaging:  Holistic Strategies for Gift Card Fraud Prevention

Gift card fraud prevention extends beyond secure packaging. Here are some additional strategies to consider:

Secure Storage and Distribution

Gift cards should be stored securely throughout the supply chain to prevent unauthorized access.

Secure Storage and
                      Distribution
Employee Training
Employee Training

Retail staff should be trained to identify signs of gift card fraud packaging and verify the authenticity of cards before activation.

Consumer Awareness

Educate consumers about the risks of gift card fraud and advise them to purchase gift cards directly from reputable retailers, avoiding suspicious online deals.

Consumer Awareness
Online Verification Tools
Online Verification Tools

Many gift card issuers offer online verification tools that allow consumers to instantly confirm the validity and balance of their gift cards.

Working Together: Retailers, Consumers, and Issuers Unite Against Fraud

The fight against gift card fraud requires a collaborative effort. Retailers can implement secure gift card fraud prevention packaging solutions and train their staff. Consumers need to be vigilant and purchase gift cards from trusted sources. Finally, gift card issuers have a vital role to play by developing robust security features and offering consumer protection measures.

At PLI, we have invested in multiple cold glue machinery equipment to bring you the most advanced and innovative fraud prevention solutions. We are dedicated to our goals of protecting your business and your customers. We have on our pulse on the industry and collaborate with our partners to implement products and new advancements to effectively detect and deter fraud.


About Plasticard – Locktech International 

PLI is the largest Closed Loop Gift, Loyalty and Hospitality card manufacturer in North America. PLI has been in business for over 30 years, specializing in end-to-end card marketing solutions including card production, design, packaging, displays, consulting and fulfillment services and capabilities. PLI has three manufacturing facility locations including two in Las Vegas, NV and one in Asheville, NC.

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