Gift Card Fraud Prevention
At PLI, we understand the severity of the business impact gift card fraud generates for our customers. We are committed and action-oriented to creating thought-led solutions to bring forth into the marketplace to support you and combat gift card fraud.
PLI continues to elevate its innovation to meet this continuously growing demand by investing in Cold Glue machinery equipment and providing high quality fraud preventative solutions for gift card packaging and security labels to help protect retailers.
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Interesting Facts
Gift card fraud is the most common form of fraud, with 26.6%* of victims indicating that money was taken using gift cards or reload cards.
23%* of consumers in the U.S. have given or received gift cards with no funds on them, and 54%* of these people were told that no refund or credit was possible.
57%** of the 177 retail brands participating in the National Retail Security Survey (NRSS) reported an increase in gift card scams from 2022 to 2023.
Furthermore, an analysis from the Federal Trade Commission’s Consumer Sentinel database found that gift card scams have led to a consumer loss of $148 Million** which also results in a huge loss to the retailers as a direct impact.
Security Labels
Security Labels provide an added protection layer to the gift card itself that is available in many different formats. We continuously work with our partners to establish a variety of options customized to fit your needs and goals – whether that’s based on type, cost, strength of tampering ability, and sustainable options.
We also collaborate with our partners to understand the latest trends and what’s currently evolving with trusted experts to craft the right products for fraud protection.
PLI is here to guide you to select the right security labels for enhanced protection and transparency.
Packaging
Packaging can be designed in obvious ways making it tamper evident to the retailer and consumer that the gift card packaging has been tampered with alerting to fraudulent activity right away.
We create and produce a range of Secure Pack styles with various pattern options such as Cold Glue, Perforations, Pull Tabs, Security Slits, and more to provide the utmost protection possible making it more difficult for fraudsters to get into, but to also catch it in time before an attempted purchase is made.
For example, the Pull Tab releases to expose the bar code, and the Security Slits no longer lay down flat as they have now become “fringes” revealing tamper evident features.
Adding these enhancements coupled with fully enclosing the product with Cold Glue provides a heightened and advanced security measure.
PLI is here to partner with you on the best design and style for your brand suited to your level of needs to combat this growing fraud concern together. Consult your local sales rep to discuss your right-size solutions.
Cold Glue Technique
What is the Difference?
Cold Glue is a chemical bond whereas Hot Glue is an adhesive bond. The chemical bond in Cold Glue provides a much stronger, permanent and secure bond to keep the gift card packaging closed.
The cold glue sealed package is designed to fracture revealing in an obvious way when the package has been opened, making the tampering apparent to both consumers and the retailer. Hot sealed packages are able to be opened by utilizing an oven, microwave, hairdryer, or X-Acto knife to access card data easily – which has been the common method used by fraudsters to gain access.
Plugged In
PLI is great about working with their partners to determine the best solutions for their needs.
We’ve all heard the saying: “You don’t need to outrun the bear; you only need to outrun the guy next to you.” This is true when it comes to deterring fraud in gift cards. There will be bad actors, and they will steal gift cards. You just need to be sure you are not the lowest hanging fruit.
This can be achieved through packaging design, making the data harder to get to, or by adding other layers of security – which is where Labels come in.
Labels can be added to the card to create a layer of security protecting parts of the data on the card. They can also be added to the pack as a layer between the fraudster and the activation code.
One great thing about Labels is that they can be modified relatively quickly and inexpensively to provide a quick change from what was being done previously. If you need to change the look of the pack, or if fraudsters have begun making counterfeits, changing the look or design of the label can be done with little difficulty.
Alec Doede
Technical Sales and New Products
*Source: Capital One Shopping
**Source: ACFE Insights