Digital gift cards are becoming big business for retailers. Global sales surpassed $300 billion in 2017 and are expected to reach nearly $700 billion by 2024*. And another recent survey by Blackhawk found that 55% of consumers indicate they purchase digital gift cards—and these numbers are increasing every year.
As their popularity continues to rise, it’s no wonder that many leading retailers have made digital gift cards a key component of their sales strategy. They’re convenient, increase revenue, and help acquire new customers, among many other benefits.
But for all of their advantages, digital gift cards present significant fraud risks for retailers as well. In fact, fraud attacks on digital gift cards range between 17% and 28%, depending on merchandise category. Our white paper, “Gift Cards: The Threats and Opportunities of Digital Delivery,” examines the risks and rewards of digital gift cards. In this paper you’ll learn:
- Why digital gift cards are an appealing target for fraudsters
- Common strategies scammers use to commit digital gift card fraud
- How the secondary market for gift cards impacts fraud
- Steps you can take to protect your retail business
Download the white paper now for the insights you need to avoid becoming a victim.
* New York City-based research firm Persistence Market Research