Gift cards are becoming increasingly popular for sending money, purchasing, or transferring digital funds. This is because they are both user-friendly and quick. However, it’s essential to securely transfer gift cards to avoid fraud and ensure your funds reach the right person. As a result of the proliferation of online shopping and international payments – gift cards have emerged as a frequently used tool for conducting personal transactions and giving digital gifts.
On the other hand, the dangers have increased in tandem with their growing popularity. Scammers, fraudsters, and hackers are always looking for new ways to take advantage of existing vulnerabilities in the system. There are a number of possible risks associated with gift cards, including theft and gift card fraud, despite the fact that they offer a convenient service.
Why Gift Card Security Matters?
Gift Cards as Money Equivalents
In essence, gift cards are similar to money, making them more than just a means of gifting. Once they have been activated, they have real value, and they can be used for making purchases and payments or even transferred to another individual. To take advantage of the anonymity gift cards provide, con artists frequently target them.
This is because gift cards are frequently untraceable and can be spent in various ways. If a gift card is stolen and gets into the wrong hands, its value can be swiftly depleted, and it is frequently impossible to identify the person who stole it. Consequently, it is vital to secure your gift card transfers to prevent a loss of cash resources.
Common Gift Card Scams
Fraudulent activities involving gift cards have become alarmingly common. Here are a few of the most common scams to be aware of:
- Phishing Scams: Fraudsters may impersonate a well-known brand, government agency, or tech company through emails, phone calls, or text messages, asking victims to pay for fines, services, or fake charges with gift cards.
- Fake Tech Support Scams: A scammer might pretend to be a technician from a major company like Apple, Microsoft, or Amazon, telling you that your computer is infected or that you need to make an emergency payment via gift card to fix a supposed issue.
- Online Resale Fraud: In some cases, scammers may sell tampered or fraudulent gift cards online. These cards may have been reported as stolen or have been used up before reaching the buyer.
Read Also: Exploring Gift Card Payment Platforms: Which Ones Offer the Best Services?
Step-by-Step: How to Safely Send a Gift Card
1. Buy from Trusted Sources Only
One of the easiest ways to avoid fraud is purchasing gift cards from trusted and well-established platforms. Stick to:
- Major retailers like Amazon, Walmart, or Visa/MasterCard gift card sites.
- Authorized resellers with positive reviews.
Avoid third-party online marketplaces, which may have little to no buyer protection. These platforms can sometimes sell counterfeit or tampered cards.
2. Use Secure Payment Methods
Always use secure payment methods when purchasing gift cards. Credit cards or trusted digital wallets offer fraud protection and can be disputed if something goes wrong. Avoid paying with cash, cryptocurrency, or wire transfers, as these transactions are more complex to trace and recover if fraudulent.
3. Verify the Card Before Sending
Before sending a gift card to anyone, ensure that:
- The card is activated and holds the correct value.
- The PIN (if applicable) is covered and not scratched off.
- There are no signs of tampering on the physical card (e.g., opened packaging or missing seals).
If buying a digital card, check that the details match what was promised and that the card was delivered through a secure platform.
4. Protect Card Information
Never share your gift card number or PIN through unsecured channels. Sending sensitive information via email or text is risky because those messages can be intercepted.
Instead:
- Use encrypted apps or secure emails to send gift card details.
- Avoid sharing gift card numbers on public forums, social media, or unknown websites.
5. Send Through Encrypted Digital Channels
Always use official apps or platforms with encrypted communication if sending a digital gift card. Some options include:
- Official merchant apps like Amazon, Walmart, or iTunes.
- Encrypted email or SMS via services with added security.
Avoid sending screenshots or images of the card information, as these can easily be intercepted and gift card fraud.
6. Double-Check Recipient Details
Before you send any gift card, especially digitally, verify the recipient’s email address or phone number. Always confirm:
- For personal transfers, Double-check their details with them directly.
- For business payments: Validate the contact information via an independent source, such as their official website or known business channels.
See Also: The Most Popular Ways to Send Money to Family and Friends
Extra Measures for High-Value Transfers
1. Use Multi-Factor Authentication (MFA)
For added security, enable multi-factor authentication (MFA) on the platforms where you purchase or manage gift cards. Platforms like Amazon, PayPal, and Apple offer MFA, which requires both your password and an additional verification form (e.g., a one-time code sent to your phone) before allowing a transaction.
This extra layer of security can significantly reduce the risk of unauthorized access to your account.
2. Track the Transfer
Some platforms offer tracking features that allow you to monitor when a gift card is redeemed. If you’re sending a high-value gift card, opt for services that provide:
- Delivery confirmation
- Redemption alerts that notify you when the card has been used or opened
Tracking your transfer ensures that it reaches the recipient safely and reduces the chances of fraudulent activity.
3. Avoid Public Wi-Fi When Making Transfers
Public Wi-Fi networks can be a security risk, as hackers can intercept sensitive data sent over these unsecured connections. Always conduct gift card purchases or transfers on a secure, private network like your home Wi-Fi or a VPN service.
What to Do If Something Goes Wrong
1. Report Immediately to the Issuer
If you realize that a transaction has gone wrong or you’ve fallen victim to fraud, contact the gift card provider immediately. Some platforms may freeze or reissue the card if it has been reported as compromised.
Acting quickly can help prevent further misuse of the card’s balance.
2. Contact Your Bank or Card Provider
If you used a credit or debit card to purchase the gift card, and you suspect fraud, contact your bank or card issuer immediately. Many banks offer chargeback protection on fraudulent purchases made with credit cards.
3. Report to Authorities or Consumer Agencies
If you believe a scam has targeted you, you should report it to the relevant authorities. These include:
- FTC (Federal Trade Commission) in the U.S.
- The Internet Crime Complaint Center (IC3).
- U.S. consumer protection agencies.
Reporting helps prevent future scams and may assist in recovering funds.
Red Flags to Watch For
Be cautious of these common red flags that may indicate a potential scam:
- Urgent requests: Scammers often create a false sense of urgency, asking you to send gift cards immediately for fines, medical emergencies, or family issues.
- Just the card number and security code: If someone asks for only the gift card number and security code, it’s likely a scam. Legitimate transactions require more information (such as verification or delivery confirmation).
- Unknown sellers or buyers: Be wary of deals that seem too good to be true, such as steep discounts or offers promising double returns on gift card purchases.
Conclusion: How to Securely Transfer Gift Cards
It is important to handle gift cards with caution, just like you would with cash. This is because they are a quick and simple way to send money or make purchases. If you follow the actions indicated in this guide, you will be able to considerably reduce the likelihood of being a victim of fraud. These steps include purchasing from reliable sources, using secure payment methods, and confirming card information.
Looking for a brighter and safer way to send digital gift cards or money? Beem offers a secure, flexible solution that fits your financial schedule. With Beem’s Send Now, Pay Later™, you can send funds instantly—even if your next paycheck hasn’t arrived yet.
Remember that you should handle your gift cards as if they were currency. Protect them like you would protect physical money, and always exercise caution when disclosing card details. Digital gift cards can be a very useful tool. However, it is necessary to use them responsibly to ensure that they are utilized in a secure and safe manner.
