Securing the future of gift cards: The fight against fraud

Delving into how gift card security has evolved in recent years and exploring possible future developments

The evolution of gift cards has transformed the way consumers give and receive, offering a versatile and convenient way to express thoughtfulness. However, this innovation has also given rise to a wave of sophisticated fraud.

As the popularity of gift cards continues to soar, so does the ingenuity of fraudsters seeking to exploit their physical vulnerabilities.

In markets like the US and Australia, gift card fraud is becoming increasingly sophisticated with fraudsters exploiting the physical vulnerabilities of gift cards, such as tampering with packaging or stealing card numbers. This has prompted the need for innovative security solutions to protect consumers and businesses from significant financial losses.

At the heart of this issue is the need to reimagine the security of physical gift cards. At Thames Technology, we have embraced this challenge, collaborating with partners to enhance security in gift card solutions.

Strengthening gift card security

Our M6, CR80 and secure pack products incorporate tamper-evident designs and robust authentication protocols to guard against fraud. These features make it significantly harder for criminals to manipulate or misuse gift cards at any stage of the purchase or activation process.

To ensure our solutions meet the highest standards, Thames Technology aligns with the guidelines outlined by The Gift Card & Voucher Association (GCVA), BrancheVereniging Cadeaukaarten Nederland (BVCNL), and Prepaid Verband Deutschland (PVD). These guidelines emphasise:

Adjusting packaging to ensure the card number is not legible. For example, using a security strip that covers the card number, which can only be removed during activation.
Incorporating unique authenticity features within the scratch layer to provide an additional layer of protection against tampering and duplication.

These measures have been incorporated into our secure gift card packaging solutions including CR80, M6 and secure packs.

Our extensive efforts reflect our commitment to staying one step ahead of emerging fraud tactics by embedding best practices into our products. This not only reduces the risk of fraud but also offers increased protection and peace of mind for both businesses and consumers.

Looking to the future of gift card security

In today’s increasingly digital world, retailers and other businesses may consider a gift card solution that incorporates digital security features in order to combat gift card fraud. Through collaboration with our sister company Paragon ID Australia, Thames Technology manufactured the first-ever digitally enabled physical gift card with Near Field Communication (NFC) Data Exchange Format (NDEF) capability.

This breakthrough technology redefines how we think about gift card security, digitising security processes to eliminate the risks associated with physical tampering or counterfeit cards.

With NFC-capable cards, consumers can verify a gift card’s validity by simply holding it near their smartphone. This process provides an instant notification confirming the card's authenticity.

This added digital protection eliminates the potential for fraudsters to access or alter the card’s details prior to purchase, ensuring that the consumer’s funds remain secure.

As fraud attempts become increasingly sophisticated, the gift card sector must embrace innovation to stay ahead.

At Thames Technology, we are committed to partnering with forward-thinking clients to develop solutions that not only meet the needs of today’s world but also anticipate the challenges of tomorrow.