In2016, the gift card industry in the US alone was worth $127 Billion,and by 2018, the market is expected to reach $160 billion – withexpansion primarily driven by an astonishing 200% annual growth indigital cards. For retailers, the benefits of sellinggift cards extend well beyond the initial revenue. The purchase ensures afuture shopping trip, and when redeeming gift cards, customers spend an average of 20% more than the value of the card. Considering the widespreadpopularity of gift cards (93% of US consumersreceive or give a gift card every year!) this product offering seems like ano-brainer. Indeed, in addition to retailers selling gift cards for their ownstores, demand is encouraging card-only merchants (like giftcards.com) and onlinepeer-to-peer secondary gift card marketplaces to enter the market.
But the same flexibilitythat makes gift cards such an appealing present also makes them a favoritetarget for fraudsters. This infographic from Riskified explores CNPfraud patterns in the online gift card market, including the rate of fraudattacks in digital vs plastic cards, which brand-specific gift cards are morelikely to be targeted by fraudsters, which online holidays see spikes in giftcard fraud, and more. The insights in the infographic were drawn from our morein-depth report, which can be downloadedfor free here“
