Home Featured Report How Policymakers Can Prevent Gift Card Scams

How Policymakers Can Prevent Gift Card Scams

by Becca Trate

Gift card scams are on the rise. Scammers have relied on predatory tactics, emotional stories, and product tampering to steal nearly $450 million from unsuspecting Americans in the last three years alone, and the trend shows little signs of slowing. Consumers from all age groups, but especially older consumers, are burdened with heavy loss and little recourse if they fall victim to a gift card scam. Policymakers in the United States should expand the Electronic Fund Transfer Act (EFTA)—a law that establishes rights and responsibilities for a variety of electronic payment systems—to include stronger consumer protections for gift cards; encourage gift card issuers and businesses to introduce stronger security features for gift cards; address gift card fraud as an international issue; create more effective solutions; and launch a data-sharing pilot that increases information on scams and helps merchants and gift card issuers implement realistic solutions to prevent future scams.

Read the report.

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