Gift card fraud remains one of the most pervasive and rapidly evolving threats in consumer finance, exploiting the $1.24 trillion global gift card market in 2025 — a value projected to nearly double to $2.31 trillion by 2030. This growth, driven by digital convenience and holiday demand (72% of U.S. consumers plan to buy gift cards this holiday season), has made gift cards a prime target for scammers. Fraud types include:
Chinese organized crime groups dominate cross-border schemes, blending retail crime with money laundering and causing hundreds of millions in global losses annually. Underreporting remains rampant — FTC estimates true losses are 2-3 times higher than reported figures due to embarrassment or unawareness. With e-commerce fraud at 14.7% of all FTC reports in 2024 and gift cards involved in 26.6% of cases, 2025's holiday surge (up 125% in March fraud pressure) underscores the need for vigilance.
For real-time updates, check FTC's Consumer Sentinel or AARP's fraud resources. Stay safe this holiday — gift cards are for giving, not scamming.
- Card Draining: Scammers tamper with physical cards in stores (e.g., scraping PINs under the silver strip) and drain funds post-activation, leading to nearly $3 million in losses in the first half of 2024 alone.
- Victim-Assisted Fraud: Impersonators (e.g., fake IRS agents or family emergencies) coerce victims into buying and sharing card codes via phone, text, or social media, accounting for the majority of reports.
- Account Takeovers and Online Exploits: Hackers access e-gift card accounts or use stolen credentials, with fraud pressure on online gift card purchases surging 91% year-over-year in 2025.
- Emerging Tactics: Deepfakes and AI-driven phishing have spiked, with U.S. deepfake fraud up 700% in 2025, often tied to gift card demands.
Chinese organized crime groups dominate cross-border schemes, blending retail crime with money laundering and causing hundreds of millions in global losses annually. Underreporting remains rampant — FTC estimates true losses are 2-3 times higher than reported figures due to embarrassment or unawareness. With e-commerce fraud at 14.7% of all FTC reports in 2024 and gift cards involved in 26.6% of cases, 2025's holiday surge (up 125% in March fraud pressure) underscores the need for vigilance.
Key Statistics
Updated with 2025 data and mid-year trends. Losses continue to climb, with projections materializing amid a 40% rise in U.S. scams. FTC reports show gift cards as the top scam payment method since 2018, with cumulative losses nearing $245 million through 2021 and accelerating thereafter.| Category | Statistic | Year/Period | Source |
|---|---|---|---|
| Total Losses | $217 million reported from gift card scams | 2023 (full year) | FTC |
| Total Losses (Partial) | ~$100 million from ~20,000 complaints | First half 2024 | FTC |
| Total Losses (Draining-Specific) | Nearly $3 million | First half 2024 | FTC |
| Prevalence | 26.6% of all fraud victims used gift/reload cards | 2018–2021 | FTC/Capital One Shopping |
| Prevalence | 1 in 4 fraud victims lost money via shared gift card numbers | 2024–2025 | FTC |
| Reports | Nearly 40,000 consumers reported gift card scams | First 9 months 2021 | FTC |
| Reports (Recent) | Over 1,000 phishing emails involving gift cards to IRS alone | 2019–2025 (avg. 200/year) | IRS |
| Market Context | U.S. gift card sales: $450+ billion projected | 2025 | VPNRanks |
| Global Market | $1.24 trillion total value | 2025 | Capital One Shopping |
| Unused Funds Risk | $23 billion unspent in U.S.; 43% of adults have unused cards | 2025 | Capital One Shopping |
| Growth Trend | Losses up 364% overall; 40% U.S. increase from 2024 | 2018–2025 | FTC/VPNRanks |
| Fraud Pressure | 91% YoY rise in online gift card fraud attempts | 2025 | Signifyd |
| Related eCommerce Fraud | 57.8% originates domestically; $9.4 billion in global chargebacks | 2025 | Capital One Shopping |
Brand-Specific Insights
Scammers prioritize high-liquidity brands for easy resale. FTC data (updated through 2025) highlights:- Target: Tops losses at $35 million (2018–2021 baseline); average $2,500 per victim, 30% over $5,000. 2025 projections: Average $2,750, 35% over $5,500.
- Walmart: Median loss $1,380 (second highest); frequent in draining schemes.
- Apple/Google Play/eBay: 13% of reports combined; digital cards vulnerable to phishing.
- Other Trends: Closed-loop cards (e.g., retailer-specific) targeted 80% more than open-loop (Visa/Mastercard). In Florida alone, residents lost $1 million+ locally in 2025.
Projections for 2025 and Beyond
As of November 2025, year-to-date losses align with pre-year forecasts of a 40% U.S. rise from 2024, driven by AI and social media (39% fraud rate from ads, up from 35%). Key outlooks:- Losses: Median per victim $1,500; 20% of cases $5,000+. Total U.S. could exceed $300 million, part of $10+ billion overall scam losses.
- Incidence: 37% of consumers to face fraud; 34% targeted by gift card requests.
- Digital Shift: e-Gift cards grow 2x faster than physical (to 2025), amplifying online risks. Global debit/gift card fraud hits $34 billion.
- Holiday Impact: November–December scams up 3x; 23% of Americans encounter drained cards (avg. $140 loss).
Trends and Emerging Issues
- Organized Crime: Chinese networks use trade-based laundering; ICE's Project Red Hook targets them, linking to national security threats. 57% of retailers saw scam increases (2022–2023, trend continues).
- Digital and AI Threats: 60% of merchants report more takeovers; deepfakes up 700%. Social media ads drive 46% of buys but 39% fraud.
- Legislative Response: 10 states (AZ, AR, FL, IA, KY, LA, NH, NC, TX, UT) enacted anti-fraud laws in 2025, creating offenses for tampering (e.g., FL: jail/fines up to felony). AARP secured 11 wins H1 2025, including employee training mandates; total financial security wins: 137 (71% YoY rise). 7 more states considered but stalled.
- Industry Innovations: Digimarc-Honeywell scanners (Nov 2025) detect tampering 3x better; Blackhawk Network's 2025 Fraud Report emphasizes AI prevention.
- Consumer Impact: 34% targeted; elderly hit hardest (e.g., FL's $1B+ internet scam losses). Only 50% recognize social ad risks.
Prevention Tips
- Purchase Smart: Buy from secure spots (behind counters) or issuer sites; inspect for tampering (e.g., loose packaging, scratched PINs).
- Verify Immediately: Register cards online; check balances post-buy. Keep receipts for refunds (up to 100% recoverable if reported fast).
- Spot Red Flags: Never pay "emergencies" via gift cards — government/businesses don't. Hang up on unsolicited demands; verify independently.
- Tech Safeguards: Use credit cards for buys (better protections); enable 2FA on accounts. Retailers: Train staff to flag phone-distracted buyers with multiple cards.
- Report Promptly: Contact issuer (e.g., Amazon: 1-888-280-4331); file at ReportFraud.ftc.gov. Local DA/IRS for phishing. FTC's toolkit aids businesses in alerting customers.
For real-time updates, check FTC's Consumer Sentinel or AARP's fraud resources. Stay safe this holiday — gift cards are for giving, not scamming.
