Recognizing eGift Card Fraud

egift card purchased
An eGift card is purchased

through stolen credit cards or account takeovers

egift card sold
eGift card is sold

to an unsuspecting customer

item bought
An item is bought

with the bad eGift cards and is shipped to the customer’s address

chargeback issued
Chargebacks issued

for the original eGift card purchase and the item that was sold. Merchant suffers associated penalties, loss of merchandise, brand reputation damage

eGift Card Fraud Challenges

eGift cards have the highest fraud attempt rates because purchases made with eGift cards are difficult to track. Most organizations lack systems to prevent fraud as fast as the cards are stolen. eGift card fraud can impact your business and result in chargebacks, operational costs, and dollar losses from stolen goods and services, as well as impact to brand reputation.

950 Million

Learn more about eGift card fraud and how Kount can prevent it.

Download the eGift Card Use Case

eGift Card Fraud Attacks

eGift cards can be fraudulently obtained in many ways. Credit cards can be stolen, accounts can be compromised, and legitimate customers can get pulled into unsuspecting fraud schemes.

stolen card
Stolen Credit Cards

Stolen payment data is used to purchase a gift card and email it to a legitimate email address.

triangulation
Triangulation Fraud

A discounted, high-demand item is advertised in a marketplace. A consumer buys the third-party item and it is fulfilled using stolen credit cards.

account takeover
Account Takeover

Stolen account credentials are used to take over a customer account. Stored payment methods are used to purchase eGift cards.

stolen egift card
Stolen eGift Cards

Stolen eGift cards are sold on marketplaces at a discount. When the buyer tries to redeem the gift card, it may not work.

Kount plays an important role in supporting our multi-layered approach to fraud prevention.

Tyler Roye, CEO, eGifter

Kount’s eGift Card Fraud Prevention Solution

A multi-faceted solution that evaluates multiple points of potential fraud must go hand-in-hand with an eGift card initiative. Kount focuses on identifying good customers so that you can easily approve and process purchases in real time.

device risk
Device risk assessment

Identifies high risk devices, or high-volume activity from a small number of devices

digital identity
Digital identity signals

Indicate the relationship between email reputation, age, and history, as well as physical identity attributes

kounts AI
Kount’s AI

Combines supervised and unsupervised machine learning to generate a score that indicates risk or unusual activity

business policies
Business Policies

Can be built around desired business outcomes, such as special event promotions and tracking shipping details

Learn more about eGift card fraud and how Kount can prevent it.

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