How Retailers Can Prevent Gift Card Fraud
The UK gift card market was valued at £8.71 billion in 2025, according to GlobalData, a 24.7% increase since 2019. That growth reflects genuine consumer appetite, but it also means a larger pool of value sitting in open retail displays, often with minimal protection. The good news is that the most common form of gift card fraud is highly preventable, and the measures required are already commercially available.
Understand how the fraud happens
The large portion of gift card fraud follows a single well-documented method. Fraudsters approach a display stand, remove cards and record the barcode & pin area – concealing any signs of tampering before replacing the cards back on the shelf. Once a consumer purchases and activates a card, the fraudster receives a real-time alert, through a monitoring service or repeated balance checks, and drains the value before the intended recipient can use it.
This is why the exposed barcode is the primary vulnerability as it’s easy to access, not the card itself, and not the payment system.
Vulnerability sits within the barcode.
01. Start with the packaging
Secure packaging is the most direct and effective response to gift card draining. A carrier solution that conceals the barcode makes accessing vulnerable barcodes difficult.
To improve security further, consider using tamper-evident packaging. These solutions are designed to make any attempt to access, remove or manipulate a card clearly visible. If interference occurs before purchase, the packaging will show obvious signs of damage, allowing retailers to identify potentially compromised cards before they reach customers.
Whatever security solution you choose, ensure every unit is verified using automated inline camera inspection during production. This helps maintain data integrity, confirms that cards and packaging have been matched correctly, and identifies potential errors before products reach the shelf.
02. Consider a Layered Approach
Not every retailer requires the same level of security, when designing a gift card program, security measures should scale with your specific risk exposure and budget, moving across three distinct tiers.
An entry tier can focus on data deterrents, utilising low-cost barcode and dual-activation labels to add a digital layer of verification to standard cards. A mid tier steps up to visual concealment by introducing secure wraps that completely cover the card and its data on the shelf, significantly limiting fraudster access without requiring a full carrier redesign. Finally, a top tier provides total physical containment through a “burst-to-open,” tamper-evident design, sealing the card entirely so that any unauthorised access leaves unmistakable physical damage.
All of these solutions can be combined into a solution tailored to retailer requirements.
03. Train Your Team
Cashiers are the last human checkpoint before a compromised card enters a consumer’s hands. Staff trained to check for signs of interference including loose barcodes, resealed carriers or missing labels, can remove fraudulent stock before it is sold. This requires clear, brief guidance and a defined process for flagging and withdrawing suspicious cards. It does not require lengthy training programmes; it requires awareness.
04. Audit Your Display Environment
Where gift cards are displayed affects their vulnerability. Cards positioned in open spinner racks at low-footfall locations, away from staffed areas, present an easier target. Monitored locations, and regular stock rotation all reduce exposure. A simple periodic audit of display conditions, checking card positioning, identifying signs of interference, reviewing footfall patterns near displays, can identify risk before it becomes a claim.
05. Use Technology to Strengthen Traceability
Advanced Card Management Platforms enable instant full batch traceability by mapping gift cards to their production run, distribution route, and retail destination. If fraud is detected, this batch tracking allows immediate blacklisting of affected card ranges, significantly accelerating investigation timelines. Traceability doesn’t prevent the initial theft, but it can drastically limit financial exposure and speeds up incident resolution.
Find Out More
Fraud prevention does not require a wholesale overhaul of a gift card programme. It starts with the right packaging decision and builds methodically from there. To review your current programme and identify where the greatest risk sits, book a consultation with the Certus Card Group team.