: Some use gift cards to make in-app purchases within their own apps or donate to specific streamers, eventually receiving a clean payout from the platform. Impact and Statistics
The scale of this fraud is significant, affecting millions of consumers and leading to massive merchant losses: Using Stolen Credit Cards to Buy Gift Cards - Riskified buying gift cards with stolen credit cards
Criminals use stolen credit card data to purchase gift cards through several specific methods: : Some use gift cards to make in-app
: Cards are sold on marketplaces or the dark web at a discount (often 60–80% of face value) for cryptocurrency or cash. This converts the stolen credit line into a
: Scammers make a purchase with a stolen credit card and then return the item, requesting the refund be placed on a gift card. This converts the stolen credit line into a legitimate, untraceable store credit.
: Some criminals take physical cards from retail racks, remove the preprinted numbers, and emboss them with stolen credit card information. They then damage the magnetic stripe so a cashier must manually "key in" the transaction, effectively using the stolen credit card as if it were the gift card.