Gift Card Fraud Prevention: 7 Essential Tips to Protect Your Balance in 2026

Gift card fraud has become one of the fastest-growing financial crimes worldwide. According to industry reports, losses from gift card scams exceeded $1.5 billion in 2025 alone. As digital transactions become the norm, criminals are finding increasingly sophisticated ways to drain gift card balances before legitimate owners can use them.

Whether you buy gift cards for personal use, gifting, or trading on platforms like INWISH, understanding how fraud works and how to defend against it is critical. This guide walks you through seven actionable strategies to keep your gift cards safe.

1. Purchase Gift Cards Only From Authorized Retailers

One of the most common fraud tactics involves tampered physical gift cards displayed on store racks. Scammers peel back protective stickers, copy PIN numbers, then reseal the packaging. Once a buyer loads funds onto the card, the thief redeems the balance remotely.

To avoid this, always buy from authorized retailers or directly from the brand's official website. When purchasing physical cards, inspect the packaging for signs of tampering such as scratched-off panels, loose adhesive, or damaged barcodes. Opting for digital gift cards through verified platforms eliminates this risk entirely.

2. Register Your Gift Card Immediately

Many gift card issuers allow holders to register their cards online. Registration links your card to your personal information, making it easier to dispute unauthorized charges or recover funds if the card is lost or stolen.

After purchasing a gift card, visit the issuer's website, enter the card number, and complete the registration process. This simple step creates an audit trail that can prove invaluable if something goes wrong later.

3. Never Share Gift Card Numbers Over the Phone or Email

A hallmark of gift card scams is urgency. Fraudsters often impersonate government agencies, utility companies, or tech support teams, demanding payment via gift cards. No legitimate organization will ever ask for gift card numbers as a form of payment.

If someone contacts you requesting gift card codes for any reason, treat it as a red flag. Hang up, delete the email, and report the incident to local authorities. Educating family members, especially older adults, about these tactics can prevent heartbreaking losses.

4. Use Gift Cards Promptly After Purchase

The longer a gift card sits unused, the greater the risk. Dormant cards are vulnerable to balance-draining schemes, and some cards may accumulate inactivity fees over time depending on the issuer's terms.

Make it a habit to spend or trade your gift cards soon after receiving them. Platforms like INWISH allow you to convert unwanted gift cards into cash or swap them for brands you actually use, reducing the window of vulnerability.

5. Monitor Your Gift Card Balance Regularly

Treat your gift cards like a bank account. Check the balance regularly through the issuer's website or app. If you notice any unauthorized deductions, contact customer support immediately.

Early detection is key. Most issuers have a limited window during which they can investigate and potentially reverse fraudulent transactions. Setting calendar reminders to check balances monthly is a simple yet effective safeguard.

6. Beware of Phishing Websites and Fake Balance Checkers

Scammers create fake websites that mimic legitimate gift card balance-checking portals. When you enter your card details on these sites, the criminals capture your information and drain your balance.

Always navigate directly to the official issuer's website rather than clicking links from emails, text messages, or social media posts. Look for HTTPS encryption and verify the URL carefully before entering any card information.

7. Store Digital Gift Cards Securely

Treat digital gift card codes like passwords. Store them in a secure password manager or encrypted note-taking app rather than leaving them in plain text emails or screenshots on your phone.

If you take a screenshot of a gift card code, delete it from your camera roll after saving it securely. Malware on compromised devices can scan image files for gift card numbers and redemption codes.

What to Do If You Suspect Fraud

If you believe your gift card has been compromised, act quickly. Contact the card issuer's fraud department and provide them with the card number, transaction history, and any evidence of tampering. File a complaint with the Federal Trade Commission at reportfraud.ftc.gov, and consider alerting your local law enforcement as well.

Quick action can sometimes result in a partial or full refund, especially if the fraud is reported within 24 to 48 hours of occurrence.

Final Thoughts

Gift card fraud is preventable when consumers stay vigilant and informed. By following these seven tips, you can significantly reduce your exposure to scams and enjoy the full value of every gift card you own. Platforms like INWISH add another layer of security by providing verified trading environments where both buyers and sellers are protected.

Stay cautious, stay informed, and never let a scammer turn your gift into their gain.