Basics

Gift card fraud, often referred to as ‘victim-assisted fraud,’ has become a significant revenue stream for some organized retail crime networks, according to law enforcement and industry reports. Far beyond simple shoplifting, these groups are structured criminal enterprises that also engage in cargo theft, large-scale scams, and cross-border resale schemes. Although revenue loss is significant, gift card fraud does not just cause financial damage to retailers. Organized crime groups use these scams to directly steal from families and seniors. Additionally, workers and consumers face heightened security risks in stores. These actions may contribute to broader impacts, including store closures, higher prices, and reduced access to goods in some communities. This Basic outlines how organized networks commit gift card fraud, details government and private-sector responses, and discusses proposed legislation to strengthen federal coordination.