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Another issue regarding gift cards are the growing concerns from retailers and other businesses about what can be done to prevent gift cards from being exploited by fraudsters. Gift card information can either be stolen from their rightful owners by fraudsters or they can be purchased with stolen credit card information. In recent years, cybercriminals have increased their efforts to take advantage of fraudulent gift cards as they are simple to exploit with automated brute-force bot attacks. The most common form of gift card fraud is committed through the act of stealing card information for activated cards with an existing balance by attacking a retailer’s systems which store gift card data. Once a gift card has been compromised, the fraudster will then check the balance through online customer portals before using the funds or reselling on the secondary gift card market.
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From the purchaser’s point of view, a gift card is a gift, given in place of an object which the recipient may not need, when the giving of cash as a present may be regarded as socially inappropriate. In the United States, gift cards are highly popular, ranking in 2006 as the second-most given gift by consumers and the most-wanted gift by women, and the third-most wanted by males. Gift cards have become increasingly popular as they relieve the donor of selecting a specific gift. In 2012, nearly 50% of all US consumers claimed to have purchased a gift card as a present during the holiday season. In Canada, $1.8 billion was spent on gift cards, and in the UK it is estimated to have reached £3 billion in 2009,[needs update] whereas in the United States about US$80 billion was paid for gift cards in 2006. The recipient of a gift card can use it at their discretion within the restrictions set by the issue, for example as to validity period and businesses that accept a particular card.
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