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Innovative anti-fraud solution keeps gift card thieves on the outs for leading national brand

The Challenge:

For a leading national brand, gift cards are big business. Unfortunately, they were also a big source of fraud: thieves were replicating bar codes of unsold gift cards and then using the codes once the cards were purchased by other individuals. Using the company’s interactive voice recognition system, these thieves could determine if the cards had been activated and then use the forged codes at self-service checkouts. Seeking to curtail these illegal activities, the retailer engaged DCM.

The Solution:

Leveraging our extensive experience in gift card printing and custom loyalty execution, DCM developed an innovative method to stop the fraudulent individuals’ methods. By covering the bar code with a tear-away tab that is only removed by the cashier at the time of purchase, we could ensure that the code was scanned solely for the actual purchaser. If a tab had already been removed, the card would be invalid for sale.

We also added high-adhesive glue around the card carrier, preventing opening without visually damaging the carrier. Once again, if damage occurred, the card would not be sold. Furthermore, we added a unique PIN to the card covered by a scratch-off coating. The PIN is required in order to obtain the card’s balance.

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