Fortunately, retailers don’t have to tackle cybercriminals alone this holiday season. One of the most effective ways to protect gift card transactions and user accounts this holiday season and beyond is by leveraging a global repository of fraud data to differentiate between authentic and fraudulent transactions. Retailers can collaborate with other businesses to share information about accounts, devices and online personas involved in fraudulent activities – escalating any transactions from these sources to a higher risk category and requiring additional screening.
Leveraging a global repository of fraud data also helps retailers strike a balance between implementing effective cybercrime prevention strategies and interfering with the customer experience. By differentiating between low and high risk transactions, retailers can assure accounts and gift cards are protected without making trusted customers face arduous authentication steps.
The gift card challenge will linger long after the last gift is unwrapped this year. Gift cards are a popular year-round vehicle for fraud. The good news is that any protections retailers and other businesses put in place for the holiday season will protect against potentially fraudulent transactions year round.