InComm Payments has described a layered approach to gift card fraud prevention, combining packaging and transaction controls with retailer education and law enforcement cooperation. Senior vice president of fraud operations Rob Hadden outlined the work in a July 2024 interview.

Hadden said fraud tactics had become more sophisticated, including organised activity involving stolen card balances and package tampering. He described the company's response as covering the full card lifecycle, from physical security to activation and redemption.

The controls discussed included tamper-resistant packaging, detection of unusual activity, geolocation technology and round-the-clock monitoring. InComm said its teams used those signals to identify anomalies and respond as tactics changed.

Retail partners were another part of the process. The company described guidance on packaging, back-end monitoring and behavioural indicators, with retailer feedback used to refine controls. It also highlighted training and events such as its Gift Card Summit.

InComm said it cooperated with banking partners, merchants and law enforcement agencies, including the Department of Homeland Security, FBI, IRS, DEA and Secret Service. The interview connected information sharing with investigation and prevention across the industry.

For consumers, Hadden recommended inspecting packaging before purchase, keeping the receipt and including it when a card is given as a gift. He also highlighted scams in which someone impersonates a trusted authority and demands payment through gift cards.

The interview emphasised reporting a card problem promptly so the relevant team could investigate with the purchase information available. InComm reported reductions in fraudulent activity but did not publish a percentage or detailed measurement period in the interview.