Cybercrime and organized retail crime continue to challenge the integrity of global retail and payment ecosystems. At the 2025 International Card Manufacturing & Personalization EXPO, industry leaders came together with a unified goal: to stop it.
The high-impact panel discussion, “Addressing Gift Card Fraud Through Industry Collaboration,” brought together experts from top brands, distribution networks and technology providers. Moderated by Karen Brooker, Vice President of Growth Strategy at Marketing Card Technology (MCT), the session featured senior leaders from Blackhawk Network, InComm Payments, Best Buy, McDonald’s and Pack-Smart—each contributing key perspectives on the evolving threat landscape and how the industry must respond.
The Escalating Threat
Gift cards have become essential to retail, loyalty and digital commerce. Unfortunately, their popularity also makes them a prime target for fraudsters. From increasingly sophisticated tampering operations to the resale of stolen goods on global marketplaces, criminals are exploiting both open-loop and closed-loop gift card systems.
A scheme known as “gift card tampering” has emerged as a major concern. The multi-step operation includes:
- Takers stealing gift cards from store displays.
- Tampering experts removing or opening the gift card package, stealing the sensitive data from the cards and then reassembling the packages with either the same cards/data or alternative cards/data, taking steps to hide the fact that the card has been compromised.
- Placers reintroducing the cards back onto store displays.
- Checkers monitoring activation using merchant platforms or balance inquiry tools.
- Acquirers purchasing high-value merchandise using the tampered card data.
- Senders exporting the goods for resale on international markets.
This operation is coordinated, fast-moving and geographically dispersed—often targeting large retailers along major U.S. highways.
The criminal behavior is evolving and disproportionately impacts brands that sell high-value goods that can be sold overseas.
Project Red Hook: Law Enforcement Joins the Fight
To counteract this growing threat, Homeland Security Investigations (HSI) launched Project Red Hook in early 2024.
This national initiative aims to disrupt organized crime groups behind gift card fraud, connecting dots across federal, state and local jurisdictions.
Since its launch, Project Red Hook has resulted in more than 160 arrests and 500 leads, but challenges persist. Chief among them is the inconsistency in state laws and the complexity of prosecuting cases that often fall into legal gray areas.
Sixteen states are currently advancing gift card prosecutorial legislation, with nine more having already enacted it into law.
This legislation criminalizes unlawful receipt and use of gift card redemption information and victim-assisted fraud schemes.
“The industry has been actively developing innovative packaging solutions and continues to emphasize innovation while supporting prosecutorial efforts,” said Cara Renfroe, SVP Global Operations & Transformation, Blackhawk Network.
Innovation Key to Combating Gift Card Fraud
One of the most critical tools in the fight is the combination of technology and packaging innovation.
“Fraud prevention is no longer a siloed effort; it demands collective intelligence, scalable technology and responsive legislation,” said Derek Dlugosh-Ostap, Executive Chairman of Pack-Smart Inc. “This panel is not just about raising awareness—it’s about driving meaningful action to safeguard the future of the gift card industry.”
As the panel emphasized, staying ahead of fraud requires more than reactive measures. It demands innovation, education and foresight.
“Combatting fraud requires not only innovation, but also ongoing engagement,” said Chanda Wicker, SVP of Global Production Services at InComm Payments. “As our technological and physical tactics evolve, it is essential for all of us to maintain regular contact and collaborate to stay ahead of emerging threats.”
From law enforcement and policy makers to card manufacturers and technology providers, every stakeholder has a role to play. And when those roles align through structured collaboration, the industry becomes more resilient, more secure and more trustworthy.
Brooker noted, “Ultimately brands need to make their own decisions about their gift card program based on their own business goals, risk profile, legal interpretations, etc. The industry is not promoting ‘standards’ or publishing legal interpretations.”
Why ICMA Membership Matters
As ICMA celebrates 35 years in 2025, the association remains committed to supporting the card manufacturing industry by providing members with the tools they need to thrive.
Beyond marketing solutions, ICMA also offers valuable educational opportunities, including Advanced Card Education (ACE) training, and the Card Manufacturing & Personalization EXPO, the association’s largest event.
By participating in ICMA’s many programs, members gain the ability to shape the future of the industry while enhancing their brand’s presence across multiple channels.
Whether it’s contributing articles to Card Manufacturing, presenting a webinar or attending a high-profile industry event, ICMA membership offers unparalleled opportunities to network, learn and grow.
For card industry professionals looking to stay ahead in 2025, leveraging the marketing resources and industry recognition offered by ICMA is a proven strategy for success.
Learn more about the benefits of ICMA membership.