Buying Gift Cards With: Stolen Credit Cards

: Fraudsters use stolen credentials to buy digital gift cards. They often use bots or "bulk-buy" tactics to obtain as many cards as possible before the stolen credit card is flagged and blocked.

: Some criminals take physical cards from retail racks, remove the preprinted numbers, and emboss them with stolen credit card information. They then damage the magnetic stripe so a cashier must manually "key in" the transaction, effectively using the stolen credit card as if it were the gift card. buying gift cards with stolen credit cards

The scale of this fraud is significant, affecting millions of consumers and leading to massive merchant losses: Using Stolen Credit Cards to Buy Gift Cards - Riskified : Fraudsters use stolen credentials to buy digital

: Stolen gift cards are typically used or resold on the same day they are purchased to stay ahead of bank disputes and chargebacks. Monetization and Resale They then damage the magnetic stripe so a

: Cards are sold on marketplaces or the dark web at a discount (often 60–80% of face value) for cryptocurrency or cash.

: Some use gift cards to make in-app purchases within their own apps or donate to specific streamers, eventually receiving a clean payout from the platform. Impact and Statistics

: Fraudsters use the cards to buy popular electronics (like iPads or iPhones) that can be easily resold for nearly 95% of their retail value.