Posted by admin on Apr 23, 2010


In the expanding world of ecommerce credit card fraud, here’s an interesting scam.

You might have seen sites offering gift cards for a discount.  You probably figured it was way for folks to pocket some money by simply by selling a gift card they did not want.  Sounds innocent, right?

Instead, a cybercriminal using stolen credit card information, buys a gift card.  The gift card is then sold through a gift card site, auction sites, Craig’s List or other sites.

As a result, the cybercriminal has successfully launders or fences the stolen money, which was in the form of the stolen credit card information.

Billions of dollars of gift cards are sold every year.  Gift cards outsold regular merchandise during last year’s Christmas season.  Gift cards are a perfect vehicle for laundering money because the cards are anonymous and are not traceable to a particular person.

Certainly there are some gift cards that are legitimately resold.  But lots of the resold cards represent quick cash for internet criminals who move quickly from victim to victim and escape with no trail into cyberspace.

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