Digital gift cards have become a staple of modern gifting, employee recognition, and customer incentives. They’re fast, flexible, and eco-friendly, making them the obvious choice for both individuals and businesses. But with convenience comes vulnerability.
Fraudsters target digital gift cards because they act like digital cash. Once stolen or redeemed, the funds are nearly impossible to recover. According to the FTC, consumers reported over $228 million in losses linked to gift card scams in 2022, with Visa and Mastercard cards being the most common targets.
That’s why businesses and individuals must take fraud prevention seriously—and why platforms like Toasty Card have made it their mission to combine seamless gifting with bank-level security.
Fraudsters exploit both technical and human weaknesses when it comes to digital gift cards. Some of the most common tactics include:
What makes gift cards especially appealing to criminals is their anonymity and speed. Unlike bank transactions, gift cards don’t carry the same level of identity verification, and once the value is drained, tracing it back is extremely difficult.
This makes fraud prevention not just an optional feature—but a requirement for any trusted gift card provider.
Toasty Card stands apart from traditional providers and retail gift card racks by embedding security and fraud prevention into every stage of the gifting process. Here’s how:
Toasty Card ensures that every transaction is protected with bank-grade encryption protocols. Sensitive data such as card numbers, balances, and PINs are secured both at rest and in transit.
Unlike physical cards that can be tampered with on store shelves, Toasty Card’s digital cards are delivered instantly via secure email. This eliminates the risk of cards being skimmed or stolen before reaching the recipient.
Toasty Card uses artificial intelligence and machine learning to identify unusual purchase behavior—such as bulk orders from suspicious IP addresses or repeated attempts to guess card codes. These are flagged and blocked in real-time.
Every Toasty Card is activated instantly, reducing the window for fraudulent use. And if a card is lost or the email is mistyped, Toasty Card can reissue it at no extra cost—a huge advantage over traditional physical cards.
Toasty Card partners only with regulated banks and card issuers, ensuring that every Visa or Choice Card complies with strict financial and fraud prevention standards.
Together, these measures create a multi-layered defense system against fraud—something most generic gift card resellers can’t match.
Physical gift cards are notoriously vulnerable:
With Toasty Card, all of these risks disappear:
In short, Toasty Card ensures that digital gift cards are both more secure and more convenient than their physical counterparts.
Fraud prevention isn’t just about technology—it’s also about empowering users with safe practices.
By combining platform safeguards with user education, Toasty Card makes fraud far less likely to succeed.
Fraud tactics evolve constantly, and Toasty Card is preparing for the next wave by investing in:
Toasty Card’s vision is clear: a digital gifting ecosystem where fraudsters are shut out, and trust is built in.
Fraud may be growing across the digital gift card industry, but Toasty Card has proven that secure, fraud-resistant, and fee-free gifting is possible.
With its combination of bank-level encryption, AI fraud monitoring, instant card reissuance, and transparent pricing, Toasty Card protects both businesses and consumers.
Whether you’re rewarding employees, thanking customers, or simply sending a thoughtful gift, Toasty Card ensures your money goes where it should—safely into the recipient’s hands.
Not easily. Toasty Card uses bank-level encryption, secure delivery, and fraud monitoring to minimize risks.
It can be reissued instantly at no cost, unlike physical gift cards.
Yes—Toasty Card covers activation fees so the recipient always gets the full value.
Toasty Card provides analytics dashboards, fraud monitoring, and refund options to protect budgets.
Yes. Store-bought cards are vulnerable to skimming and theft. Toasty Card’s digital cards are encrypted, trackable, and easily reissued.
Toasty Card's Visa gift cards can be used in the US and Canada. For international use, they offer the Swype Global Mastercard with no conversion fees, making it secure and cost-effective globally.