Criminals use stolen credit card data to purchase gift cards through several specific methods:
: 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.
Once a gift card is acquired with stolen funds, it is converted into "clean" money through:
: 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
: Scammers make a purchase with a stolen credit card and then return the item, requesting the refund be placed on a gift card. This converts the stolen credit line into a legitimate, untraceable store credit.