The Perils of Gift Cards: What Loyalty Program Members Need to Know (2025 Update)
Introduction
Gift cards remain a popular reward and gift, but new risks have emerged in 2025. Digital and physical gift cards are now targeted by sophisticated scams, fraud is rising, and regulatory protections are still evolving. This guide covers the latest dangers, how loyalty programs use gift cards, and how to protect yourself and your points.Table of Contents
- Why Gift Cards Are Popular in Loyalty Programs
- New Risks and Scams in 2025
- Regulatory Changes and Consumer Protections
- Loyalty Program Integration: Pros and Cons
- Tips for Safe Gift Card Use
- FAQ
- Conclusion
1. Why Gift Cards Are Popular in Loyalty Programs
- Instant, flexible rewards for members
- Easy to redeem and use for a wide range of purchases
- Digital gift cards can be delivered instantly via email or app
- Appeal to both givers and recipients
2. New Risks and Scams in 2025
- Phishing and QR code scams: Fraudsters send fake emails or texts with links to claim or redeem gift cards, stealing your info or points.
- Account takeovers: Hackers target loyalty accounts to redeem points for gift cards, then resell them.
- Fake websites and social engineering: Scammers create lookalike sites or impersonate support to trick you into revealing codes or credentials.
- Physical card tampering: Thieves scratch off PINs in-store and monitor balances, draining cards as soon as they're activated.
3. Regulatory Changes and Consumer Protections
- Some provinces have introduced new rules (expiry bans, fee limits), but protections vary widely.
- Most gift cards still lack robust recourse if lost or stolen.
- Always check the terms and conditions for your province and retailer.
4. Loyalty Program Integration: Pros and Cons
- Pros: Easy redemption, instant rewards, wide choice of brands.
- Cons: Gift cards often offer lower value per point than travel or merchandise. Once redeemed, points are gone—even if the card is lost or stolen.
5. Tips for Safe Gift Card Use
- Only buy from trusted sources (official retailers, not third-party resellers).
- Register your card if possible, and use it soon after purchase.
- Be wary of QR codes and links in emails or texts.
- Monitor your loyalty accounts for unauthorized redemptions.
- Compare redemption value—sometimes gift cards are a poor use of points.
- Keep receipts and document card numbers in case of issues.
6. FAQ
Q: Are digital gift cards safer than physical ones?A: Both have risks—digital cards are vulnerable to phishing and account hacks, while physical cards can be tampered with in-store.
Q: Can I get my points or money back if a gift card is lost or stolen?
A: Usually not—most programs and retailers treat gift cards as cash.
Q: Are gift cards a good use of loyalty points?
A: Sometimes, but travel or merchandise often offer better value per point.