06/10/2026
Gift cards are about to be one of the busiest things in your store, and the easiest thing to buy with someone else's card.
Think about what disappears when the order is a gift card. No shipping address to check. No delivery window to cancel inside. No package anyone can intercept. The balance goes live the second the order clears and gets spent or resold within minutes. The dispute shows up weeks later, so you refund the money and lose the value on the same order.
Riskified puts gift card segments at around four times the risk of physical goods, with fraudulent buyers clustering between 11 and 50 cards an order.
Most teams answer this with a volume rule. Too many orders from one address, block it. That rule hits the company buying 200 cards for its staff and does nothing to a ring spreading orders across hundreds of home connections through residential proxies.
What still works is looking at the connection behind the order. IPGeolocation.io's IP Security API scores each one from 0 to 100 and tells you whether it is a VPN, a proxy, a residential proxy, a Tor exit or a privacy relay, who runs it, and when that address was last seen. Corporate gateways are marked separately, so your biggest business customer is not treated like an anonymizer.
Worth doing before the season starts: run the last 90 days of gift card orders through it in one go and see which rings are already sitting in your data.
https://ipgeolocation.io/ip-security-api.html