Now that there is a gift card fraud

I just heard about this the other day. It's too bad, because so many of us have used gift cards in the past as a solution for those hard-to-buy-for people. I guess we'll have to resort back to cash. I don't understand how they're getting away with this, though. I thought the magnetic stripe had to be swiped in order to activate the cards.

Gift card fraud is very rare because without the pin number off of the giftcard it is useless online. The main fraud comes by someone stealing a credit card then buying a bunch of gift cards before the card is cancelled. If you are really owrried about it, just check to see if the covering on the pin has been scrached off before purchasing a gift card.