Some local U.S. Postal Service officials have recently
The spotlight placed on the dangers of putting gift cards and other valuable items in the mail could nudge more U.S. consumers to use digital gift cards, which still lag behind physical gift cards in total sales.
U.S. consumers plan to buy up to 20 physical gift cards and 16 digital gift cards this year, according to a survey gift card giant Blackhawk Network conducted recently among 2,000 consumers. Respondents plan to spend 18% more on gift cards in 2022 than in 2021.
Digital gift card sales are on track to surpass physical gift card sales within the next several years. Physical gift cards are growing at an annual rate of 9%, while digital gift cards are growing at a compound annual growth rate of 26%, according to industry research compiled by CardCash, a gift card management site.
E-commerce sites drive the most digital gift-card purchases, with 62% of consumers surveyed opting for digital gift cards purchased online, but in most other retail channels consumers still prefer giving physical gift cards. About 80% of consumers prefer giving physical gift cards for restaurants, while 75% prefer physical cards for mass merchandisers, along with Mastercard- and Visa-branded gift cards, Blackhawk's survey found.
Criminals clearly are aware of the persistent popularity of physical gift cards, which many people still mail to friends and relatives.
In a trend that accelerated during the pandemic when the government mailed more aid checks and unemployment benefits to consumers, criminals are targeting postal collection boxes in some regions. Local USPS
The Department of Justice last month said a former USPS
Such thefts by postal workers are relatively rare, though, said Frank Albergo, president of the Postal Police Officers Association.
The biggest exposure for gift cards and checks stolen from the mail is primarily from collection boxes around large cities where security has shifted as the Postal Inspection Service has steadily reduced the number of postal police officers on patrol. Staffing cuts in 2020 reduced the force by about 20%, so there are now about 425 postal police officers, including supervisors, compared with 1,000 who were on duty a decade ago, according to Albergo.
Postal police officers since 2020 also are restricted to patrolling inside postal facilities instead of in neighborhoods, increasing the exposure of many postal collection boxes to risks, Albergo said.
"Criminals have stolen the [mail carrier] keys to many mail collection boxes and in some cases they rent them out to other criminals by the hour," Albergo said.
The Retail Gift Card Association said it's collaborating with law enforcement to track gift card theft and fraud, and advises consumers to use trackable shipping methods when sending physical gift cards. The organization is also advising consumers worried about theft to use digital gift cards protected by secure email or mobile programs that are password-protected.
