Apple’s upcoming mobile operating system, iOS 27, will enable users to redeem Apple gift cards by tapping them on a compatible iPhone, MacRumors reported Wednesday (Sept. 9).
The iPhone will scan a security chip in Apple’s gift cards to verify that the card is authentic and unspent in an attempt to reduce scams, the report said, citing MacRumors contributing researcher Aaron Perris, who found the new feature in code.
Apple did not immediately reply to PYMNTS’ request for comment.
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PYMNTS reported in November 2023 that gift cards have always been riskier than other payment form factors. Gift cards are an attractive target for fraudsters because the cards are easily monetizable, provide a level of anonymity and generally have no chargeback options, which makes it virtually impossible to recover funds.
In July 2024, PYMNTS reported that gift card scams were in the news as federal agencies issued warnings about the scams’ proliferation and as Maryland enacted a law aimed at stopping an iteration of gift card scams called card draining. The Federal Trade Commission said at the time that in 2023, gift card scams led to $228 million in losses, with a median individual loss of $500. The FTC said Apple was one of the most impersonated companies when it came to scam reports involving gift cards.
It was reported in January 2024 that Apple agreed to settle a lawsuit that accused the company of allowing scammers to exploit its gift cards and retaining stolen funds. The lawsuit alleged that scammers would contact victims and persuade them to buy Apple gift cards to cover various expenses and then provide the cards’ codes to the fraudsters. It also alleged that Apple would retain 30% of the stolen funds as a commission for converting the stolen codes into dollars.
Apple’s iOS 27 is set to launch Monday (Sept. 14), according to the company’s website.
PYMNTS reported Wednesday (Sept. 9) that the headline reveal of Apple’s annual fall Surprise and Shine event was the company’s first foldable phone, the iPhone Duo.
Speaking of that and other iPhone models, Apple CEO John Ternus said during the event: “We made massive advancements in the most important areas: intelligence, performance, battery and camera.”
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