> 3) If I buy gift cards in New York, there's zero reason someone in Bangalore, India should immediately be able to redeem those gift cards. Perhaps Target could should spend some of their data collection techniques on this instead of trying to figure out if your daughter is pregnant so they can send you maternity coupons.

I don't see why data collection is necessary here, if gift cards are such a fraud vector, why not put a 24hr delay in activation on gift card purchases over a $100 to give scammees a chance to understand what happaned and prevent the scammers from profiting.