Combating Gift Card Fraud: How to Ensure Compliance and Consumer Trust Amid Maryland’s SB760 Bill  

Today, consumer trust hinges on data security and fraud prevention, as gift cards have become a favored target for fraudsters. The Maryland SB760 Gift Card Law / Scams Prevention Act of 2024 (Bill SB760), effective October 1, 2025, addresses this issue directly.

The Maryland SB760 bill introduces stringent new packaging and security standards that gift card issuers and retailers must meet to combat tampering and fraud. Maryland SB760 this shift isn’t just another regulatory hurdle, it’s an opportunity for brands to build trust and credibility through smart, secure packaging.

At Pack-Smart Inc., compliance isn’t an afterthought, it’s engineered into every solution we deliver. Our 1-PAS system was designed well before Maryland SB760, yet its secure, modular architecture aligns seamlessly with the legislation’s demands: serialization, tamper resistance, and efficiency at scale.

Built on a virtual machine environment and a fiber-optic based digital backbone, 1-PAS enables real-time control and orchestration of over 40 integrated modules. This allows us to synchronize operations at the speed of light, powered by digitally controlled servo motors. The system is fully modular and field-upgradable, giving our customers the flexibility to adapt, whether expanding capacity, changing substrates, or integrating new inspection or authentication technologies.

Understanding Maryland SB760 Bill: Raising the Bar for Security

The Maryland SB760 gift card law mandates that numeric redemption data must be concealed using tamper-evident packaging. This legislative move reflects a national push to disrupt fraud tactics that rely on visible or poorly protected PINs.

The bill covers all retail gift card formats, CR80 Card Only, Card on Carrier, and M6 Packaging. Regardless of format, packaging must clearly show signs of interference if tampered with, protecting consumers from unknowingly purchasing compromised cards.

Non-compliant gift cards must be removed from open display and stored behind the counter, significantly limiting product visibility and sales potential. For brands and retailers alike, it creates operational hurdles and missed opportunities, unless proactively addressed.

The Pack-Smart Inc. Response: 1-PAS Engineered for Compliance, Designed for Trust

Long before Maryland SB760 gift card law was introduced, Pack-Smart Inc. developed the 1-PAS system to address persistent challenges in card production and security. Today, it’s one of the most comprehensive solutions available, offering inline personalization, packaging, and traceability in a single system.

Tamper-Evident Packaging

1-PAS applies tamper-evident features like tear tabs, scored folds, dual glue lines, and printed indicators, all in-line and at speed. Even subtle interference becomes immediately visible, giving consumers and retailers confidence without compromising design aesthetics.

These safeguards don’t just check boxes. They raise the bar on security and reduce opportunities for fraud at every touchpoint.

Real-Time Barcode Tracking and Activation Control

The 1-PAS system embeds real-time barcode tracking into every stage of production. Each card and carrier is assigned a unique, traceable ID, which is then monitored from the moment it’s personalized to the moment it’s activated at the point of sale.

This level of visibility enables brands and issuers to identify inconsistencies instantly, prevent duplicate activations, and support comprehensive serialization and reconciliation efforts.

Vision-Based Verification and Authentication

Incorporating Delta-X Vision inspection, 1-PAS validates every printed code, label placement, glue pattern, and edge alignment with precision. This goes far beyond simple print-checking. Our system verifies live data against production logic in real-time, identifying issues before they escalate and ensuring zero-defect quality at industrial speeds.

Every inspection point feeds into a live compliance dashboard, providing production teams with visibility, accountability, and peace of mind without compromising throughput.

What Makes 1-PAS Different?

It’s not just the compliance checklist. It’s the system-wide rethinking of how gift cards should be produced, packaged, and secured. 1-PAS was designed to replace fragmented processes with a unified, automated platform that protects the product from data load to the final bundle.

Where most systems rely on three separate manufacturing processes, 1-PAS completes everything in a single pass, including card and carrier personalization, secure folding and gluing, batching, and wrapping. This streamlined approach minimizes the risk of human error, eliminates touchpoints vulnerable to fraud, and significantly compresses production timelines.

Here’s what sets 1-PAS apart:

• Inline Personalization and Packaging: From encoding and printing to folding, gluing, and labelling, 1-PAS handles it all in one uninterrupted flow.
  
• Audit-Ready Serialization: Every action is logged, timestamped, and traceable. Each card can be validated down to its print parameters and packaging history.
  
• Vision-Guided Reject Handling: Suspect cards or packages are automatically flagged, rejected, and isolated without stopping the line.
  
• Retail-Ready Output: Finished products are ready for distribution and compliant, fully serialized, and tamper-proof, ready for retail placement or direct-to-consumer delivery.

Addressing the Broader Gift Card Fraud Ecosystem

Gift card fraud is no longer opportunistic, it’s organized, evolving, and global.
Criminal networks now deploy sophisticated tactics such as stealing blank cards from retail shelves, replicating them with precision, and tracking balances in real time to intercept funds the moment they’re loaded.

The 1-PAS system isn’t just reactive; it’s preventative. It eliminates vulnerabilities that fraudsters exploit, such as exposed PINs, unverified serialization, and weak packaging, and replaces them with real-time authentication, traceable IDs, and secure inline concealment.

A Closer Look at the Maryland SB760 Law

The Maryland Gift Card Scams Prevention Act introduces clear packaging mandates under Section 14-4601 of the Maryland Code:

• Numeric redemption codes must be fully concealed in tamper-evident packaging.
• Packaging must show visible damage if someone attempts to view or remove codes without authorization.
• Any packaging format, open-loop or closed-loop, sold in Maryland retail environments is subject to these standards.

The SB760 law applies to cards sold directly through retail stores and third-party vendors; failure to comply could result in product removal, retailer penalties, and significant reputational damage.

For brands operating in multiple markets, this isn’t a one-off rule; it’s the shape of things to come. More than 25 states are reviewing similar legislation, and large retailers are already pushing for universal standards.

1-PAS Delivers More Than Compliance, It Drives Business Results

Meeting gift card legislative requirements is just the beginning. The 1-PAS system enables brands to:

Maintain retail placement: Avoid placing items behind the counter, as this reduces visibility and sales. When your packaging checks every box of Maryland SB760, your cards stay in high-traffic displays where consumers make impulse purchases. That visibility directly translates to volume, which in turn drives margin.

Protect customer relationships: Fraud undermines trust. If a customer buys a tampered card, even unknowingly, it erodes loyalty and damages the brand. By deploying tamper-evident, PIN-concealed packaging with visible security cues, you demonstrate to your customers that you’re serious about protecting their experience.

Scale personalization without sacrifice: 1-PAS was designed to handle variable data and high-volume serialization without compromising production speed. Whether you’re launching limited editions, holiday packs, or co-branded cards, 1-PAS keeps quality, speed, and compliance in perfect sync.

Build operational resilience: Insecure packaging isn’t just a liability; it’s a risk multiplier. Every misprint, misplaced label, or hand-applied seal creates an opening for fraud or recall. With 1-PAS, each process is servo-driven, camera-inspected, and logged to Delta-X Tracker. You get repeatable accuracy and instant traceability built into every step.

Support Your Sustainability Goals
Security and sustainability aren’t mutually exclusive. 1-PAS is engineered to work seamlessly with fiber-based materials such as Renovo, Fedrigoni, and Invercote, enabling brands to transition away from PVC toward recyclable, eco-friendly substrates. Combined with regenerative braking systems and low-energy LED UV curing, 1-PAS significantly reduces waste and energy consumption, without compromising product protection or regulatory compliance.

Pack-Smart’s Delta-X: The Backbone of Trust

Behind the high-speed mechanics of the 1-PAS is Delta-X, Pack-Smart Inc.’s real time computing hardware and software tracking and reporting platform. Every card, label, glue dot, and weight check are stamped, serialized, and logged in real-time through Delta-X. That means every item you produce leaves the building with a cryptographically linked, traceable digital identity.

Why does that matter?

• Audits become queries, not fire drills. You can retrieve a full production record, including the operator and batch timestamp, within seconds.
• Recalls shrink from thousands to dozens. If one batch shows anomalies, Delta-X identifies exactly which units are affected and where they were shipped.
• Activation data becomes a fraud shield. Track what was sold, when, and where. Correlate anomalies with activation patterns to flag and stop fraud in motion

With Delta-X, compliance becomes proactive. Every action on the line, every glue pattern, fold, code scan, and rejection is timestamped and linked to a secure audit trail. Instead of chasing spreadsheets during an audit, you’re equipped with a searchable, filterable data stream that shows precisely what happened, when, and why.

And it doesn’t stop there. Delta-X enables real-time insights across production, distribution, and engagement. You can:

• Trace defective batches back to the moment of failure, not just the hour.
• Analyze throughput bottlenecks, allowing teams to make informed tweaks mid-run.
• Tie packaging data to consumer behavior, connecting point-of-sale to post-sale engagement.

This isn’t just data for compliance. It’s intelligence for continuous improvement.

Delta-X Tracker, SiteCentral, and Insights modules combine to create a connected product identity cloud, empowering teams across engineering, compliance, and brand to work from the same trusted system.

Why the Maryland SB760 Gift Card Law Is a Catalyst, not a Constraint

There’s a reason legislation like SB760 creates urgency. But for brands serious about security and scale, it’s also a wake-up call.

Because here’s the truth: If your gift card packaging is only just starting to address tamper prevention, you’re already behind. Organized fraud rings don’t wait. They exploit packaging weaknesses for months, sometimes years before legislation catches up.

What SB760 does is force the industry to evolve. And that’s a good thing.

It brings clarity to what “secure packaging” means:

• PINs must be concealed completely.
• Packaging must show damage if breached.
• Serialized data must be protected from print to point-of-sale.

What the Maryland SB760 Bill Means for Distributors, Networks, and Retail Chains

It’s not just manufacturers who need to prepare. SB760 has ripple effects for every stakeholder in the gift card lifecycle.

For retailers, it’s about reducing shrink and simplifying shelf audits. With 1-PAS packaged products, store managers can visibly verify compliance without pulling cards or calling corporate.

For payment networks, it’s about minimizing fraud-related chargebacks. Secure packaging directly reduces the financial exposure tied to stolen and tampered cards.

For distributors and third-party gift card networks, it’s about future-proofing SKU portfolios. Retail partners will begin demanding assurance that all SKUs meet state-level and chain-level requirements. The easier you make that for them, the stronger the relationship becomes.

For manufacturers, this is a pivotal moment. Complying with SB760 isn’t just about staying legal; it’s about staying relevant. The brands that adopt secure, serialized, and tamper-evident packaging now will earn trust, secure shelf space, and repeat business across retail networks nationwide.

SB760 marks a turning point in how the industry approaches gift card packaging. It raises expectations, and the brands who meet them today will earn trust and growth tomorrow. With 1-PAS, Pack-Smart Inc. offers not just a solution, but a strategic edge.