> the gap between legitimate use of gift cards and fraudulent use of gift cards is just not very large.

And many legitimate uses of gift cards may actually have been fraudulent somewhere up the chain.

Imagine a scammer which sells their cards to real users (perhaps through one or more less-than-scrupulous intermediaries willing to buy them in crypto without asking too many questions). If the victim comes to their senses and somehow gets those cards reported and blocked as fraudulent, unsuspecting users will get into trouble.