Three men arrested in $14 million gift card scheme where they stole from 10 stores a day for months, officials say
The suspects were accused of gift card cloning, which involves stealing money loaded onto gift cards after shoppers buy them
Three men have been arrested in a $14 million gift card scheme where they stole from 10 stores a day for months, according to officials.
Kristians Petrovskis, Romunds Cubrevics and Nurmunds Ulevicus were charged with fraudulent possession of gift cards after Texas enacted a law to crack down on gift card tampering, which went into effect in September.
The Texas Financial Crimes Intelligence Center announced the major bust Monday, saying the three men suspected of gift card cloning had more than 400 gift cards in their possession when they were arrested.
The suspects reportedly told investigators they usually stole gift cards from 10 stores a day, seven days a week, since May to carry out their alleged scheme.
It’s not immediately clear whether the three suspects have legal representation.
Holiday shoppers should be aware of gift card cloning when buying presents for loved ones.
The scheme involves a thief stealing un-activated gift cards, opening the packaging, copying the electronic number off the gift card before re-sealing the packaging and then returning the gift card at the store where it was stolen. After an unsuspecting shopper buys the gift card and loads money onto it, the scammer steals the funds before the gift card can be used.
Gift card scams have become increasingly popular in recent years. These schemes accounted for $217 million of the $10 billion in fraud losses in 2023, news site Stateline reported, citing data from the Federal Trade Commission.
Officials warn shoppers to take a close look at a gift card’s packaging before buying it to make sure the card wasn’t tampered with.
Shoppers should also buy gift cards with a credit card as they can dispute the charge and may get their money back, according to an article from the FTC.
It is also important to keep copies of the gift card and receipt from the store where it was purchased, so if you do get a compromised gift card, you can report the fraud to the gift card company and the FTC.
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