Three Men Steal $14 Million Through Gift Card Cloning Scheme Across Texas
Finn's Take· TL;DR- Three Latvian nationals arrested for cloning gift cards stolen from store displays, defrauding consumers of $14 million across Texas.
- Criminals targeted 10 stores daily, stealing unactivated cards, copying numbers, resealing packages, then draining funds after customers loaded money.
- New Texas law taking effect September 2025 increases penalties for gift card tampering; consumers urged to inspect packaging before purchase.
Massive Gift Card Fraud Operation Exposed
Three Latvian nationals have been arrested in North Texas for orchestrating a sophisticated gift card cloning scheme that authorities estimate cost consumers approximately $14 million. The Texas Financial Crimes Intelligence Center arrested Kristians Petrovskis, Romunds Cubrevics and Nurmunds Ulevicus, who are suspected of gift card cloning tied to an estimated $14 million in losses .
Investigators say the men had more than 400 gift cards in their possession at the time of their arrests . The suspects operated with industrial efficiency, telling investigators they targeted about 10 stores a day, seven days a week, since May 2025 . Their criminal enterprise stretched across multiple regions, with alleged activity linked to cases across North Texas, Central Texas and the Gulf Coast .
"These people were all here illegally, and they were all specifically here to commit crimes," said Adam Colby, director of the FCIC. The men are foreign nationals from Latvia . All three men are charged with Fraudulent Possession of Gift Cards, a first-degree felony. Two are being held in the Dallas County Jail, while the third remains in custody in Garland .
How the Sophisticated Scam Worked
The criminals employed a methodical approach that exploited vulnerabilities in gift card security. The scheme involved stealing un-activated gift cards from store kiosks, copying the electronic card numbers, resealing the packaging and returning the cards to store displays . The thieves would then take the items to another location and carefully remove the packaging almost surgically. The card is removed, and then the material on the back that covers up the numbers to transfer anything or activate the card is then removed so that they can see it .
When a consumer purchases the card and loads funds onto the compromised gift card, the criminal then checks the card's balance and drains the card of funds before the consumer can use it . This created a devastating experience for unsuspecting shoppers who discovered their gift cards were worthless when they tried to use them.
The scale of the operation was staggering. Colby pointed out that the scammers can readily steal 100 cards a day. Unsuspecting consumers then load them with varying amounts, and it adds up quickly — to $14 million in this case .
New Laws Target Growing Problem
The arrests come at a particularly significant time for Texas law enforcement. The arrests come just weeks after Texas Penal Code 32.56, a new law aimed at cracking down on gift card tampering, took effect on September 1, 2025 . The Texas Legislature this year enacted a law more clearly defining gift card fraud and upping the penalties .
Authorities are urging consumers to examine gift card packaging carefully before buying, watching for signs of tampering such as damaged seals or excess glue . Consumers are encouraged to closely examine gift card packaging before purchasing gift cards, looking for any excess glue or damage to the packaging that could indicate someone has tampered with the card .
As gift card fraud continues to evolve, this case demonstrates both the sophistication of modern criminals and the importance of consumer vigilance. The successful investigation involved multiple agencies and represents a significant victory against organized retail crime that targets everyday shoppers during the holiday season and beyond.