Three Men Arrested in Massive $14 Million Gift Card Cloning Scam
Finn's Take· TL;DR- Three men arrested for seven-month gift card cloning scheme targeting Texas retailers, defrauding customers of approximately $14 million.
- Criminals stole unactivated cards, copied electronic numbers, resealed packaging, then drained funds when victims loaded money onto compromised cards.
- New Texas law classifying gift card tampering as first-degree felony enabled prosecution; consumers advised to inspect packaging for tampering signs.
Seven-Month Crime Spree Across Texas
Kristians Petrovskis, Romunds Cubrevics and Nurmunds Ulevicus allegedly orchestrated a sophisticated gift card fraud operation that targeted retailers across multiple Texas regions , hitting up to 10 stores daily, seven days a week, for seven months starting in May . State officials estimate the total fraud reached $14 million, with the scheme spanning the Dallas-Fort Worth area, Central Texas, and the Gulf Coast .
The trio's downfall came on December 15 when Garland police arrested them after the Texas Financial Crimes Intelligence Center tipped them off about suspicious activity at a Walgreens on Broadway Boulevard . Officers discovered "a shopping bag of gift cards in the trunk" representing potential losses exceeding $26,000 , while investigators found the suspects possessed more than 400 gift cards total .
The Gift Card Cloning Process
The scheme begins with criminals stealing unactivated gift cards from store kiosks, carefully opening the packaging to copy the electronic card numbers, then resealing the cards and returning them to store displays . When someone bought a compromised card and loaded it with funds, the suspects could then check the card's balance and drain those funds before the consumer could use them .
The suspects would take the stolen cards to another location and carefully extract the electronically stored numbers from the back, either transferring them to other cards or storing them in computer systems . This method allowed them to systematically drain funds from gift cards purchased by unsuspecting consumers across Texas and Louisiana.
New Legal Weapons Against Fraud
The arrests come after a new state law aimed at cracking down on gift card tampering took effect, with Texas Penal Code 32.56 becoming effective September 1 . Previously, there was "kind of a loophole, where gift cards weren't mentioned in some of the other statutes," which made prosecutors hesitant to pursue cases under different laws where gift cards weren't specifically mentioned .
All three suspects were charged with fraudulent possession of gift cards, now classified as a first-degree felony under Texas law . The men remain in custody, with two held in Dallas County Jail and one in Garland, all facing immigration holds .
Consumer Protection Strategies
Authorities urged consumers to closely examine gift card packaging before purchasing, warning that excess glue, damaged packaging or signs of tampering could indicate a compromised card . The sophisticated nature of this operation demonstrates how criminals have evolved beyond simple gift card theft to complex cloning schemes that can affect thousands of consumers.
This case highlights the growing threat of organized retail crime targeting gift cards, particularly during peak shopping seasons. As law enforcement agencies develop new tools to combat these schemes, consumers must remain vigilant when purchasing gift cards, especially from high-traffic retail locations where tampering may go unnoticed.