Three Men Arrested in Massive Gift Card Cloning Scheme Worth $14 Million

Sophisticated Gift Card Fraud Operation Exposed

Texas authorities have arrested three men in connection with a sophisticated gift card fraud scheme that drained an estimated $14 million from unsuspecting shoppers across multiple states. The Texas Financial Crimes Intelligence Center arrested three men suspected of stealing more than $14 million worth of gift cards , marking one of the largest gift card fraud cases in recent Texas history.

Kristians Petrovskis, Romualds Cubrevics and Normunds Ulevicus are suspected of cloning more than 400 gift cards that were in their possession when they got arrested . Investigators said the three men reported stealing gift cards from approximately 10 stores a day, starting in May 2025 , demonstrating the industrial scale of their operation.

Authorities also linked them to recent offenses across the Dallas-Fort Worth area, Central Texas and the Gulf Coast region . The arrests involved coordination between multiple agencies, including the Garland Police Department, the Dallas Police Department, the Texas Department of Public Safety and U.S. Customs and Border Patrol .

How the Gift Card Cloning Scheme Worked

The fraud operation relied on a technique known as gift card cloning, which exploits vulnerabilities in retail gift card systems. The scheme involves the theft of unactivated gift cards from retail store kiosks, opening the gift card packaging, copying the electronic number off the card, then re-sealing the gift card packaging and returning it to the kiosk at the store .

When a customer purchases a card and loads funds onto it, the thief can check the card's balance and drain the card of funds before the customer can use it . This method allows fraudsters to steal money without the customer realizing their gift card has been compromised until they attempt to use it.

The timing of these arrests is particularly significant, as 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 . This enhanced legislation makes gift card fraud a more serious offense with stiffer penalties.

Legal Consequences and Consumer Protection

Petrovskis, Cubrevics and Ulevicus were charged with fraudulent possession of gift cards, a first-degree felony in Texas . Two of the men are being held in the Dallas County Jail while the third remains in jail in Garland . First-degree felony charges in Texas can result in sentences ranging from five to 99 years in prison, reflecting the severity of their alleged crimes.

Authorities are urging consumers to protect themselves from similar scams. To avoid being caught up in the scam, customers are urged to closely examine gift card packaging for any excess glue or damage to the packaging . Shoppers should also purchase gift cards directly from customer service counters when possible and avoid cards that appear to have been tampered with.

Broader Implications for Retail Security

This case highlights the evolving nature of retail fraud and the need for enhanced security measures. The massive scale of the operation—affecting stores across multiple Texas regions and potentially other states—demonstrates how organized criminal groups are exploiting weaknesses in gift card systems.

The success of this investigation showcases the effectiveness of inter-agency cooperation and the newly established Texas Financial Crimes Intelligence Center. As gift cards remain popular for both legitimate purchases and as gifts, retailers and consumers alike must remain vigilant against these sophisticated fraud schemes that can turn a simple gift into an expensive lesson in cybercrime.