Latvian Nationals Arrested for Massive Gift Card Cloning Scheme Across Texas

Multi-Million Dollar Fraud Operation Exposed

Three Latvian nationals operating illegally in the United States have been arrested for orchestrating a sophisticated $14 million gift card fraud scheme that targeted major retailers across Texas. Kristians Petrovskis, Romunds Cubrevics and Nurmunds Ulevicus were arrested by the Texas Financial Crimes Intelligence Center after a seven-month crime spree that authorities say demonstrates the vulnerability of gift card systems.

The suspects told investigators they typically stole gift cards from about 10 stores each day, seven days a week, and had been doing so since May . When arrested, authorities found more than 400 gift cards in their possession , representing just a fraction of the cards they allegedly compromised during their operation.

The group targeted stores across Dallas-Fort Worth, Central Texas, Houston, and San Antonio , demonstrating the interstate scope of their criminal enterprise. All three men are foreign nationals from Latvia who were in the country illegally , according to investigators.

How the Gift Card Cloning Scheme Worked

The process investigators say the men used to scam consumers is known as gift card cloning . The suspects are accused of stealing gift cards from retail stores, opening the gift card packaging, copying the electronic number off the gift cards, then resealing the packaging and returning the gift cards to the stores .

Once unsuspecting customers purchase and activate the cards, criminals drain the funds remotely . 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 . The sophisticated operation required technical knowledge and careful execution to avoid detection while cards remained on store shelves.

Garland police arrested the men on December 15 after the state agency tipped them off about suspicious activity at a Walgreens, where officers discovered "a shopping bag of gift cards in the trunk" representing potential losses exceeding $26,000 .

Legal Consequences and New Protections

The three men were charged with Fraudulent Possession of Gift Cards, a first-degree felony . Two of the men are being held in the Dallas County Jail while the third remains in jail in Garland . The timing of their arrests coincides with enhanced legal protections for consumers.

A new law passed in the 89th Texas Legislature aimed to crack down on gift card tampering cases, with Texas Penal Code 32.56 going into effect September 1, 2025 . This legislation specifically addresses fraudulent use, possession, or tampering with gift cards and their data.

Protecting Yourself from Gift Card Fraud

Authorities recommend consumers inspect gift card packaging and check for signs of tampering before purchasing . However, most people give cards as gifts and don't want to scratch off the protective coating to check the balance beforehand , making detection challenging for consumers.

The scale of this operation reveals how gift card fraud has evolved from petty theft to organized criminal enterprise. As digital payment systems become more sophisticated, criminals are adapting their methods to exploit vulnerabilities in retail systems. The arrest of these three suspects may represent just the tip of the iceberg in a growing category of fraud that costs retailers and consumers millions annually.