Three Latvian Nationals Arrested in Massive Gift Card Cloning Operation

A Sophisticated Criminal Enterprise

Three Latvian nationals were arrested in Austin after allegedly orchestrating one of the largest gift card fraud schemes in recent Texas history, with authorities estimating losses at approximately $14 million. The men are foreign nationals from Latvia who were recently arrested in Austin by the Texas Financial Crimes Intelligence Center based in Tyler. Kristians Petrovskis, Romunds Cubrevics and Nurmunds Ulevicus are accused of gift card cloning and had more than 400 gift cards in their possession when they were arrested, facing charges of Fraudulent Possession of Gift Cards, a first-degree felony.

According to Adam Colby, director of the FCIC, "These people were all here illegally, and they were all specifically here to commit crimes." The investigation revealed the scope of their operation was staggering. The three men told investigators they usually steal gift cards from 10 stores a day, seven days a week and have done so since May 2025. They are linked to recent offenses in the Dallas-Fort Worth, Central Texas and Gulf Coast areas.

How the Gift Card Cloning Scheme Worked

The fraud operation followed a methodical process that exploited vulnerabilities in gift card security. Gift card cloning involves the theft of un-activated gift cards from retail store kiosks, then opening the gift card packaging, copying the electronic number off the gift card, then re-sealing the gift card packaging and returning the gift card to the kiosk at the store where the card was stolen. The thieves would then take the items to another location and carefully remove the packaging almost surgically, with the card being removed and the material on the back that covers up the numbers being removed so they could 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 left unsuspecting customers with worthless cards after they had already paid for them, creating widespread financial losses across multiple retail chains.

Multi-Agency Investigation Leads to Arrests

The arrests were the result of coordinated efforts by multiple law enforcement agencies working with the Texas Financial Crimes Intelligence Center. The arrests were made with the help of the Garland Police Department, the Dallas Police Department, the Texas Department of Public Safety and U.S. Customs and Border Patrol. Two of the men are being held in the Dallas County Jail and one remains in jail in Garland.

The Texas Financial Crimes Intelligence Center, located in Tyler, Texas, is staffed by law enforcement officers and intelligence analysts with extensive experience investigating organized financial crimes, including credit card skimming and shimming that attack fuel dispensers, ATMs and point of sale terminals, as well as many other types of financial crimes. This case demonstrates how specialized financial crime units can effectively combat sophisticated fraud operations that span multiple jurisdictions.

Protecting Consumers from Gift Card Fraud

This case highlights the growing threat of gift card fraud and the need for consumer awareness. 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. The scale of this operation suggests that gift card cloning has become an increasingly attractive target for organized criminal enterprises.

As retailers and law enforcement agencies adapt their security measures, consumers should remain vigilant when purchasing gift cards. The success of this investigation shows that while criminals may develop sophisticated schemes, coordinated law enforcement efforts can effectively dismantle even large-scale fraud operations. This case serves as both a warning about emerging fraud tactics and evidence that financial crime units are equipped to respond to evolving threats in the digital economy.