Three Latvian Men Arrested for $14 Million Gift Card Cloning Scheme

Massive Gift Card Fraud Operation Exposed

Three Latvian nationals have been arrested by Texas authorities for orchestrating what investigators describe as a sophisticated gift card cloning operation that allegedly netted $14 million in fraudulent gains . Kristians Petrovskis, Romunds Cubrevics and Nurmunds Ulevicus were found with more than 400 gift cards in their possession when taken into custody by the Texas Financial Crimes Intelligence Center in Austin.

The scheme involved a methodical approach to theft that exploited vulnerabilities in retail gift card systems. The suspects allegedly stole inactivated gift cards from store kiosks, opened the packaging, and copied the electronic numbers before resealing the cards and returning them to displays . Once unsuspecting customers purchased these compromised cards and loaded funds, the suspects could monitor balances and quickly drain the money before consumers realized what happened .

According to investigators, the operation was staggering in its scope and persistence. The three men told authorities they typically targeted 10 stores daily, seven days a week, and had been running this scheme since May 2025 . Their criminal activities spanned multiple regions including the Dallas-Fort Worth area, Central Texas, and Gulf Coast regions .

New Texas Law Targets Gift Card Fraud

The arrests come as Texas implements stronger legal protections against gift card tampering. Texas Penal Code 32.56, enacted by the 89th Texas Legislature to crack down on gift card tampering, took effect on September 1, 2025 . All three suspects face charges of Fraudulent Possession of Gift Cards, classified as a first-degree felony under the new legislation.

Adam Colby, director of the Financial Crimes Intelligence Center, noted that the suspects were "all here illegally, and they were all specifically here to commit crimes" . Two of the men are currently held in Dallas County Jail, while the third remains incarcerated in Garland .

How the Scam Worked

The gift card cloning process required careful precision and planning. Thieves would take stolen cards to another location and carefully remove packaging "almost surgically," then strip away the material covering card numbers needed for activation or transfers . This allowed them to access card information while leaving the packaging intact enough to fool retail staff and customers.

The Texas Financial Crimes Intelligence Center, staffed by experienced law enforcement officers and intelligence analysts, specializes in investigating organized financial crimes including credit card skimming and various point-of-sale terminal attacks . Their expertise proved crucial in unraveling this complex multi-state operation.

Consumer Protection and Future Implications

This case highlights the evolving nature of retail fraud and the need for enhanced consumer awareness. Gift cards remain popular targets because they function like cash once activated, making fraudulent transactions difficult to trace or reverse. The sophisticated nature of this operation demonstrates how organized criminal groups are adapting traditional theft methods to exploit modern retail systems.

The successful prosecution of this case under Texas's new anti-tampering law could serve as a deterrent to similar operations while providing a legal framework other states might adopt. As retail technology continues advancing, law enforcement agencies are developing specialized units like Tyler's Financial Crimes Intelligence Center to combat increasingly complex financial crimes that cross state boundaries and impact millions of consumers nationwide.