Texas lawmakers have strengthened laws targeting gift card fraud as authorities investigate a massive scam that allegedly stole millions of dollars from consumers.
The Texas Financial Crimes Intelligence Center (TFCIC) announced the arrest of three men accused of running a sophisticated gift card scheme valued at an estimated $14 million. The suspects — Kristians Petrovskis, Romualds Cubrevics, and Normunds Ulevicus — are charged with fraudulent possession of gift cards and are currently being held in the Dallas County Jail.
According to TFCIC Director Adam Colby, the operation involved stealing unused gift cards from retail stores and kiosks. The suspects allegedly opened the cards with care, recorded the card numbers and activation codes, then resealed the packaging to conceal any tampering before placing the cards back on store shelves.
The stolen card information was then entered into a computer program designed to monitor when a consumer purchased and activated one of the compromised cards. Once money was loaded onto the card, the funds were immediately transferred to accounts controlled by the suspects, leaving buyers with unusable cards.
Colby said some victims had their cards drained before they even returned to their vehicles after making the purchase. While the process may seem labor-intensive, investigators say the suspects were able to steal up to 100 cards per day, visiting as many as 10 stores daily, seven days a week.
Authorities reported the men were found with approximately 400 gift cards at the time of their arrest and are linked to similar crimes across North Texas, Central Texas, and the Gulf Coast region. Jail records also indicate immigration-related holds that may affect their release on bond.
Officials note that while organized crime groups from China were once dominant in gift card fraud, the method has spread internationally, with Eastern European groups now increasingly involved.
As holiday shopping intensifies, investigators warn consumers to be cautious when purchasing gift cards, noting that fraud schemes like this one add another layer of risk during an already busy season.
