A sophisticated, multi-state fraud ring targeting gift cards has been dismantled in Texas, with the arrest of three individuals allegedly operating illegally within the country. The scheme, estimated at $14 million, involved a meticulous process of theft and manipulation, leaving unsuspecting consumers vulnerable to financial loss.
Kristians Petroviskis, Romunds Cubrevics, and Nurmunds Ulevicus, all citizens of Latvia, were apprehended by the Texas Financial Crimes Intelligence Center (FCIC). Investigators discovered the trio systematically stole gift cards from approximately ten stores *daily*, operating seven days a week since May, demonstrating a relentless and organized effort.
The operation wasn’t simply about taking the cards. The criminals carefully disassembled each one, exposing the hidden security numbers. These numbers were then illicitly programmed into a system designed to monitor the cards for activation and subsequent funds loading.
According to FCIC Director Adam Colby, the cards were then expertly reassembled, appearing untouched and ready for resale. This allowed them to be placed back on store shelves, deceiving customers into purchasing compromised cards.
The true danger lay in the aftermath of a purchase. As soon as a customer activated the card and added funds, the criminals instantly gained access. They could then transfer the money to other cards, using it for cash withdrawals or purchasing expensive goods, effectively stealing from the unsuspecting buyer.
Authorities recovered over 400 gift cards during the arrests, highlighting the scale of the operation. The targeted cities included major metropolitan areas like Dallas, Houston, and San Antonio, indicating a widespread network of compromised stores.
All three men face charges of first-degree fraudulent possession of gift cards. This case emerges during a period of heightened scrutiny regarding fraud within immigrant communities, with a separate large-scale investigation recently launched in Minneapolis focusing on child day care fraud.
The precision and audacity of this gift card scheme underscore the evolving tactics employed by criminals and the importance of vigilance for both retailers and consumers. The ability to seamlessly reintroduce stolen and compromised cards into circulation represents a significant challenge for fraud prevention efforts.
