Three men have been taken into custody in the United States over a sophisticated gift card cloning scheme that allegedly netted them a staggering $14 million, according to law enforcement officials.
The Mechanics of a Multi-Million Dollar Fraud
The suspects, identified as Kristians Petrovskis, Romunds Cubrevics, and Nurmunds Ulevicus, were charged with fraudulent possession of gift cards, a first-degree felony. The arrests were announced by the Texas Financial Crimes Intelligence Center on Monday 22 December 2025.
Authorities stated the trio are suspected of gift card cloning, a scam where thieves steal un-activated cards from store displays. The suspects reportedly told investigators they had been stealing from an average of 10 stores a day, seven days a week, since May 2025 to execute their plan.
The method involves carefully opening a gift card's packaging, copying its unique electronic number, and then resealing it to return it to the shelf. When an unsuspecting customer later purchases the card and loads money onto it, the scammer uses the copied number to drain the funds before the legitimate buyer can spend them.
A Major Bust Under New Texas Law
The arrests mark a significant enforcement action following a new Texas law designed to crack down on gift card tampering, which came into effect in September 2025. When apprehended, the three men were found in possession of more than 400 gift cards.
It remains unclear at this time whether the accused have secured legal representation. Their alleged activities highlight a growing trend in retail fraud that costs consumers millions annually.
Protecting Yourself from Gift Card Scams
Gift card fraud has surged in recent years. According to data from the Federal Trade Commission cited by Stateline, such schemes accounted for $217 million of the $10 billion in total fraud losses reported in 2023.
Officials urge holiday shoppers and consumers to be vigilant. Key protective steps include:
- Inspect packaging closely before purchase for any signs of tampering, such as broken seals or scratches.
- Buy gift cards with a credit card where possible, as you can dispute fraudulent charges and may recover your money.
- Keep the receipt and a copy of the gift card number. If you fall victim to fraud, this information is crucial for reporting the crime to both the gift card issuer and the FTC.
This case serves as a stark reminder of the sophisticated methods employed by financial criminals and the importance of consumer awareness in the fight against fraud.
