Cops Bust Alleged Gift Card Scam Across Texas

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Two men have been arrested after investigators uncovered a widespread gift card tampering scheme across the Houston and Austin areas. Authorities say the suspects copied activation codes and serial numbers from unactivated gift cards, resealed the packaging, and placed the compromised cards back on store shelves. Once unsuspecting shoppers loaded money onto the cards, the suspects allegedly drained the funds online.

Why it matters

This case highlights a growing trend of organized gift card fraud in Texas, with criminals exploiting vulnerabilities in retail gift card displays to steal millions. Recent state legislation has created specific penalties for gift card tampering, aiming to deter this type of large-scale financial crime.

The details

Investigators say the suspects methodically targeted dozens of stores in the Houston and Austin areas, altering an estimated 3,000 gift cards. The scheme involved peeling back the protective film, copying the activation and serial data, then carefully resealing the packaging to appear untouched. Unsuspecting shoppers who later loaded money onto the compromised cards had their funds drained online by the suspects.

• On March 17, Walgreens employees in Spring discovered 15 altered gift cards.
• On March 31, arrests at a Walgreens in Buda turned up 80 cards and two Taiwanese passports.
• On April 1, a search of a hotel room yielded more than 3,000 compromised cards.
• On April 10, a search in Sharpstown uncovered 277 bundles of altered gift cards.

What’s next

Investigators are still reviewing evidence from the Austin and Houston area searches, and say additional charges could follow once prosecutors review the case.