State investigators have busted three men in a gift card fraud scheme across Texas, linked to $14 million in losses just after a new law took effect.
AUSTIN, Texas — Three men are behind bars after state investigators uncovered what they say is a massive gift card fraud scheme stretching across Texas.
The Texas Financial Crimes Intelligence Center announced the arrests of Kristians Petrovskis, Romunds Cubrevics and Nurmunds Ulevicus, who are suspected of gift card cloning tied to an estimated $14 million in losses. Investigators say the men had more than 400 gift cards in their possession at the time of their arrests.
Authorities say the scheme involved stealing un-activated gift cards from store kiosks, copying the electronic card numbers, resealing the packaging and returning the cards to store displays. Once a customer purchased and loaded money onto the card, investigators say the suspects would quickly drain the balance.
The arrests come just weeks after Texas Penal Code 32.56, a new law aimed at cracking down on gift card tampering, took effect on September 1, 2025. All three men are charged with Fraudulent Possession of Gift Cards, a first-degree felony. Two are being held in the Dallas County Jail, while the third remains in custody in Garland.
Investigators say the suspects admitted to targeting about 10 stores a day, seven days a week, since May 2025, with alleged activity linked to cases across North Texas, Central Texas and the Gulf Coast. Authorities are urging consumers to inspect gift card packaging carefully for signs of tampering before purchasing.