DALLAS — What looked like ordinary gift cards on store racks across Texas were quietly turning into empty plastic.
State investigators say a months-long scheme drained millions from unsuspecting shoppers — until it ended with three arrests this week.
The Texas Financial Crimes Intelligence Center has arrested three men accused of operating a gift card fraud operation that authorities estimate caused about $14 million in losses, according to a news release.
Kristians Petrovskis, Romualds Cubrevics and Normunds Ulevicus are suspected of gift card cloning. Investigators say the men had more than 400 gift cards in their possession at the time of their arrests.
According to authorities, the scheme involved stealing inactivated gift cards from store kiosks, opening the packaging and copying the card numbers.
The cards were then resealed and returned to store displays. Once a customer purchased the card and loaded money onto it, the suspects allegedly monitored the balance and quickly drained the funds.
Investigators said the three men told officers they typically targeted about 10 stores a day, seven days a week, and had been carrying out the scheme since May 2025.
Authorities linked the suspects to recent cases in the Dallas-Fort Worth area, Central Texas and along the Gulf Coast.
All three suspects were charged with fraudulent possession of gift cards, a first-degree felony. Two are being held in the Dallas County Jail, while one remains in custody in Garland, according to the release.
Agencies assisting in the investigation included the Garland Police Department, Dallas Police Department teams, the Texas Department of Public Safety and U.S. Customs and Border Protection. It is not immediately clear whether they had attorneys.
Tips for protecting yourself against scams
Authorities are urging consumers to examine gift card packaging carefully before buying, watching for signs of tampering such as damaged seals or excess glue.