3 European men arrested in Texas for nearly $14M in gift card fraud

AUSTIN, Texas - Three European men were arrested for their involvement in a high-tech and extensive criminal enterprise. 

The suspects are accused of committing crimes in several cities across the United States before eventually being arrested in Texas. 

Investigators estimate the suspects committed approximately $14 million in fraud.

The backstory:

Kristians Petroviskis, Romunds Cubrevics, and Nurmunds Ulevicus were arrested by the Texas Financial Crimes Intelligence Center (FCIC).​

"These people were all here illegally, and they were all specifically here to commit crimes," said Adam Colby, director of the FCIC.

​The men are foreign nationals from Latvia. The suspects told investigators they typically stole gift cards from about 10 stores each day, seven days a week, and had been doing so since May.

​"They're stealing gift cards off the shelves from various big box stores," said Colby. "These cards have no value when they steal them."

​The thieves would then take the items to another location and carefully remove the packaging almost surgically.

​"The card is removed, and then the material on the back that covers up the numbers to transfer anything or activate the card is then removed so that they can see it," said Colby. "The numbers that are on the card are then programmed into another program that the criminals are using, which will now monitor that card."

​From there, the cards are reassembled to appear new, without scratches, and placed back onto store shelves for someone to buy.

​"As soon as it is activated and money placed onto that card, the criminals are now aware of it, but they now have the ability to transfer the money off of that card and onto another card where it is then cashed out or used to buy high-end merchandise," said Colby.

​Authorities said more than 400 gift cards were found in the suspects' possession at the time of their arrest. The group is accused of targeting stores in several cities, including Austin, Dallas-Fort Worth, Houston, and San Antonio.

The men are charged with fraudulent possession of gift cards, a first-degree felony.

Why you should care:

Colby recommends consumers inspect gift card packaging and check for signs of tampering before purchasing.

​"The only way once you purchase it is to actually check to see what the balance is on that card, but unfortunately, most people are going to give it as a gift, and they don't want to scratch it off to see what's on there," said Colby. "Beyond that, there really isn't that much you can do other than to be vigilant."