Michigan committee hears testimony on bills to expand penalties for gift‑card fraud

Lansing — Sponsors of House Bills 4598 and 4599 told the Michigan House Regulatory Reform Committee that organized criminal rings are stealing, tampering with and draining prepaid gift cards and that the bills would broaden penalties under the states Organized Retail Crime law.

"Criminals are stealing large quantities of inactive gift cards from stores, and they fraudulently obtain activation information such as card numbers, PIN numbers, and then place the tampered cards back on the store shelf for an innocent consumer to purchase," Representative Harris said during testimony, describing how victims later find their cards drained.

The bills would amend the Organized Retail Crime Act to add knowingly acquiring possession of a gift card or gift‑card redemption information, altering or tampering with a gift card or gift‑card redemption information, and obtaining money or goods with such information as covered offenses when done with intent to defraud. Representative Steckloff, a co‑sponsor, said the changes are intended to give prosecutors clearer statutes to pursue…