Michigan lawmakers, retailers back bills to expand penalties for gift‑card tampering

Representatives from the Michigan House and retail industry told the House Regulatory Reform Committee that organized tampering and fraud involving gift cards has grown more sophisticated and that new penalties are needed to help prosecutors and retailers hold rings of fraudsters accountable.

Representative Harris, sponsor of House Bills 4598 and 4599, told the committee that criminals “are stealing large quantities of inactive gift cards from stores” and then obtain activation information so unsuspecting customers purchase cards that later have their balances drained. Harris said the bills would amend the Organized Retail Crime Act to broaden penalties when actions are done “knowingly and with intent to defraud,” including acquiring possession of a gift card or redemption information, altering or tampering with a card or redemption information, or obtaining value with such information.

The bills’ supporters described the scheme as organized and often run by rings, not lone actors. “This is a planned out conspiratorial…