Steve Cortes, CNN Political Commentator (left) & Mike Harris, Michigan House Representative (right) | Facebook
Steve Cortes, CNN Political Commentator (left) & Mike Harris, Michigan House Representative (right) | Facebook
State Representative Mike Harris has introduced a bipartisan initiative aimed at addressing the issue of gift card fraud in Michigan. The plan, which was presented on Tuesday, seeks to increase penalties for those involved in such fraudulent activities and provide protection for local businesses and consumers.
Harris, who previously served as a police sergeant, emphasized the need for stronger penalties to empower law enforcement against organized gift card fraud. This type of fraud involves more than just stealing preactivated cards; it includes sophisticated operations where criminals copy numbers and PINs from unsold cards. Once these cards are activated by legitimate customers, the criminals use the information to make purchases or return goods for cash refunds. Many of these schemes are linked to international criminal organizations engaged in other serious crimes like human trafficking and fentanyl production.
"High-tech criminal organizations are obtaining gift card numbers to steal from Michigan stores and their customers," stated Harris, R-Waterford. "People attempting to pay with a gift card are shocked to learn that the card is out of funds. These victims are longing for the days when the only used gift cards they received were from white elephant Christmas parties. Now Michigan needs to aggressively prosecute and punish gift card fraud. Our bipartisan plan will enhance penalties on gift card fraudsters to protect shoppers’ dollars and keep mom-and-pop stores and big-box retailers in business."
The legislative proposal comprises House Bills 4598 and 4599, co-introduced by Harris along with Representative Samantha Steckloff, D-Farmington Hills. These bills aim to categorize gift card fraud under Michigan's organized retail crime laws, making it a felony offense punishable by up to five years imprisonment and a $5,000 fine. This would apply to anyone who steals or tampers with a gift card or its information with fraudulent intent.
Retailers are also increasing security measures against such frauds while advising customers to inspect packaging for tampering signs.
The proposed bills have been forwarded to the House Committee on Regulatory Reform for further consideration.
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