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 testified on Thursday about a bipartisan initiative aimed at addressing the issue of gift card fraud in Michigan. This growing problem affects both consumers and businesses in the state.
Harris, a Republican from Waterford, was accompanied by Democratic Representative Samantha Steckloff from Farmington Hills. Together, they presented their legislative proposal to the House Regulatory Reform Committee. The proposed bills seek to enhance law enforcement's ability to combat criminal networks engaged in gift card fraud. These fraudulent activities are often linked to international organizations involved in serious crimes such as human trafficking and fentanyl distribution.
"Gift card fraud is on the rise, as sinister crime rings steal from Michigan shops and shoppers," stated Harris, who has a background as a police sergeant. "They copy gift card numbers and PINs; then once a store activates the card for a customer, the criminals spend the card and profit. Innocent, unsuspecting customers have their gift cards drained of funds before they can ever use them. Many of the organizations responsible for these gift card schemes are involved in more dangerous crimes, too. Our bipartisan plan will increase fines and jail time so prosecutors can get tough on these criminals and protect Michigan customers and local businesses."
The issue extends beyond simple theft of preactivated cards. Criminals copy numbers and PINs from cards still available for sale in stores. Once activated by a customer, these cards are used by criminals to buy goods that are either sold for profit or returned for cash refunds.
House Bills 4598 and 4599 propose adding gift card fraud to Michigan’s organized retail crime laws, making it a felony punishable by up to five years in prison and a $5,000 fine. This would allow for stricter penalties against those who engage in fraudulent activities involving gift cards.
Retailers are also enhancing security measures to detect and prevent such frauds, while consumers are advised to inspect gift card packaging for signs of tampering.
The proposed bills remain under review by the committee.
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