SE Oakland News

The Michigan House of Representatives has passed a bipartisan legislative package aimed at addressing the rise in gift card fraud, an issue increasingly linked to organized crime. The bills are sponsored by state Rep. Mike Harris, R-Waterford, and state Rep. Samantha Steckloff, D-Farmington Hills.

“When someone spends their hard-earned money on a gift card for family or friends, they should be able to expect that the money will be there when their loved one goes to buy something,” Harris said.

Organized groups have reportedly used advanced tactics to steal gift card PINs before purchase, allowing them to use the cards online after activation for reselling or cash returns.

“The techniques these criminals are using to exploit people are evolving,” said Harris, who is a retired police sergeant. “Unsuspecting people don’t even know they are getting robbed until they get to the checkout and the money isn’t there. This is about holding criminals accountable for preying on innocent people.”

If enacted into law, House Bills 4598 and 4599 would categorize gift card fraud under Michigan’s statutes against organized retail crime. This change would make such offenses felonies with penalties of up to five years in jail and fines up to $5,000. Prosecutors would have clearer authority over cases involving stolen or tampered gift cards intended for fraudulent use.

“Gift card fraud is not a trivial inconvenience – it’s a growing crime wave,” Steckloff said. “By the FTC’s account it represents several hundred million dollars stolen from vulnerable citizen’s pockets. By passing these bills, we will without question be making Michigan better and safer by ensuring that consumers, especially seniors and families, have stronger protections. The package will also reduce losses to retailers, translating into fewer costs passed on to customers. These bills are common sense solutions to a growing problem – by passing these bills the House is standing up in a bipartisan way to protect the citizens of Michigan.”

The legislation received broad support in the House with 103 votes in favor and only one opposed. The measures now move forward for consideration in the Senate.