The holiday shopping season is in full swing, and as shoppers seek the best deals, scammers are also looking to spoil presents, specifically gift cards.
Now, a state lawmaker is hoping to stop these criminals with legislation. Democratic state Rep. Lisa Boscola of the Lehigh Valley region said she couldn’t believe how prevalent the problem is with criminals draining gift cards.
“Imagine the holidays when you’re buying a gift card, and then your loved one or friend tries to activate and there’s no money there,” Boscola said.
The U.S. Department of Homeland Security is now calling it a billion-dollar international industry connected to Chinese criminal networks, funding illegal activity.
In fact, former Pennsylvania Attorney General Michelle Henry announced this past January the arrest of a 20-year-old Chinese national who pleaded guilty in Lawrence County to draining nearly 4,000 Apple gift cards, potentially worth nearly $1 million, from Walmart stores across the greater Pittsburgh area. He altered the cards and redirected the funds to himself before putting them back on store shelves.
“To know that the money is being used in China for fentanyl and human trafficking is appalling to me, and I’m like, well, we got to do whatever we can in Pennsylvania to stop this type of fraud and gift card draining,” Boscola said.
This week, Boscola sent out a co-sponsorship memo for two bills she hopes to introduce next week while still in session. They’re based on similar legislation already enacted in 15 other states. The first would create a specific offense for gift card tampering and data theft.
“Various states do it differently. Some penalize you for the amount of the gift cards. Others like per gift card, meaning, if you’re scammed about 300 gift cards, your penalty is higher,” Boscola said.
The second would require retailers to post uniform fraud warning signs in stores and to provide basic employee training.
“Criminals keep finding a way to do something, and we have to keep up to date with the laws to make sure that once we find somebody that has drained gift cards, that we can prosecute them,” Boscola said.
Boscola currently has bipartisan support and doesn’t believe she’ll have any trouble passing the bills early in 2026.
“This is a $1 billion industry, and if we don’t do anything about it, it’s going to go to $2 billion,” Boscola said.
Caitlin Driscoll of the Better Business Bureau of Western Pennsylvania provided some tips for folks buying or receiving gift cards.
Take a close look at the cards to make sure the stickers on barcodes don’t appear to have been lifted or scratched. Use a gift card as soon as possible, and keep or provide the person you’re gifting it to with the activation receipt information. It’s best to buy a gift card with a credit card and register the gift card, because you may be able to change the PIN.