Plano, Texas – Two individuals were recently apprehended in Plano for an alleged gift card scheme that targeted numerous stores in North Texas. Xiaohong Zhang and Xiongling Chen, both from California, were taken into custody by Plano police last week in connection to the fraudulent activity. The scam, known as “gift card draining,” involves scammers obtaining gift card numbers and PIN codes from unpurchased cards at service kiosks, resealing them, and returning them to the shelves for unsuspecting customers to purchase.
Authorities state that the scammers would then drain the prepaid cards of their funds once they were bought. The Plano police department, in collaboration with the Secret Service and ICE, conducted an investigation that revealed Zhang and Chen were observed placing tampered gift cards back into store kiosks across various North Texas stores, including those in Plano. As a result, law enforcement seized 4,100 tampered Apple gift cards valued at $649,000 in connection to the scheme.
In response to these events, the Plano Police Department issued a press release encouraging the public to remain vigilant when purchasing gift cards and report any suspicious activities to authorities. Consumers were advised to inspect gift cards before purchase, noting any irregularities, and retaining the receipt as proof. Individuals who suspect they have bought a tampered gift card were instructed to contact the retailer and file a report with police and the FTC.
Zhang and Chen are facing charges of unlawful use of a criminal instrument, with additional arrests expected in connection to the scheme. The investigation highlights the importance of vigilance in consumer transactions, particularly in cases involving gift cards. Authorities emphasize the significance of reporting suspicious activities and maintaining awareness to prevent falling victim to fraudulent schemes targeting unsuspecting individuals in the community.