California duo arrested in Plano for alleged ‘gift-card draining’ scheme – MASHAHER

PLANO, Texas – Two people were arrested in Plano for an alleged gift card scheme involving several North Texas stores.

Plano police arrested Xiaohong Zhang and Xiongling Chen, both of California, last week in connection to the scheme.

Police say it’s a scam called “gift card draining.”

It involves scammers grabbing unpurchased gift cards from service kiosks and getting the card numbers and PIN codes.

Once the scammers get the information, they reseal the cards and put them back on the shelves.

Then, when someone buys a tampered card, the scammer drains all of the money from the prepaid card.

Plano police say they worked with the Secret Service and ICE to investigate the scam across the DFW area. Through surveillance, they say Zhang and Chen were seen placing tampered gift cards back in store Kiosks across several North Texas stores, including in Plano.

Plano police seized 4,100 tampered Apple gift cards valued at $649,000 in connection to the scheme.

“The Plano Police Department encourages the public to be vigilant when purchasing gift cards and to report any suspicious activity to the authorities,” the department said in a press release. “Consumers should inspect gift cards prior to purchase and notify staff if anything appears out of the ordinary. It’s also important to keep the receipt as proof of purchase.”

Anyone who thinks they bought a tampered gift card can contact the retailer where they bought it. They can also file a report with police and the FTC.

Zhang and Chen are each charged with unlawful use of a criminal instrument.

Police say more arrests are forthcoming.