Great Lakes Wire

Michigan Attorney General Dana Nessel has been named the first attorney general strategic partner of the Gift Card Fraud Prevention Alliance (GCFPA), a coalition formed to address the growing issue of gift card fraud in the United States. The partnership brings together law enforcement, retailers, gift card networks, and consumer advocates with the goal of protecting consumers from scams involving gift cards.

Gift card fraud is a significant concern nationwide. In 2023, Americans reported losses exceeding $228 million due to these scams, according to Federal Trade Commission data. Experts believe actual losses may be higher because many cases go unreported. This type of fraud is often linked to organized retail crime and can involve multinational criminal groups.

The GCFPA was created by the Retail Industry Leaders Association Communities Foundation (RILA) to encourage collaboration between public and private sector stakeholders. The alliance aims to develop strategies for reducing gift card fraud, educate consumers, and ensure that those responsible are prosecuted.

Attorney General Nessel has focused on consumer protection since taking office. Her office’s Consumer Protection Team works with local law enforcement and organizations such as AARP to raise awareness about scams targeting vulnerable citizens. She said, “Gift card fraud is a growing threat that targets everyday consumers. I am proud to partner with the Gift Card Fraud Prevention Alliance to bring together law enforcement, retailers, and consumer advocates to fight these scams. Together, we will educate the public, hold fraudsters accountable, and make it far more difficult for criminal organizations to target Michigan families and businesses.”

In January 2023, Nessel established the Focused Organized Retail Crime Enforcement (FORCE) team in Michigan. This task force has charged over 85 defendants in 42 major cases and recovered more than $10 million in stolen merchandise as well as additional funds in cash and cryptocurrency.

Bill Hallan, President and CEO of the Michigan Retailers Association said: “Michigan Retailers Association has strongly advocated for continued funding for the FORCE team and bipartisan legislation to include gift card fraud in Michigan’s ORC law. We are thrilled to support this alliance that strengthens our fight against new forms of Organized Retail Crime impacting both retailers and Michigan consumers.”

Earlier this year, members of Nessel’s FORCE Team charged two individuals accused of running a large-scale scheme involving tampered empty gift cards stolen from stores. The suspects allegedly recorded redemption numbers before returning altered cards back into circulation; once activated by unsuspecting customers at purchase, balances were quickly transferred out by scammers.

Nessel recently released a video warning about how these scams work and offering tips for avoiding them.

On September 9th, the Michigan House passed House Bills 4598 and 4599 which would amend state law so certain types of gift card fraud qualify as organized crime offenses if someone knowingly acquires or tampers with gift cards or uses them unlawfully for personal gain. The bills now move on to consideration by the Senate.

Lisa LaBruno, Executive Director at RILA Communities Foundation said: “Attorney General Nessel’s unwavering commitment and proactive leadership have been instrumental in uniting public and private sectors to fight gift card fraud. Her dedication ensures that consumers in Michigan—and across the nation—are collaborating to prosecute criminal rings that orchestrate gift card scams. We are deeply grateful for her partnership and tireless efforts to work with retailers to safeguard our communities.”

The GCFPA was formed in 2024 under RILA Communities Foundation (RCF), a non-profit organization supporting economic health and public safety initiatives where retailers operate.