Jesse Scheckner
Legislation to codify gift card fraud and punishments for the crime is bound for the Senate floor, but it still could use more clarity, according to one lawmaker who voted for it.
Members of the Senate Rules Committee voted 24-0 for SB 1198, which would set gift card fraud as a first-degree misdemeanor punishable by up to a year in jail and $1,000 in fines.
Gift card fraud, as defined by the bill, includes acquiring or retaining a gift card or gift card redemption information without proper consent, altering or tampering with a gift card or its packaging, scheming to use a gift card or gift card info for fraudulent purposes, and/or using an illegally obtained gift card or gift card info to attain money, goods or services.
If the value of the ill-gotten money, goods or services exceeds $750, the crime becomes a third-degree felony, carrying a punishment of up to five years in prison and $5,000 in fines.
The bill, sponsored by St. Petersburg Sen. Nick DiCeglie, received unanimous support through all three of its committee stops. But it could be improved, according to Spring Hill Sen. Blaise Ingoglia, a fellow Republican.
Ingoglia noted that some cards can be filled with various sums of money, making the value in question — and the potential punishment — somewhat indeterminable.
One technique fraudsters are using, he said, is removing the protective film from the back of a card, recording the redemption code, waiting for the purchaser to load the card with money and then using the code to steal the funds.
Because those kinds of cards have a starting value of $0 until they’re filled, he said, criminals who get caught before stealing the funds could claim that there was never any money at stake.
“I’m concerned about something being argued in court where if it goes before a jury they can say, ‘Well, there was nothing ever loaded on these cards,’ although clearly the intent was to defraud,” Ingoglia said. “Maybe (we should make) possession of cards that have been manipulated as a separate offense.”
DiCeglie said he’d be happy to speak with Ingoglia more about the matter.
Representatives from the Florida Chamber of Commerce, Florida Retail Federation, Florida Restaurant and Lodging Association, Associated Industries of Florida, Florida Smart Justice Alliance, AARP and Interactive Communications International signaled support for SB 1198.
In 2023 alone, gift card-related fraud accounted for $217 million of the record $10 billion lost in scams across the U.S., according to Federal Trade Commission data.
There is no shortage of news reports about gift card fraudsters getting caught across the Sunshine State.
The bill’s House companion (HB 1007) by St. Augustine Republican Rep. Sam Greco and Coral Springs Democratic Rep. Dan Daley cleared its first of two committee stops last month with unanimous support.
