Stronger penalties for gift card fraud now in effect in Michigan
A new law that makes it easier to prosecute individuals who commit gift card fraud is now in effect.
House Bill 4598, introduced in 2025 by Rep. Mike Harris, R-Waterford, and House Bill 4599, introduced in 2025 by Rep. Samantha Steckloff, D-Farmington Hills, are now Public Acts 109 and 110 of 2026.
The new laws add gift card fraud to Michigan's existing laws that deal with organized retail crime, making it easier to prosecute individuals who steal gift cards or gift card information, tamper with gift cards with intent to defraud or use stolen gift card information to obtain money, goods or other things of value, according to Harris' office.
Violations are punishable by up to five years in prison and a $5,000 fine, according to Harris' office.
According to Harris' office, Harris and Steckloff worked together on the bipartisan legislation after hearing increasing concerns about gift card scams affecting consumers across Michigan.
Harris' office says that criminal organizations often tamper with cards displayed in stores, copy card numbers and PINs, then wait for a customer to purchase and activate the card and load funds onto it, so they can use stolen information to obtain the customer's money.
"The techniques these criminals are using continue to evolve, and our laws need to keep pace," Harris said. "Many victims don't even realize they've been robbed until they get to the checkout counter and find out the money is already gone. This law strengthens our ability to hold these criminals accountable and protect people from being exploited."
