Martin County, Florida – Florida authorities have arrested two individuals allegedly connected to a vast nationwide gift card scam that has targeted countless unsuspecting consumers. The suspects, identified as Caoyuan Liu and Lingham Chen, were apprehended in South Florida earlier this week following a vigilant grocery store employee’s tip to the Martin County Sheriff’s Office (MCSO).
The pair, both from China, are accused of orchestrating a scheme that involved tampering with gift cards across multiple states. Liu, who is undocumented, and Chen, in the U.S. on a student visa, are currently being held at the Martin County Jail, where immigration detainers have also been placed on them. According to investigators, their scam caused financial losses to victims totaling hundreds of thousands of dollars.
Authorities revealed that the scam operated by Liu and Chen relied on sophisticated methods. The duo allegedly scratched off the protective seals on gift cards to obtain their account numbers and PINs. After recording this information, they resealed the cards and returned them to store shelves, cleverly blending them with untouched cards. Unwitting customers would purchase the tampered cards, only to discover that their balances had already been drained when activated.
Deputies confirmed that the suspects often relocated to new stores after tampering with the cards, ensuring their activities remained undetected. This method allowed them to hit multiple locations across Florida, including Sarasota, Manatee, Lee Counties, and North Port, with a trail of activity also leading to cities such as Orlando, Fort Myers, Naples, Fort Lauderdale, and Miami.
The scheme began to unravel when a grocery store employee noticed Liu and Chen behaving suspiciously near a gift card display. Alerting the authorities, the employee enabled deputies to catch the suspects in the act. Upon questioning, the deputies discovered Liu and Chen’s connection to a broader theft network extending beyond Florida.
According to MCSO, this is an organized crime operation with national ties. The diligence of one employee and swift action by law enforcement has disrupted a scam that has harmed countless victims.
Following the arrests, authorities have urged consumers to be cautious when purchasing gift cards. Shoppers are advised to inspect the packaging for signs of tampering, such as torn seals, resealed edges, or visible scratches over account numbers. If anything appears suspicious, customers should avoid the purchase and immediately report the issue to store personnel.
Read also: Floridians suffer $435.2 million in losses due to scams in first of the year
Gift card fraud has become increasingly prevalent, with criminals exploiting the popularity of these cards during holidays and special occasions.
As the investigation unfolds, Liu and Chen face multiple charges related to fraud and theft. With Liu’s undocumented status and Chen’s student visa conditions under scrutiny, their legal troubles could extend to federal immigration proceedings.
While law enforcement works to unravel the extent of the operation, the arrests mark a significant step toward curbing gift card fraud.
