The Florida Senate is taking steps to crack down on gift card fraud with the advancement of SB 1198, a bill designed to impose stricter penalties on individuals who engage in fraudulent activities involving gift cards.
The legislation, sponsored by Indian Rocks Beach Sen. Nick DiCeglie, cleared the Senate Appropriations Committee on Criminal and Civil Justice and is now headed to its final committee stop.
If passed, SB 1198 would classify various forms of gift card fraud as a first-degree misdemeanor, punishable by up to a year in jail and a $1,000 fine. The bill specifically targets offenses such as possessing or using a gift card without consent, tampering with a gift card or its packaging, scheming to fraudulently obtain gift cards, and using illegally obtained gift cards for purchases. If the fraudulent activity exceeds $750, the crime would be elevated to a third-degree felony, carrying a penalty of up to five years in prison and a $5,000 fine.
According to the Federal Trade Commission, gift card-related fraud accounted for $217 million in losses nationwide in 2024. Scammers frequently use stolen gift card numbers, tampered packaging or fraudulent online listings to deceive consumers.
Mercienka Camilus, a former cashier, says she has witnessed firsthand how individuals manipulate gift cards.
“I’ve seen customers buy gift cards, only to later find out that the funds were drained before they even used them,” Camilus said. “Scammers are getting more sophisticated, and something needs to be done to protect everyday shoppers.”
Retailers have also expressed concern about fraudsters using advanced techniques, such as replacing bar codes on gift cards with fake ones, allowing them to steal funds once the card is activated. Some stores have implemented additional security measures, but many consumers remain vulnerable.
Victims of gift card fraud have expressed frustration over the lack of safeguards.
Noel Davis, a victim of gift card fraud, shared her experience. “I was invited to a Secret Santa exchange with friends and received a packaged gift card that turned out to be worthless. The issuer was unable to refund anything,” Davis said. “It looked completely normal, but when I went to use it, it had already been wiped clean.”
Cases like Davis’ are becoming increasingly common, as fraudsters find new ways to manipulate the system. Many consumers are unaware that stolen gift cards, even if purchased from legitimate retailers, often cannot be refunded or replaced.
A similar measure, HB 1007, is progressing in the Florida House with bipartisan support. If both bills pass, Florida will join a growing number of states enacting stricter penalties to deter gift card fraud and protect consumers.
SB 1198 is on the committee’s agenda for April 4 at 9 a.m., with lawmakers and consumer advocates closely monitoring its progress.