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New law cracks down on gift card scammers
Under a new Florida law, committing a type of gift card fraud is now a third-degree felony. FOX 13’s Mariah Harrison reports.
TAMPA - Gift card scams are getting more expensive — and now, more punishable in Florida.
As of October 1, anyone caught committing gift card fraud that results in losses of $750 or more can be charged with a third-degree felony.
The crime carries penalties of up to five years in prison and a $5,000 fine, creating a harsher deterrent as scammers continue to exploit unsuspecting victims. Lawmakers unanimously passed the new law (SB 1198) in April, and Gov. Ron DeSantis gave it his signature in June.
How it works:
These schemes typically start with a call or email from someone claiming to represent law enforcement, the IRS, or another official agency.
Victims are told they owe money for a warrant, tax claim, or other urgent issue — and must pay immediately using a gift card.
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In more advanced cases, scammers may impersonate friends or family members, asking for help in an emergency. Once the victim buys the card and hands over the access information, the money is gone.
Dig deeper:
The National Retail Federation estimated that during the 2024 holiday season, U.S. shoppers spent $28.6 billion on gift cards — a number expected to rise again this year. With more people purchasing gift cards, the opportunities for fraud increase as well.
In 2023, the Federal Trade Commission reported that "card draining" and other gift card-related scams accounted for $217 million in losses nationwide — part of a record $10 billion lost to scams overall.
What they're saying:
Before this new law, Florida had no clear legal framework for prosecuting gift card fraud. State Senator Nick DiCeglie (R–Pinellas County), who helped champion the measure, says that gap left victims with little recourse.
"We really didn’t have any accountability or enforcement for this kind of activity," DiCeglie said. "We didn’t have laws in place to deal with that, and the good news is now that we do."
How to enforce:
While the updated law increases penalties, experts warn that enforcement remains a challenge. Many scammers operate anonymously online or through untraceable phone numbers. However, agencies are becoming more sophisticated, using technology to trace digital transactions and identify fraudulent patterns.
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The Source: FOX 13's Mariah Harrison researched this story and wrote it.