Leawood, Kan. – June 13, 2025: With the rise of fraud in the prepaid card industry, several U.S. states have recently enacted or are considering legislation to combat gift card fraud. These laws aim to provide law enforcement with more tools to prosecute such crimes. Below is a summary of notable legislative actions that are currently being considered by the states, the accompanying bill numbers with a link to the most current version of the bill, a short description of the bill, and its current status.
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State |
Bill |
Summary |
Status |
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California |
An act to add Section 490.45 to the Penal Code, relating to crimes and gift cards. The bill, among other things, would make a person who, with the intent to defraud, alters or tampers with a gift card guilty of forgery, punishable as a misdemeanor or a felony. |
Still with Assembly Committee as of April 1, 2025. |
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Connecticut |
To (1) establish various crimes relating to gift cards, (2) modify statutory provisions relating to the offenses of organized retail theft and accessory to organized retail theft, (3) establish fostering the sale of stolen property as a crime, and (4) modify statutory provisions relating to the civil liability of a person eighteen years of age or older or an emancipated minor who takes possession of certain goods, merchandise or produce without the consent of the owner and with a certain intention, or who alters the price indicia of such goods or merchandise. |
Referred by Senate to Committee on Judiciary as of April 23, 2025. |
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Florida |
Provides criminal penalties for persons who, with intent to defraud, commit specified acts related to gift cards or use for certain purposes gift cards or gift card redemption information; provides enhanced criminal penalties for second or subsequent violation; provides enhanced criminal penalties if value of violation exceeds specified amount. |
April 29, 2025 indefinitely postponed and withdrawn from consideration |
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Florida |
Providing criminal penalties for persons who falsely make, alter, forge, or counterfeit gift certificates with the intent to injure or defraud a person, etc. |
May 3, 2025 indefinitely postponed and withdrawn from consideration |
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Florida |
Providing criminal penalties for persons who, with the intent to defraud, commit specified prohibited acts related to gift cards; providing criminal penalties for persons who, with the intent to defraud, use for certain purposes gift cards or gift card redemption information; providing enhanced criminal penalties, etc. |
As of April 29, 2025 the bill passed both houses of the Legislature, and was delivered to the Governor. |
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Georgia |
Establishes the crime of gift card theft, forgery, and fraud and provides penalties; to provide for definitions; and to provide for penalties for violations. |
April 2, 2025 indefinitely postponed and withdrawn from consideration. The legislature is currently in recess. |
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Iowa |
Establishes the crime of theft, forgery, and fraud and provides for criminal penalties involving a gift card. |
As of March 13, 2025 this passed both the House and the Senate. It was signed by the Governor on April 18, 2025. It is effective July 1, 2025. |
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Kansas |
Amending KSA 21-5828 to modify criminal use of a financial card to include certain conduct involving gift cards; concerning crimes, punishment and criminal procedure. |
March 19, 2025 was referred to committee for consideration of proposed amendments. The legislature is currently in recess. |
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Kentucky |
Amend KRS 434.560 to define terms; create a new section of KRS 434.550 to 434.730 to establish the offense of tampering with a gift card. Amend KRS 434.580 and 434.650 to prohibit theft, receipt and fraudulent use of a gift card. |
March 4, 2025 sent back to House committee on Small Business and Information Technology. |
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Louisiana |
Creates the crime of theft of gift cards or gift card redemption information. |
On June 4, 2025 this bill was signed by the Governor and becomes effective on August 1, 2025. | |
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Maryland |
Prohibiting a person from taking a certain gift card from another or receiving a gift card with the intent to use, sell, or transfer the gift card in a certain manner; prohibiting a person from receiving a gift card that the person knows was lost, mislaid, or delivered under a mistake and retaining possession in a certain manner; prohibiting a person from selling and buying a gift card under certain circumstances. |
No movement since hearing before the Senate Judicial Proceedings Committee on February 26, 2025 |
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Massachusetts |
Establishes penalties for certain crimes involving a person who, with intent to defraud, alters or tampers with a gift card, acquires or retains possession of a gift card or gift card redemption information without the consent of the cardholder. |
On February 27, 2025 this was referred to the Joint Committee on Judiciary. | |
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Minnesota |
Adds tampering with the stolen retail merchandise to the crime of organized retail theft. Specifies the value stolen in gift card fraud means the greatest amount of economic loss the owner of the property might reasonably suffer, including the full monetary face value or potential value for variable-load gift cards. Defines closed-loop gift card and open-loop gift card. |
April 7, 2025 HF 3155 first reading in the House and referred to the Public Safety Finance and Policy Committee; April 9, 2025 SF 3338 first reading in the Senate and was referred to the Judiciary and Public Safety committee. The legislature is currently in recess. |
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New Hampshire |
SB 258 LSR 1041 |
Establishing crimes of theft and fraudulent retail transactions related to the fraudulent use of gift cards. |
As of May 15, 2025 this passed both the House and the Senate. |
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Texas |
(companion Bill to SB 1300) |
Relating to the prosecution and punishment of the criminal offense of organized retail theft; increasing criminal penalties. |
April 24, 2025 testimony was taken in the Criminal Jurisprudence subcommittee and it remains pending with that subcommittee. The legislature is currently in recess. |
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Texas |
SB 1300 (companion Bill to HB 3167) |
Relating to the prosecution and punishment of the criminal offense of organized retail theft; increasing criminal penalties. |
As of June 1, 2025 this was sent to the Governor by the Senate for approval, veto, or it can become law if the governor does not sign or veto it within 10 days after delivery to him. |
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Texas |
Relating to the creation of the offense of fraudulent use, possession, or tampering with a gift card, gift card packaging, or gift card data or redemption information. Establishes that a person commits an offense if they, with intent to harm or defraud acquire or retain a gift card or redemption information without consent from the cardholder, card issuer, or gift card seller, alter or tamper with a gift card, or use or attempt to use a fraudulently obtained or altered gift card to obtain goods, services, or anything of value. |
This Bill was signed by the governor on May 13, 2025 and is effective on September 1, 2025. |
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Washington |
Requires that the value of a gift card or gift card redemption information shall be deemed the greatest amount of economic loss the owner of the gift card or gift card redemption information might reasonably suffer, including the full monetary face value or potential value for open-loop gift cards. Deterring criminal conduct involving gift cards. |
As of February 3, 2025 this bill was still pending as a first reading with the Community Safety subcommittee in the House and the Law & Justice subcommittee in the Senate. The legislature is currently in recess. |
These legislative efforts reflect a growing recognition of the need to address gift card fraud as a serious crime. By incorporating gift cards into existing financial fraud statutes, states aim to reduce the incidence of such fraud and enhance consumer protection. The ongoing development and implementation of these laws indicate a proactive approach to combating these consumer crimes including those that are a significant component of organized crimes. Card Compliant will continue to monitor the progress of these bills and any additional bills introduced.
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