COSHOCTON COUNTY, Ohio — A man was indicted Monday on 309 felony charges related to a gift card counterfeiting scheme, according to Ohio Attorney General Dave Yost.
Yost’s office said 32-year-old Ming Xue, of Hunan, Fujian, faces 308 felony counts of counterfeiting and one count of engaging in a pattern of corrupt activity.
Authorities said Xue is believed to have entered the United States illegally four months ago from China.
Xue’s indictment stems from his arrest on Dec. 5 by Coshocton County Sheriff’s Office deputies.
The deputies were participating in the “Shop with a Cop” program for area children in need when Xue was allegedly seen hiding unloaded gift cards on his body. According to Yost’s office, the deputies found hundreds of additional gift cards in his vehicle.
He is suspected of participating in a scheme with others who reportedly stole unloaded gift cards, altered them and placed them back on the store’s display racks.
“This man was clearly on a nefarious mission to rip off as many Ohio consumers as possible,” Yost said. “Hats off to the deputies who followed their instincts and got him off the streets before he could inflict more harm.”
Xue will be arraigned Tuesday in Coshocton County Common Pleas Court.
This isn’t the first time a gift card has been reported in central Ohio.
Last October in Worthington, CVS employees called the Worthington Division of Police saying that two men were stealing cards. While investigating, police found thousands of gift cards inside their car.
How the gift card scam works
Thieves take the gift cards from the store, then carefully get the PINs from them before sealing them back up and putting the gift cards back on the shelves.
“They are scanning them, putting them into their computer. They have apps that alert them that that card was activated and immediately they are taking the money and removing it off the gift cards,” Worthington Police Detective Elizabeth told 10TV’s Lacey Crisp in October.
When a consumer goes to use the gift card, there isn't any money on it.
How to protect yourself from theft
Keep the receipt when buying a gift card. Keep the physical card as well. These may help prove that the card was paid for and activated if problems arise later.
Inspect the card carefully before buying it to be sure it has not been tampered with. Some scammers open the card to get the numbers on the back so they can take the money when the card is later activated.
Who to contact if you are the victim of a gift card scam:
Victims should immediately notify the organization that issued the card as soon as they realize they have bought gift cards and provided the numbers to scammers or have purchased gift cards with no balance. There is typically a customer service number on the back of the card.
Better Business Bureau - file a complaint with your local BBB if you lost money or report a scam online at BBB.org/scamtracker.
Federal Trade Commission (FTC) - file a complaint online at FTC.gov or call 877-FTC-Help.
Internet Crime Complaint Center (IC3) - file a complaint online at IC3.gov/complaint.
Consumer Financial Protection Agency – file a complaint online at ConsumerFinance.gov/complaint or call (855) 411-2372.
