The Michigan House of Representatives on Tuesday approved bipartisan legislation to combat gift card fraud. The legislation is sponsored by state Rep. Mike Harris, R-Waterford, and state Rep. Samantha Steckloff, D-Farmington Hills.

“When someone spends their hard-earned money on a gift card for family or friends, they should be able to expect that the money will be there when their loved one goes to buy something,” Harris said.

It’s not just about stopping theft, it’s about cracking down on organized crime, which has been using sophisticated methods to covertly steal gift card pins before the cards are bought, so they can be used after the cards are activated to buy stuff online and then resell it or return it for cash.

“The techniques these criminals are using to exploit people are evolving,” said Harris, who is a retired police sergeant. “Unsuspecting people don’t even know they are getting robbed until they get to the checkout and the money isn’t there. This is about holding criminals accountable for preying on innocent people.”

If signed into law, House Bills 4598 and 4599 would add gift card fraud to Michigan’s existing laws dealing with organized retail crime, making it a felony punishable by up to five years in jail and a $5,000 fine. The change will make it easier to prosecute anyone who steals a gift card or uses a stolen gift number, or who tampers with a gift card with intent to defraud.

“Gift card fraud is not a trivial inconvenience – it’s a growing crime wave,” Steckloff said. “By the FTC’s account it represents several hundred million dollars stolen from vulnerable citizen’s pockets. By passing these bills, we will without question be making Michigan better and safer by ensuring that consumers, especially seniors and families, have stronger protections. The package will also reduce losses to retailers, translating into fewer costs passed on to customers. These bills are common sense solutions to a growing problem – by passing these bills the House is standing up in a bipartisan way to protect the citizens of Michigan.”

Both bills passed with overwhelming bipartisan support, with a tally of 103 votes in favor to just one opposed. They now go to the Senate for further consideration.