Gift card scam crime ring; Chicago man charged in Ozaukee County
GRAFTON, Wis. - Police arrested a man in connection to a gift card scam on Thursday, and Ozaukee County prosecutors say he was part of a crime ring that goes well beyond the state line.
The bust began when a Walgreens store manager in Grafton noticed something odd on Thursday afternoon.
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"(The manager) alerted us to a man that was in the store that they believed to be placing gift cards back on the rack," Grafton Police Public Information Officer Patrick Brock said.
When officers arrived at the store, they said the man – now identified as 52-year-old Guangguo Zhu of Chicago – was gone. But he wasn't far.
Gift cards display at Walgreens
"Cedarburg, which is just adjacent to us, also received the call that the man was over there," said Brock.
Officers pulled Zhu over as he left the Cedarburg Walgreens. Then, they searched his car and found duffle bags with 1,807 gift cards inside. Prosecutors said Zhu did not intend to use any of the gift cards for his own shopping.
Court records indicate Zhu is part of a large-scale gift card scam. Scammers will either steal or obtain gift cards illegally, retrieve the card numbers and PIN, and place them inside stores for people to buy.
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"Once it is activated, then the money gets transferred via the dark web or what’s called a ‘bot’ to the scammer. Then that money becomes theirs," Brock said.
While officers put the scam to a stop in Ozaukee County, detectives said Zhu's vehicle has been spotted all over Wisconsin – as well as in Indianapolis and Chicago – over the past month.
"The gentleman that was arrested was probably on the lower ring of this criminal enterprise," said Brock.
Locations tied to gift card scam ring
Police urge people to inspect any gift card before buying it in a store.
"If you feel any sticker or barcode that’s been placed over it, that gift card is likely going to be compromised," said Brock.
Zhu is now charged in Ozaukee County with four counts of forgery and three counts of identity theft. A court commissioner set his bond at $250,000.