Payment fraud and scams laws by state

HB 303: Cryptocurrency; measures to prevent fraud by cryptocurrency kiosk operators imposed, penalties established, Alabama Securities Commission authorized to enforce

SB 1351: gift cards; theft; forgery

A person must not acquire possession of a gift card or gift card information without consent of the holder, issuer, or seller, or by exploiting them, or obtain value using such information. A person must not falsely make, complete, alter, possess, or present a forged instrument, including a gift card.

HB 2387: cryptocurrency kiosk; license; fraud prevention

Cryptocurrency kiosk operators must disclose all relevant terms and conditions in the customer's chosen language and obtain acknowledgment. Operators must provide two separate fraud warnings before each transaction and a detailed receipt after. Operators must use blockchain analytics software to prevent fraud, maintain written anti-fraud policies, comply with federal KYC and AML laws, limit new customers to $2,000 daily and existing customers to $10,500 daily, provide 24/7 customer service, and issue full refunds for fraudulently induced transactions if the customer meets specified conditions within thirty days.

SB 302: To create the criminal offense of gift card fraud; and to declare an emergency.

The act creates a criminal offense of gift card fraud. A person is prohibited from obtaining gift card or gift card redemption information, or obtaining information from a card holder or card issuer, with the purpose of depriving the owner of property.

SB 1208: Money laundering: digital assets.

Law enforcement officers or prosecuting agencies may obtain search warrants to seize digital financial assets upon probable cause that they contain proceeds of crime, are traceable to crime, or facilitate crime. Prosecuting agencies must initiate forfeiture proceedings within 180 days of seizure and distribute seized assets to crime victims on a pro rata basis up to their actual losses.

Takes effect 1 January 2027

HB 465: An act to amend title 11 of the delaware code relating to virtual currency.

Adds virtual currency to Delaware's criminal code definitions of property, funds, pecuniary value, and items subject to search and seizure, enabling prosecution of virtual currency theft and money laundering while allowing courts to order disposition of seized virtual currency.

SB 1198: Fraudulent Use of Gift Cards

A person is prohibited from acquiring or retaining possession of a gift card or gift card redemption information without consent of the cardholder, card issuer, or gift card seller; altering or tampering with a gift card or its packaging; devising a scheme to obtain a gift card or redemption information by false pretenses; or using a gift card or redemption information obtained in violation of these prohibitions to obtain money, goods, services, or anything of value, all with intent to defraud.

Took effect 1 October 2025

HB 447: Crimes and offenses; crimes of gift card theft, gift card forgery, and gift card fraud; provide

Any person is prohibited from acquiring or retaining possession of a gift card or gift card redemption information without consent with intent to defraud (gift card theft), altering or tampering with a gift card or its packaging with intent to defraud (gift card forgery), devising a scheme to obtain a gift card through false pretenses with intent to defraud (gift card fraud), or using such obtained gift cards with intent to defraud.

SF 449: A bill for an act relating to digital financial asset transaction kiosks and including penalties, and effective date and applicability provisions.

SF 266: A bill for an act relating to theft, forgery, and fraud involving a gift card, and providing penalties. Effective date: 07/01/2025.

HB 2591: Authorizing financial institutions to report suspected financial exploitation of an adult account holder to a designated agency, notify any adult designated as a trusted contact by such account holder of suspected financial exploitation and place a temporary hold on certain transactions or disbursements. Enacting the virtual currency kiosk consumer protection act, providing definitions, and establishing requirements for virtual currency kiosk operators. Prohibiting the office of the state bank commissioner or any other state agency from becoming a receiver for a technology-enabled fiduciary financial institution that becomes insolvent or declares bankruptcy. Providing that earned wage access service registrants are subject to the Kansas financial institutions information security act, and eliminating certain stipulations relating to the payment of negotiable instruments on Saturday afternoons or holidays.

Financial institutions may report suspected financial exploitation of adult account holders to designated agencies and notify trusted contacts. Financial institutions may place temporary holds on transactions for up to 10 business days if they reasonably believe the transaction furthers financial exploitation, extendable to 30 business days if requested by investigating agencies.

SB 130: AN ACT relating to gift cards.

A person must not tamper with a gift card or its packaging, or possess or use a gift card known to be tampered with, with intent to defraud. A person must not take a gift card without consent of the cardholder, issuer, or merchant, or receive such a card knowing it was taken. A person must not obtain a gift card or gift card redemption information by false or fraudulent pretenses.

SB 38: CRIME/PUNISHMENT: Creates the crime of theft of gift cards or gift card redemption information. (8/1/25) (EN SEE FISC NOTE GF EX)

No person shall misappropriate or take a gift card or gift card redemption information without consent of the cardholder, card issuer, or card seller. No person shall alter, tamper with, or duplicate a gift card, gift card redemption information, or gift card packaging with intent to defraud. No person shall devise or participate in a scheme to obtain a gift card or gift card redemption information by false or fraudulent pretenses.

HB 752: Criminal Law - Theft and Fraud Crimes - Valuation and Forgery of Gift Cards

A person may not, with the intent to defraud another, alter or tamper with a gift card or its packaging. For theft crimes, the value of a gift card is determined as the greatest of: the highest value listed on the gift card or its packaging, or $100 if no value is listed, or the value the defendant represented, or the actual loss incurred.

Took effect 1 October 2026

SB 437: Criminal Law – Theft and Fraud Crimes – Valuation and Forgery of Gift Cards

A person may not, with the intent to defraud another, alter or tamper with a gift card or its packaging. For valuation purposes in theft crimes, the value of a gift card is the greatest of: the highest value listed on the gift card or its packaging, $100 if no value is listed, the value the defendant represented, or the actual loss incurred.

Took effect 1 October 2026

HB 4599: Crimes: organized; certain definitions related to gift card fraud; provide for. Amends 2012 PA 455 (MCL 752.1081 - 752.1087) by adding sec. 3a. TIE BAR WITH: HB 4598'25

Adds definitions to Michigan's organized retail crime law: gift card (physical or digital, activated or inactivated), gift card redemption information (unique access data), issuer (person issuing gift cards), and seller (merchant selling gift cards).

LB 838: Change provisions relating to the financial exploitation of vulnerable or senior adults, rules and codes of procedure, decedents' estates, inheritance taxes, deceptive trade practices, the Age-Appropriate Online Design Code Act, the Equipment Business Regulation Act, the Nebraska Money Transmitters Act, and the Nebraska Uniform Trust Code and provide for rounding of certain cash transaction amounts

A social media platform that accepts payment for advertising must establish identity verification for advertisers, fraud detection systems, unlawful impersonation detection, measures to prevent repeated offenses, a user reporting tool, and a law enforcement reporting process. After a fraudulent advertisement is reported, the platform must investigate within five business days and remove it within five business days of determination.

LB 717: Adopt changes to federal law regarding banking and finance, change provisions relating to control of certain banks and trust companies, digital asset depository institutions, interest rates on certain loans, installment loans, mortgage loan originators, mortgage bankers, and the Nebraska Money Transmitters Act, and change references to the Nebraska Money Transmitters Act in the Controllable Electronic Record Fraud Prevention Act

Amends the Nebraska Money Transmitters Act to add payroll processing services as an exemption for persons employing fewer than twenty full-time employees or serving fewer than fifty Nebraska employees, subject to criminal history and licensing restrictions.

LB 559: Provide for offenses relating to skimmer devices and criminal enterprises involving financial offenses

Persons must not install skimmer devices on automated banking devices or point-of-sale terminals without authorization with intent to defraud. Persons must not use skimmer devices on such devices with intent to defraud. Persons engaged in continuing criminal enterprises involving financial transaction offenses must not commit such offenses in concert with two or more others while in a leadership position and obtaining substantial income.

LB 609: Adopt the Controllable Electronic Record Fraud Prevention Act, require notice of potential fraud for purchasers of gift certificates and gift cards, and change provisions relating to search warrants

Controllable electronic record kiosk operators must obtain a money transmitter license, report kiosks as authorized delegates, use blockchain analytics software to prevent fraud, employ a full-time compliance officer, maintain antifraud policies, disclose transaction terms and fraud warnings to customers, provide receipts, limit daily transactions to $2,000 for new customers and $10,500 for existing customers, cap fees at 18%, and offer live customer service Monday-Friday 7am-9pm. Sellers of gift certificates and gift cards must provide fraud notices at point of sale.

HB 1175: relative to the offense of use of scanning device or reencoder to defraud.

A person is prohibited from knowingly using a scanning device to access, read, obtain, memorize, or store information encoded on the magnetic strip or integrated circuit chip of a payment card without permission of the authorized user and with intent to defraud. A person is also prohibited from knowingly using a reencoder to place such information onto a different card without permission and with intent to defraud.

Takes effect 1 January 2027

SB 258: establishing crimes related to the fraudulent use of gift cards.

S 3587: Upgrades, and in some circumstances provides for extended terms of imprisonment for, certain retail theft crimes, addresses gift card fraud, and authorizes new Attorney General initiatives to address organized retail theft.*

Retail mercantile establishments must train employees on identifying and responding to gift card fraud and display notices about gift card scams. Third-party gift card resellers must record and maintain transaction information for three years. Retail establishments must use secured packaging for open- and closed-loop gift cards.

SB 1980: Crimes and punishments; creating certain offenses related to gift cards and gift certificates. Effective date.

Any person is prohibited from knowingly and willfully acquiring or retaining possession of a gift card, gift certificate, or redemption information without consent of the cardholder or issuer. Any person is prohibited from knowingly and willfully altering or tampering with a gift card, gift certificate, or their packaging. Any person is prohibited from knowingly and willfully devising a scheme to obtain redemption information by false or fraudulent pretenses.

Took effect 1 November 2026

SB 98: prevent virtual currency kiosk fraud.

Licensees operating virtual currency kiosks must be licensed under chapter 51A-17, establish daily transaction limits of one thousand dollars and thirty-day limits of ten thousand dollars, provide full refunds to fraud victims within seventy-two hours, charge no more than twenty-five percent per transaction, verify user identity before accepting payment, and employ fraud-detection software.

Took effect 1 July 2026

SB 2371: Relating to skimmers on electronic terminals; authorizing a civil penalty; creating criminal offenses.

Service technicians and service companies must notify the center and merchant upon discovering a skimmer. Merchants must disable affected electronic terminals, notify law enforcement and the center, and protect terminals from tampering. Merchants must cooperate with center or law enforcement investigations and allow inspection and alteration of terminals.

SB 1809: 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.

A person commits an offense if they acquire or retain possession of a gift card, digital imprint, or gift card redemption information without consent of the cardholder, card issuer, or gift card seller with intent to harm or defraud another; alter or tamper with a gift card or packaging; use counterfeit gift cards or improperly obtained redemption information; or transport unactivated gift cards into retail locations and place them on display to entice purchase.

Took effect 1 September 2025

HB 190: Electronic fund transfers; Office of AG shall convene work group to review fraudulent activity, etc.

A financial institution that receives knowledge of fraudulent transactions or occurrences on an account shall take reasonable measures to prevent the continuation of such fraudulent transactions or occurrences, including by providing consumer education materials to the account holder, temporarily suspending all activities on the account, prohibiting further fraudulent transactions or occurrences, and reversing fraudulent transactions or occurrences on the account.

HB 4990: Relating to crimes using gift cards

Any person is prohibited from acquiring or retaining possession of a gift card or gift card redemption information without consent of the cardholder, card issuer, or gift card seller with intent to defraud. Any person is prohibited from altering or tampering with a gift card or its packaging with intent to defraud. Any person is prohibited from devising a scheme to obtain a gift card or gift card redemption information through false or fraudulent pretenses with intent to defraud.