Technology

Santa Rosa Police Dismantle Major Gift Card Fraud Scheme, Two Southern California Men Charged

By Eric Tanaka

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Santa Rosa Police Dismantle Major Gift Card Fraud Scheme, Two Southern California Men Charged

In a notable takedown of an elaborate scamming operation, the Santa Rosa Police Department’s (SRPD) Property Crime Investigations Team recently arrested two men in an extensive gift card fraud scheme. As per a news release from the Santa Rosa Police Department, the unit, aided by the SRPD Real Time Crime Center, seized around 25,000 compromised gift cards, making it one of the most significant hauls of its kind in California.

The duo, named as El Monte resident Yongsheng Zhao, 29, and Zhipeng Li, 33, from Monterey Park, reportedly engaged in “gift card draining,” a scam involving the manipulation of gift cards at retail outlets and stealing funds soon after the cards’ activation. The investigation, which spanned multiple agencies, led to the suspects using Flock Safety Automatic License Plate Readers, a technology that the SRPD insists captures objective evidence without infringing on individual privacy. According to the SRPD, the suspects hit over 200 CVS stores in the state, with the captured loot including some $7,000 in cash and detailed records of their expansive operation.

Further investigation allowed the SRPD to link the compromised gift cards to a string of CVS locations and a hotel room in Hayward, where additional cards were discovered. Both suspects face several felony charges, including burglary, grand theft, and conspiracy, and although Zhao has since been released on bail, Li remains in custody.