GRAFTON — The Grafton Village Police Department arrested a 52-year-old man from Chicago this week. Investigators said Guangguo Zhu was involved in a large-scale gift card fraud.

Officer Patrick Brock with GPD said 1,807 gift cards were seized in the arrest. Zhu faces three counts of forgery, three counts of identity theft and one count of credit card fraud.

Grafton Police Department

“The person responsible arrested in this case was likely a low-level individual in an organized crime group,” Brock said.

Investigators say the man returned the previously stolen gift cards to the shelves at the Walgreens in Grafton and the Walgreens in Cedarburg.

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Grafton police uncover gift card scam

“This is a well-known gift card scam known as gift card dumping,” Brock said.

According to researchers, criminals steal gift card information, slap a new label on the badge, and place the cards back on the shelves. Once the card is activated, they can transfer the money to their bank account.

“It’s terrible,” Grafton resident Cindy McGaw said.

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McGaw worked in retail fraud prevention.

“It’s very common. Thieves, you find something to stop it and they’re one step ahead of you,” McGaw explained.

TMJ4’s Megan Lee asked McGaw how shoppers can stay safe this season. He said: “I would tell them to actually look at the back to see if it has been tampered with, as we talked about keeping your receipt and getting it from the back.”

GPD recommends checking the balance of the gift card if you recently purchased it from Walgreens in Grafton.

If you believe you have been the victim of gift card fraud at Walgreens in Grafton, you should call Grafton Police at 262-375-5320.

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