Published on 6/1/2026, 12:00:00 AM
Gift Card Fraud in Maryland: The New Gift Card Forgery Law
Maryland created a brand new criminal offense aimed squarely at gift card scams. Starting October 1, 2026, it is a crime to tamper with a gift card or its packaging if you are trying to defraud someone. The law is part of Chapter 456 of the 2026 Laws of Maryland, and it does two things at once: it creates a standalone charge called gift card forgery, and it sets out a specific way to calculate how much a gift card is “worth” for other criminal charges.
If you have been accused of messing with gift cards at a retail store, or you are just trying to understand what changed, here is a plain English breakdown of the new law.
What the New Law Actually Bans
The core of the new offense lives at Criminal Law Section 8-409. The rule itself is short:
A person may not, with the intent to defraud another, alter or tamper with a gift card or its packaging.
Two pieces have to be present for this to be a crime:
- You altered or tampered with a gift card or its packaging, and
- You did it with the intent to defraud another person.
That second part matters. The State has to prove intent. Picking up a gift card, scratching off a panel by accident, or handling cards as a store employee is not a crime on its own. The law targets the scheme behind the conduct, which is usually draining or hijacking the value on a card before a customer ever uses it.
How Gift Card Tampering Scams Usually Work
The new statute does not list specific techniques, but the conduct it describes lines up with the common scams that prompted the law. The classic version is “card draining.” Someone pulls gift cards off a store rack, records the card numbers and activation codes, carefully reseals the packaging, and puts the cards back. When an unsuspecting shopper buys and loads the card, the scammer drains the balance.
Because that scheme involves altering the card or its packaging to pull it off, it fits the language of Section 8-409 directly.
What Counts as a “Gift Card”
The law uses a specific definition, borrowed from Commercial Law Section 14-4901. A gift card means either a closed-loop gift card or an open-loop gift card.
Closed-Loop Gift Cards
A closed-loop gift card is a card, code, or device that is:
- Issued to a consumer on a prepaid basis, mainly for personal, family, or household use, in a set amount (it does not matter if the card can be reloaded), and
- Redeemable at a single merchant or a group of affiliated merchants.
Think of a card that only works at one store or one chain of related stores.
Open-Loop Gift Cards
An open-loop gift card is a card, code, or device that is:
- Issued to a consumer on a prepaid basis, mainly for personal, family, or household use, in a set amount,
- Branded by a payment card network, and
- Redeemable at multiple unaffiliated merchants within that network, or usable at an ATM.
These are the cards that carry a major network logo and work almost anywhere.
What Is Not a Gift Card
The definition specifically leaves out:
- A credit card
- An electronic funds transfer
- Money, a check, a draft, or any other similar paper instrument
So this law is about prepaid gift cards, not general payment fraud. If your case involves a credit card instead, that falls under a different set of statutes. See our breakdown of credit card fraud in Maryland and our page for a credit card theft lawyer.
The Penalty for Gift Card Forgery
Gift card forgery is a misdemeanor. On conviction, the penalty is:
- Imprisonment not exceeding 18 months, or
- A fine not exceeding $500, or
- Both
For a misdemeanor, 18 months of potential jail time is real exposure, even though the fine is modest. A conviction also leaves a fraud-related offense on your record, which can follow you long after the case is closed. If you are dealing with a charge at this level, our overview of misdemeanor defense in Maryland explains how these cases move through the courts.
How Maryland Now Values a Gift Card for Theft Charges
The new law also changed how a gift card’s value is calculated. This sits at Criminal Law Section 7-103, which is the general rule for figuring out the “value” of property in theft cases. Value is a big deal in theft law because it usually decides how serious the charge is.
For gift cards specifically, the value is the greatest of these three figures:
- The highest value listed on the face of the gift card or its packaging. If no value is listed anywhere on the card or packaging, the law sets the value at $100.
- The value the defendant claimed the card was worth. If someone accused of the crime represented the card as having a certain value, that number counts.
- The amount of loss anyone suffered in connection with the use of the gift card.
The State gets to use whichever of those three is highest. That can push the value of a single card up quickly, and value is what separates a lower-level theft from a more serious one. For how value drives the severity of a theft charge, see our guide to Maryland theft charges and our main Maryland theft lawyer page.
Why This Law Was Passed
Gift card draining became a widespread retail problem, and prosecutors did not always have a clean charge that matched the conduct. By naming gift card forgery as its own offense and writing a specific valuation rule, Maryland gave law enforcement a tool built for these schemes. The valuation rule in particular makes it easier to charge organized operations, which often hit many cards at once. If your situation involves coordinated retail activity, our post on organized retail theft in Maryland covers how those larger cases get built.
Defending a Gift Card Forgery Charge
Every case is different, but a few themes show up in fraud cases like these:
- Intent to defraud. This is the heart of the charge. Tampering by itself is not enough. The State has to prove you acted with the goal of defrauding someone. Handling, mistakes, and innocent explanations all matter.
- Identity and connection. Card draining is often charged off store video, packaging, and circumstantial evidence. Tying a specific person to a specific altered card is not always straightforward.
- What “tampering” means. The State has to show the card or packaging was actually altered or tampered with, not just touched or moved.
- How value was calculated. Because value can drive related theft charges, the way the State arrives at a number is worth challenging.
These cases can also involve related charges depending on the facts. Our pages on fraud and bad check charges and the firm’s broader Maryland criminal defense practice explain how overlapping charges are handled.
Frequently Asked Questions
When does the gift card forgery law take effect?
The Act takes effect October 1, 2026. Conduct before that date is handled under the laws that existed at the time.
Is gift card forgery a felony or a misdemeanor?
It is a misdemeanor. The maximum penalty is 18 months in jail, a $500 fine, or both.
Does this law apply to credit cards?
No. The definition of a gift card specifically excludes credit cards, electronic funds transfers, and money, checks, drafts, or similar paper instruments. Credit card cases fall under separate statutes. See our credit card fraud overview.
What if no dollar amount is printed on the card?
For valuation purposes under Criminal Law Section 7-103, if no value is listed on the gift card or its packaging, the law treats the value as $100, unless one of the other two measures (what the defendant claimed it was worth, or the actual loss) is higher.
Can a gift card forgery conviction be expunged?
Expungement depends on the outcome and timing of your case. Our expungement in Maryland page walks through who qualifies and when.
If you or a family member is facing a gift card forgery or related fraud charge in Maryland, the details matter, especially the question of intent. At FrizWoods, Max Frizalone is a former prosecutor and Luke Woods has decades of trial experience across Maryland courts. Contact us for a free, confidential consultation.
