Lynnwood police arrest ‘mastermind’ behind elaborate gift card fraud scheme

LYNNWOOD, Wash. — Lynnwood Police say they’ve arrested the “mastermind” behind an elaborate gift card fraud scheme. Police say the scheme targeted roughly 100 victims.

Women’s fashion retailer Victoria’s Secret estimated its stores and customers lost nearly $100,000. Victoria’s Secret stores were targeted in Lynnwood, Bellevue, Auburn and Tacoma, as well as stores in Oregon, Colorado and Arizona.

28-year-old Hayley Brown was arrested Monday at an apartment in Monroe. While there, detectives also found several stolen guns, tools used to create fake checks, approximately one pound of illegal drugs and roughly $40,000 in cash.

Court documents allege that one way suspects stole the funds was through a process called “sequencing.” That’s when suspects obtain gift cards and use the numerical sequences to guess numbers on other gift cards.

Brown has previously been convicted of eight felonies, according to Maren McKay, with Lynnwood Police Public Affairs.

Brown booked for Organized Retail Theft, Identity Theft, Unlawful Possession of Firearm, Possession of Stolen Firearm, Financial Fraud, and Manufacture/Delivery of Illegal Drugs.

McKay said there could be more arrests related to this case in the future.

Gift card draining scams are more common than you might think. Nearly one in four U.S. consumers has given or received a gift card with no funds on it, according to AARP.

It happened to Samantha Jerome a few years ago during the holidays.

“It was a scam,” she said. “Someone had extracted the money out of the cards.”

Jerome lost a few hundred dollars in total. She now avoids buying gift cards altogether.

If you’re buying gift cards in person, experts urge you to shop at stores where gift cards are kept in secure locations. Always inspect the gift card before purchasing it and always save your receipt.

©2024 Cox Media Group