A subtle movement captured on grainy CCTV footage shows a man in front of a display of colorful gift cards. He reaches into his pockets repeatedly, placing cards back on the supermarket shelves. This incident was one of the key moments documented by Coles’s fraud team as they built a case against the individual, who was accused of manipulating Apple gift cards in their stores.
According to information obtained by ABC, the man, originally from Taiwan, was ultimately convicted for his actions after Coles collaborated with law enforcement to surveil him, leading to his apprehension with a collection of altered gift cards.
“The issue of gift card tampering and fraud is a growing concern impacting retailers and consumers both in Australia and globally,” Coles stated in a communication to ABC News. “Coles is committed to addressing this problem with the utmost seriousness.”
An investigation conducted by ABC has revealed that tampered gift cards are being sold at some of Australia’s largest supermarket chains, with legal repercussions being pursued over the matter.
What constitutes gift card tampering? This week’s ABC investigation uncovered reports from customers across Australia regarding tampered gift cards, potentially connecting the issue to a broader international scam. In the United States, Homeland Security has been probing this problem for several years, with a project named Red Hook suggesting links to money laundering in China, as well as human trafficking and even murder.
“All of the top 20 retailers in America have been affected,” stated lead investigator Adam Parks. “Young Chinese nationals have been intercepted and arrested while removing blank gift cards from store displays.”
Parks elaborated that they discovered a sophisticated organized crime network that focused on dismantling the gift cards, stealing their codes, and then returning them to the shelves. “Once the cards were back in the store, unsuspecting consumers would buy them and load funds onto them,” he explained. “The syndicates could then use those cards before the consumers realized what had happened.”
In addition to the CCTV footage shared with ABC News, Coles’s security team recorded the man on multiple occasions at various supermarkets in Sydney during March and April of 2025. In some instances, he was seen taking gift cards from the aisles, while in others, he was returning them. Security personnel eventually discovered numerous tampered Apple gift cards, worth substantial amounts, missing from the shelves.
Following an internal review, Coles reached out to the authorities for assistance.
A victim recounted losing $2,000 through a scam involving Apple gift cards purchased at Coles.
The arrest process began in April when officers from the Campsie Police Area Command started covert surveillance of the suspect. Phone records indicated the man frequently traveled to regional areas of New South Wales, including Goulburn and the Southern Highlands, leading police to suspect he was also involved in tampering in those locations.
On May 9, 2025, police executed a search warrant at the man’s residence in Eastwood, a suburb in Sydney’s west. They discovered a bag containing 47 iTunes gift cards bundled with Post-it Notes, with values ranging from $100 to $500, along with an additional nine cards found in his vehicle.
The man reportedly informed police that he had been contracted by an unidentified criminal organization. Following his arrest, authorities claimed he was involved with 61 Apple and iTunes gift cards valued at over $10,000, leading to charges of five counts of dishonestly obtaining financial advantage and two counts related to dealing with property acquired through criminal activities.
He was denied bail based on concerns regarding the potential for witness tampering and evidence fabrication. On July 22, 2025, he was convicted and received a 15-month suspended prison sentence along with a two-year community corrections order. Attempts by ABC News to reach the man for comment were unsuccessful.
The complexities of addressing gift card tampering in Australia were highlighted by private investigator Ken Gamble, who noted that connecting the various instances of this crime may require more effort. Both the Australian Federal Police and AUSTRAC, the financial crimes regulator, indicated that the issue did not fall within their jurisdiction.
“This is not an issue for the AFP,” a spokesperson stated. The Australian Financial Complaints Authority (AFCA), which manages financial product complaints, also expressed limited authority over gift card issues. Gamble remarked, “While it is certainly theft, law enforcement may prioritize it low due to the monetary value involved. Unless there is compelling evidence of a widespread pattern, resources are unlikely to be allocated effectively.”
In early 2025, Apple modified its gift card packaging to make it more difficult to tamper with. The company defended the changes as a measure to combat fraud but declined to comment further on the issue.
Coles emphasized that eradicating this crime requires collaboration beyond just supermarkets and law enforcement. “Coles collaborates with other retailers, gift card providers, and law enforcement agencies to exchange pertinent information and support investigations into suspected gift card fraud,” the company stated. “We recognize that no single solution will entirely eliminate gift card fraud, and it demands a collective effort from retailers, gift card suppliers, and law enforcement.”
