LYNNWOOD, Washington — A woman was arrested Monday by detectives from the Lynnwood Police Department and prosecutors from the Snohomish County District Attorney’s Office on fraud charges.
The 28-year-old woman is believed to be the mastermind of a “sophisticated” gift card scam. She was arrested at an apartment in the 14600 block of 179th Avenue SE in Monroe.
According to investigators, the woman drained hundreds of victims of their gift card balances. During their investigation, they estimated that one company estimated the loss to their business and customers at nearly $100,000.
When authorities searched her home, they found several stolen firearms, a credit card embosser, tools for cashing counterfeit checks, and about a pound of illegal drugs. Authorities also seized about $40,000 in cash.
The woman was arrested on charges of organized shoplifting, identity theft, unlawful possession of a firearm, possession of a stolen firearm, financial fraud and manufacturing/delivery of illegal drugs. Police officials said she was released on $200,000 bail but has since been released.
KOMO News has not yet released the suspect’s name, but authorities say she has a criminal record: “She has been convicted of eight felonies, two aggravated misdemeanors and one misdemeanor.”
Lynnwood police and Snohomish County court documents indicate Victoria’s Secret was the targeted store. Alderwood Mall was one of the stores targeted, but the suspect is also linked to crimes at stores in Bellevue, Auburn and Tacoma.
Court documents detail the investigation and what authorities say the suspect did to pull off the scheme. In April, Lynnwood police received a call from a Victoria’s Secret investigator and fraud detective.
Court documents also added that “sequencing” of the gift cards was done. “Sequencing occurs when an individual receives one or more gift card numbers and figures out the next logical gift card number in the sequence in the hopes that the next gift cards in the sequence were legitimately purchased and have an available balance.”
“People were paying with these gift cards where they presented their barcode or with their physical gift cards, and often there was nothing left on the gift card,” said Lynnwood Police spokeswoman Maren McKay.
The documents contained further evidence: surveillance videos, conversations about the alleged gift card scheme, and transactions dating back to October of last year.
Detectives advise gift card owners to use them sooner rather than later so there is less time for the gift cards to be accessed and compromised.
Authorities are continuing to investigate the case and expect further charges and arrests.
