AUSTIN – New laws – including ones empowering the Financial Crimes Intelligence Center (FCIC) as the primary entity overseeing investigations into gas pump skimming, motor fuel theft, and payment fraud, as well as removing barriers for prosecuting payment card crimes and creating criminal charges for gift card crimes – will go into effect on September 1. Additionally, the legislature has authorized the FCIC to more than double its staff to expand the fight against organized financial crime.
One of the new laws that took effect immediately when the governor signed it on May 27 puts the FCIC in charge of carrying out the protocol for reporting and addressing all credit/debit card skimmers and creates civil and criminal penalties for those who refuse to cooperate in a skimmer investigation.
The new laws:
- SB 2371 expands the scope of the FCIC’s authority to include oversight of ATMs, point-of-sale terminals, and virtual currency kiosks and creates a clear framework for defining, reporting, and addressing the presence of payment card skimmers. It also establishes civil and criminal penalties for anyone impeding skimmer investigations. Under the law, which took effect immediately upon the governor’s signature on May 27, the FCIC will work with the Texas Department of Licensing and Regulation (TDLR) to create rules for reporting skimmer discoveries. The law also:
- Requires service technicians who find skimmers to report them to both the FCIC and the affected merchants and requires merchants to disable the affected terminals and report the skimmers to law enforcement.
- Creates civil penalties of up to $5,000 per day plus criminal offenses for establishment operators who refuse to cooperate with investigations. Disposing of a skimmer could bring a felony charge.
- Enhances confidentiality measures to protect the identities of those who report suspected skimmers.
- HB 201 broadens the FCIC’s scope by including crimes related to fuel pump payment card skimming and fuel theft, alongside the existing focus on credit/debit card fraud. The law:
- Establishes clear definitions for terms related to motor fuel crimes to emphasize the illegal manipulation of fuel payment systems (skimmers and pulsers that cause fuel pumps to dispense fuel without payment).
- Redefines the center’s purposes to serve as a primary entity coordinating responses to criminal activities related to both card fraud and motor fuel theft.
- Mandates the center to assist law enforcement, financial institutions, and merchants in creating strategies to detect and respond to threats posed by skimmers and fuel manipulation devices.
- SB 1497 allows peace officers to search skimmers and other devices used for illegal data collection without having to obtain a search warrant. Previously, skimmers were included in the category of wireless communications devices, which require a warrant to search. The law removes these illegal devices from that category, while preserving protections already in place to prevent officers from searching someone’s cellphone or other wireless communications devices without a warrant.
- HB 272 allows for the prosecution of credit or debit card crimes in the county where the crime was committed or in the county where the victim resides, making it easier to take legal action in cases that may involve multiple jurisdictions. The law also adds credit/debit card crimes to the list of offenses where a prosecuting attorney does not have to prove at trial that a defendant acted with the intent to defraud any particular person.
- SB 1499 expands the definition of payment fraud to include check fraud and electronic fund transfers. Under the new law, the FCIC is tasked with planning, coordinating, and integrating responses to payment fraud activities, including those involving skimming devices. The center can collaborate with other agencies and provide training, public outreach, and resources to combat these crimes effectively. The law also requires the FCIC to submit an annual report detailing its activities, including data on the number of fraud incidents in Texas and a plan for tackling payment fraud.
- SB 1498 modernizes the civil asset forfeiture process in Texas to include digital assets by updating the definition of ‘contraband’ to include digital currencies, non-fungible tokens (NFTs), and stablecoins. The “proceeds” from criminal activities now include any increased value derived from digital currency held by anyone accused or convicted of a crime. To enhance security and oversight, the law also details the process for law enforcement to use when seizing these assets. Most importantly, this revision allows for asset forfeiture proceedings involving cryptocurrency to take place in the county where the seizure was initiated. This is significant because only a handful of law enforcement agencies are fully capable of working crypto money laundering. This will allow the FCIC to assist agencies across the state in recovering funds stolen from victims of various frauds.
- SB 1809 addresses gift card crimes by creating the new criminal offense of ‘fraudulent use or possession of a gift card or gift card redemption information’. The law also establishes clear penalties for offenders convicted of gift card crimes. The penalties, based on the value of the fraudulent activity, are:
- Class C misdemeanor for amounts under $100.
- Class B and Class A misdemeanors for amounts between $100 and $2,500.
- State jail felonies and up to first-degree felonies for values reaching $300,000 or more.
- SB 1281 amends the mail theft statute, addressing the theft of checks from the mail. The new law increases the range of punishment based on the number of checks stolen:
- State jail felony for up to five stolen checks
- Third degree felony for six to nine stolen checks
- Second degree felony for ten to 49 stolen checks
- First degree felony for 50 or more stolen checks
Additionally, this new law includes penalties for the possession or manufacture of a U.S. Postal mail receptacle key or lock.
All the new laws take effect September 1, 2025, except for SB 2371, which took effect May 27.
About the FCIC
The FCIC was created in 2021 by House Bill 2106, 87th Legislature, and it operates as a partnership between TDLR and the Smith County District Attorney’s Office. The Smith County District Attorney’s Office runs day-to-day operations at the FCIC, while TDLR reimburses Smith County for operating expenses related to the Center. All criminal investigations are handled by the FCIC in coordination with local law enforcement. TDLR does not handle the investigation or prosecution of criminal cases related to skimmer fraud or fuel theft.
To administer these new laws, in some cases the agency must first develop rules for implementation. Some bills include specific directions on the rules that TDLR must adopt and the deadline for adoption. The public can participate in the process when proposed rules are published in the Texas Register and at meetings of the Texas Commission of Licensing and Regulation when the rules are discussed and brought up for a vote. The rulemaking process can take several months to complete.
For a full list of laws affecting TDLR licensees, please see the TDLR website: https://www.tdlr.texas.gov/legislation.htm.
To keep informed about proposed rule changes, TDLR urges the public to sign up for email updates tailored to specific licensing programs: https://public.govdelivery.com/accounts/TXDLR/subscriber/new. Select “important notices” for the programs of interest.