A schoolboy who was allegedly snatched while walking home on the Gold Coast and taken across the border and into New South Wales has been reunited with his family.

The 12-year-old boy was caught up in a gambling debt believed to be about $4 million, police allege.

Thankfully today, the boy is back safe with his family after they were reunited at Grafton police station.

The boy was found safe in NSW. Picture: Queensland Police (9news)

About 8pm yesterday, his family had driven down to the northern NSW town from the Gold Coast shortly after receiving the news that he had been located about 250 kilometres from where he was allegedly abducted.

Police say he was found bound and tied to the headrest of a Jeep in South Grafton by local police responding to a tip-off by a member of the public who had seen media reports about the abduction.

The 12-year-old boy was caught up in a gambling debt believed to be about $4 million, police allege. Picture: 9NEWS (9news)

The Jeep had previously been seen in the outer Gold Coast suburb of Mudgeeraba from where he was snatched at 3.30pm on Friday.

Police will also allege that the 53-year-old man they believe responsible for the 24-hour ordeal, Zjun Je-ya Jung, had been making some demands of the boy's family for money in the lead up to the shocking incident.

Detective Inspector Marc Hogan from Gold Coast CIB said the boy had suffered "slight scratches consistent with being bound".

The family of the boy have now been reunited with him in Grafton. Picture: 9NEWS (9news)

He was taken to hospital as a precaution.

Queensland police intend to apply for extradition of the man tomorrow.

Detectives are looking for a dark blue Jeep Compass, with Queensland licence plates. Picture: Queensland Police (Supplied)

On his return to Queensland, police plan to charge him with kidnapping for ransom.

"It's the case that both the parties were known to each other and there were financial issues involved in the lead up to the abduction of the child," Det Insp Hogan said.

"We will allege that requests were made for money."

A map of where the boy was abducted and rescued. Map: 9NEWS (9NEWS)

He said the parties were known to each other and the motive may have involved "personal loans" between them.

"We're just so happy that the boy is healthy," he said.