US authorities say organizations based in China have been stealing recharged gift cards from American consumers, purchasing high-value goods in the US and then shipping them to China for resale, profiting from the price difference and thereby facilitating the transfer and laundering of funds.
Bloomberg reported on Saturday (October 18) citing US Homeland Security Investigations officials that recent law enforcement actions have revealed that Chinese organized crime groups have set up a sophisticated money laundering network, exploiting US retailers, mobile payment platforms, and cryptocurrencies to transfer illegal funds.
According to reports, criminals based in China purchase batches of stolen gift card numbers via the WeChat platform, pay with cryptocurrency, and load the value of the cards into mobile wallets. Teams on the US side then use these mobile wallets to buy high-demand electronics such as iPhones and laptops, transport them to China via bilateral trade flows, and resell them at two to three times their original price to pocket the profit.
US authorities state that over the past two years, these groups have caused more than US$1 billion (about S$1.3 billion) in fraud losses to American consumers.
Investigators indicated that these organizations also operate large-scale SMS scams, impersonating highway toll, postal fee, or courier notifications, directing consumers to fake payment pages to input card information. This data and the associated funds are then stolen.
Reportedly, Chinese criminals monitor these fake payment sites in real time, load victims’ gift card information into mobile wallets, and then use their controlled phones to make purchases in the US.
Bloomberg reported on Saturday (October 18) citing US Homeland Security Investigations officials that recent law enforcement actions have revealed that Chinese organized crime groups have set up a sophisticated money laundering network, exploiting US retailers, mobile payment platforms, and cryptocurrencies to transfer illegal funds.
According to reports, criminals based in China purchase batches of stolen gift card numbers via the WeChat platform, pay with cryptocurrency, and load the value of the cards into mobile wallets. Teams on the US side then use these mobile wallets to buy high-demand electronics such as iPhones and laptops, transport them to China via bilateral trade flows, and resell them at two to three times their original price to pocket the profit.
US authorities state that over the past two years, these groups have caused more than US$1 billion (about S$1.3 billion) in fraud losses to American consumers.
Investigators indicated that these organizations also operate large-scale SMS scams, impersonating highway toll, postal fee, or courier notifications, directing consumers to fake payment pages to input card information. This data and the associated funds are then stolen.
Reportedly, Chinese criminals monitor these fake payment sites in real time, load victims’ gift card information into mobile wallets, and then use their controlled phones to make purchases in the US.