The U.S. Department of Homeland Security (DHS) has revealed a large-scale money laundering operation by Chinese organized crime groups using American gift cards. These groups reportedly purchase high-value electronics in the U.S. with stolen gift cards, then ship the products to China for resale. The proceeds are converted into cryptocurrency and transferred via Chinese payment platforms. Over the past two years, this scheme has resulted in fraud losses exceeding $1 billion. The criminal networks are said to acquire stolen card numbers in bulk through platforms like WeChat, employing tactics such as SMS phishing and SIM card farms to facilitate their operations.
DHS Uncovers $1 Billion Gift Card Money Laundering Scheme by Chinese Crime Syndicates
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