Chinese Fraud Rings Use Tap-To-Pay Schemes To Target Retailers

According to CNBC, Chinese organized crime groups and lower-level fraudsters are using tap-to-pay schemes, stolen credit cards and retail app accounts to buy gift cards and merchandise from U.S. retailers, including Lowe's, TJX Companies stores and Walmart, with police and industry experts saying the activity can be carried out with limited risk and has become a preferred method in recent years. The article said a suspect at a Lowe's in Louisiana used stolen credit card information to buy $95 gift cards before returning the same day to repeat the scheme, while a man in Miami was accused in January of stealing nearly $95,000 with store-branded cards from TJ Maxx, Marshall's and Home Goods. Homeland Security Investigations' Project Red Hook has led to at least 239 arrests since January 2024, and the retail crime bill passed the House in May and was recently added as a Senate amendment to the National Defense Authorization Act.