Chinese organized crime networks are increasingly using digital payment fraud to steal billions of dollars from U.S. banks and retailers, according to law enforcement officials interviewed by CNBC.
The report said fraudsters use stolen credit card information loaded into digital wallets to purchase gift cards and high-value products at self-checkout counters, often while receiving real-time instructions from overseas scam operations.
The report said phishing messages, stolen login credentials and compromised retail accounts allow criminals to bypass traditional fraud checks. Gift cards are later converted into products such as iPhones that are shipped overseas for resale.
Federal investigators have made hundreds of arrests under Project Red Hook, while lawmakers are considering the Combating Organized Retail Crime Act to improve information sharing and strengthen efforts against organized retail fraud.
Related Tweet:
Inside the Chinese fraud rings stealing billions from banks and retailers https://t.co/aAQn6vtdwa
— CNBC (@CNBC) July 17, 2026
Also Read:
TIPP Staff
