The United States (US) federal investigators have started to raise the alarm over a surging money-laundering network run by China-linked organised crime groups that exploits U.S. retail gift cards and mobile payment systems to move stolen cash from U.S. into their country.
According to the Department of Homeland Security (DHS)’s investigative branch, these groups diverted more than $1 billion in recent years by converting fraudulent credit-card and bank information into gift cards or high-value consumer goods, which are then shipped to china or turned into digital currency overseas.
The operations begin with phishing or scam text messages sent to U.S. residents—typically claiming tolls, postal fees or traffic violations—with victims tricked into revealing payment data and one-time password codes.
That information is then used to load funds into mobile wallets, purchase gift cards, laptops, or smartphones, and funnel value into China.
Agents cite “SIM farms” in the U.S.—large arrays of active SIM cards used to send fake texts—and networks of domestic “mules” who buy goods or gift cards on behalf of the gangs.
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The fintech-friendly nature of gift cards, combined with the ease of converting goods into liquid value and the international mobility of digital currency, has made this form of laundering increasingly attractive to transnational criminal groups. U.S. law-enforcement agencies say they are coordinating with retailers, payments companies and international counterparts to identify and shut down the most vulnerable channels.
The investigators are emphasising that gift cards are marketed as innocuous and convenient gifts, and their open-ended nature—particularly large retail gift cards and “reloadable” variants—makes them vulnerable to misuse.
In essence, the U.S. consumers are warned to protect their financial details, be sceptical of unsolicited texts and avoid sharing one-time codes or payment information in response to unexpected messages.
