Gift Card Gangs From China Operating Inside The United States – 2024
Gift Card Gangs From China Operating Inside The United States
How Organized Crime Gangs from China are Operating inside the U.S.
Authors:
• Craig Silverman and Peter Elkind, ProPublica
• SCARS Editorial Team – Society of Citizens Against Relationship Scams Inc.
About This Article
Federal authorities are investigating the involvement of Chinese organized crime rings in gift card fraud schemes targeting American consumers, launching a task force named “Project Red Hook” to combat this growing threat. The initiative focuses on preventing “card draining,” where thieves exploit stolen or altered card numbers to siphon money before legitimate owners can use them.
Over the past 18 months, law enforcement has arrested about 100 individuals for card draining, with the majority being Chinese nationals or Chinese Americans. The schemes, estimated to have stolen hundreds of millions of dollars, highlight the need for industry collaboration and heightened security measures.
