Inside the Chinese fraud rings stealing billions from banks and retailers

Chinese organized crime groups are earning up to $1 billion annually through tap-to-pay fraud schemes targeting retailers and banks, according to U.S. law enforcement. Instead of physically stealing merchandise, fraudsters use stolen credit card information to purchase gift cards at self-checkout kiosks, often coached in real-time by Southeast Asian scam compounds via wireless headphones. CNBC examined nearly a dozen cases across the U.S., including incidents at Lowe's and TJX Companies. The digital theft method is considered low-risk compared to traditional retail theft, as it is less visible and can be executed remotely. Homeland Security Investigations and local police note the complexity of these cases, which often fall below federal crime thresholds, making prosecution difficult. The schemes exploit retailers' weaker security compared to banks, with stolen gift cards resold or used to buy high-value goods for shipment to China.