“

In recent news, authorities from Tennessee and California have arrested Chinese nationals involved in a unique form of tap-to-pay fraud utilizing mobile devices. These scammers were reportedly using mobile wallets created through online phishing scams combined with a custom Android app to carry out transactions remotely from China. Let’s dive into the details of this evolving crime trend:

### Arrests in Tennessee:
– Knoxville, Tennessee authorities apprehended 11 Chinese nationals responsible for buying thousands of dollars worth of gift cards at local retailers using mobile wallets obtained through phishing scams. This case marks the first of its kind for tap-to-pay fraud.
– The fraudsters were not just buying gift cards outright; instead, they were engaging in multiple transactions at various locations across different states, essentially laundering the proceeds.
– The crime ring has been operating nationwide, utilizing stolen credit card information to purchase gift cards worth over $23,000, all funded by unsuspecting victims’ data.

### Mechanics of the Scam:
– The scammers employed Android phones to conduct Apple Pay transactions with stolen credit/debit card information, a rare occurrence that hints at a sophisticated operation.
– Security expert Ford Merrill highlighted the involvement of a custom Android app known as “Z-NFC” that allows valid NFC transactions globally, by waving the phone at compatible terminals.

### Phishing Operations:
– The fraud begins with phishing messages mimicking trusted services like the U.S. Postal Service or local authorities, requesting payment card details under the guise of fees or fines.
– The compromised data is then used to link the victim’s payment card to a mobile wallet (Apple or Google) controlled by the fraudsters, who load multiple stolen wallets onto a single device for resale.
– The scammers employ messaging services like Apple iMessage and RCS on Google phones to facilitate their phishing activities with minimal traceability.

### Arrests in California:
– In a separate incident, two Chinese nationals in California were caught using an app to make fraudulent transactions at a Target store, cycling through multiple stolen credit cards to buy gift cards.
– Despite many declined transactions, the suspects managed to secure $1,400 worth of gift cards, revealing the lucrative potential of these criminal operations.

### Risks and Challenges:
– While some transactions failed due to improved bank fraud detection, the overall success rate demonstrates the ongoing threat posed by these sophisticated fraud networks.
– The manual nature of these scams, involving human operators monitoring and responding to phishing messages in real-time, suggests a coordinated effort behind these criminal activities.

### Prevention and Awareness:
– It’s essential for individuals to remain vigilant against phishing attempts and safeguard their payment card details to prevent falling victim to these elaborate scams.
– Public awareness campaigns and enhanced security measures by financial institutions can help combat the rising tide of mobile wallet fraud orchestrated by international crime rings.

In conclusion, the recent arrests of Chinese nationals in Tennessee and California shed light on the alarming trend of tap-to-pay fraud using mobile devices, emphasizing the need for greater vigilance and robust cybersecurity measures to safeguard personal information and financial assets from sophisticated phishing operations. Stay informed, stay protected!