China Gangs Exploit US Gift Cards to Move Stolen Cash, DHS Says

Gift cards, one of the most basic financial products in the US retail market, have become the backbone of a billion-dollar criminal economy that investigators say is moving American money into China.

Homeland Security Investigations agents say Chinese organized-crime groups have built a laundering network that uses US retailers, mobile wallets and cryptocurrency to steal and export wealth. Operatives inside the US drain compromised gift cards, buy high-value goods such as iPhones and laptops, and ship them to China, where they are resold for profit.

Gift cards stolen in Ventura County, California.

Source: Ventura County Sheriff

The proceeds are then converted into digital currency and funneled through Chinese payment platforms, ...