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Arrests in Tap-to-Pay Scheme Powered by Phishing
- Chinese nationals were arrested in a tap-to-pay fraud scheme using mobile wallets created through online phishing scams in the U.S.
- In Knoxville, Tennessee, 11 Chinese nationals were arrested for buying gift cards with mobile wallets, considering it the first tap-to-pay fraud arrests in the nation.
- The fraudsters traveled nationwide using stolen credit card information to purchase gift cards, laundering funds from state to state.
- The scheme involves utilizing Android phones to conduct Apple Pay transactions with stolen or compromised card information.
- Phishing messages were sent through Apple iMessage and Google RCS, obtaining payment card data through fraudulent methods.
- Fraudsters link stolen card data to new mobile wallets from Apple or Google after victims provide one-time passcodes.
- A Chinese phishing group sells an Android app called 'Z-NFC' that can relay valid NFC transactions worldwide, offering 24-hour support.
- These groups sell phones loaded with multiple stolen wallets using the app, facilitating fraudulent transactions like tap-to-pay.
- Two Chinese nationals in California were arrested for using an app to run stolen credit cards at a Target store, making off with $1,400 worth of gift cards.
- Phishing sites of China-based groups are manned by fraudsters using Apple and Google phones to send spam and respond in real time, powered by human operators.
- Banks' improved fraud detection and pre-flagging of cards may lead to declined transactions in such schemes, indicating potential progress in combating fraud.
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