Chinese Fraud Syndicates Pilfer Billions From Banks and Retailers

WHO:

CNBC - Adam Parks, assistant special agent in charge with U.S. Homeland Security Investigations.

CNBC - Scott Glenn, vice president of asset protection at The Home Depot.

CNBC - Jeff Otto, chief marketing officer of Riskified.

WHAT:

CNBC - Chinese crime rings are stealing as much as $1 billion annually through organized retail crime.

CNBC - A man in a black Air Jordan T-shirt used stolen credit cards to purchase gift cards at a Lowe's in Louisiana.

CNBC - Fraudsters are using tap-to-pay methods to buy gift cards or merchandise, often starting with mass text messages designed to scare consumers into providing sensitive information.

WHERE:

CNBC - The fraud incident occurred at a Lowe's in Hammond, Louisiana.

CNBC - Other retailers were also targeted by the same fraudster in Louisiana and Tennessee.

WHEN:

CNBC - The fraud incident at Lowe's occurred last spring.

CNBC - Future events include ongoing investigations into fraud rings with ties to Chinese organized crime.

WHY:

CNBC - Retailers are targeted because their platforms carry sensitive information but lack the same level of security as banks.

CNBC - Crime groups use tap-to-pay fraud to convert stolen credit card information into high-value goods that can be resold in China.

HOW:

CNBC - Fraudsters add stolen credit cards to digital wallets and use them to purchase gift cards or merchandise.

CNBC - The fraud scheme often involves a network of criminals, with low-level operatives instructed on how to convert stolen credit card information into goods.

CNBC - Tap-to-pay fraud can include retail app fraud, where fraudsters steal credentials to access accounts and use stored credit card information.

(UPDATED July 17, 2026 22:22 UTC)

Chinese crime rings are reportedly stealing as much as $1 billion annually through organized retail crime, with a recent incident involving a man in a black Air Jordan T-shirt who used stolen credit cards to buy gift cards at a Lowe's in Hammond, Louisiana. Fraudsters are increasingly employing tap-to-pay methods and mass text messages to scare consumers into revealing sensitive information, targeting retailers that hold valuable data but lack robust security measures. Ongoing investigations are focused on these fraud rings, which often involve networks of criminals converting stolen credit card information into high-value goods for resale, particularly in China.