US Homeland Security launches Project Red Hook to combat $1bn "card-draining" scheme involving fraudulent gift card redemptions.

The US Department of Homeland Security launches Project Red Hook, a task force to combat the $1bn fraud scheme "card-draining". Criminals, including Chinese nationals and Americans, buy inactive gift cards, record redemption codes, and replace cards onto shelves for customers to activate, transferring balances into their own accounts. Customers are advised to inspect gift cards and report suspicious activity to 1-877-4-HSI-TIP.

May 11, 2024
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