Chinese crime groups steal U.S. gift card data to launder over $1 billion via electronics resales and crypto.

Chinese organized crime groups are using stolen U.S. gift card data to launder millions in illicit funds, according to Homeland Security Investigations. The scheme involves purchasing high-value electronics with compromised cards, shipping them to China for resale, and converting proceeds into digital currency via Chinese payment platforms. Criminals use cryptocurrency, fake websites, and text message scams to steal card information, with operations spanning multiple states and linked to networks involving Chinese nationals. Over $1 billion in losses have been tied to the fraud in two years, with federal agents dismantling major hubs and arresting suspects across California, New Hampshire, Florida, and New York. The crime exploits normal retail behavior, making detection difficult.