When a man in a black Air Jordan T-shirt walked up to a self-checkout kiosk at a Louisiana Lowe’s last spring, he looked like any other customer.
Over the course of about seven minutes, he methodically rang up different gift cards for $95 each, using his phone to tap-to-pay for each card as a red-vested associate circled nearby, surveillance video showed.
Unknown to the employee, the man was part of a sprawling Chinese crime ring, using stolen credit cards to buy the gift cards while a Southeast Asian scam compound coached him through each transaction through the wireless headphones in his ears, police say.
“We know that there are hundreds of individuals at any one time doing this across the country,” said Adam Parks, an assistant special agent in charge with U.S. Homeland Security Investigations, who investigated the case. “Even though you think that’s $95 every transaction, that adds up to a lot of money.”
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A suspect that police said is connected to a Chinese organized crime ring using stolen credit cards to purchae gift cards at a Lowe’s in Hammond, Louisiana.
HSI
After the man left the hardware store, he purchased more gift cards with stolen credit card information at other retailers only to return to the original Lowe’s the same day to repeat the act, Parks said. He was not arrested and is still a suspect, he added. Lowe’s didn’t respond to repeated requests for comment from CNBC.
While credit card theft and fraud isn’t new, with the proliferation of tap-to-pay and growing use of retail apps, these digital thefts are shaping the next wave of organized retail crime and earning Chinese gangs as much as $1 billion annually, police said. Unlike typical retail theft operations — where criminals clear out shelves in big box stores and resell merchandise piece by piece on online marketplaces — the crimes can be carried out right under a store employee’s nose or from a computer anywhere in the world.
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“It’s very low risk for the bad actors,” said Scott Glenn, vice president of asset protection at The Home Depot. “It’s not the same thing as walking into a Home Depot, filling up a cart full of power tools, and then walking out. It’s just not as visible, it’s not as obvious to what’s happening out there and so it’s become a more preferred method over the last several years.”
Fraudsters have selected retailers as their targets because their platforms carry sensitive information such as stored credit cards and personal data but they do not have the same level of security as banks, according to industry experts and law enforcement.
A man police say participated in a tap-to-pay fraud scheme at a Target store self-
checkout in Tennessee
Source: Knox County Sheriff’s Office
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There’s no firm data on how much retailers are losing from digital forms of retail crime, but CNBC found around a dozen criminal cases across the country affecting a wide variety of retailers that police said involve a combination of organized groups and low-level fraudsters.
The cases are complex and often hard for local authorities to handle, said Capt. Matt Lawson of the Knox County Sheriff’s Office in Tennessee, who said he’s been investigating a fraud ring with ties to Chinese organized crime.
Unless the theft hits a certain dollar threshold or rises to the level of a federal crime, “it’s kind of like they get away with it almost,” he said.
Unpaid toll bills and pending criminal judgments
Tap-to-pay fraud, which involves a fraudster adding a stolen credit card to their digital wallet and using it to buy gift cards or merchandise,often starts with a familiar text message and can end with an unwitting consumer’s identity up for sale on platforms such as Telegram.
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Fraudsters send out mass text messages warning about unpaid tolls, expiring car registrations or pending arrests that are designed to scare consumers into providing their credit card information, email credentials or other sensitive data. AI has only made the schemes easier, as crime groups can scale the scams more quickly and make the messages appear more legitimate, experts said.
“Once a fraudster has a person’s email password and credit card, they can load that credit card into a device that they control,”said Jeff Otto, the chief marketing officer of Riskified, a tech company that works with retailers including Macy’s, Peloton and Prada to fight fraud.
Jeff Otto, the chief marketing officer of Riskified.
CNBC
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“Whenthe bank reaches out to say, ‘Hey, is that you loading the card?’ They’ve already got access to the victim’s email” and can often check it for a one-time passcode before the consumer notices, he said.
Low-level opportunists engaging in tap-to-pay schemes can operate independently, using the practice to either buy merchandise or purchase gift cards and resell them at a discount for cash.
But on the Chinese organized crime level, the practice involves an entire criminal network, Parks said. In order to get profits back to China, crime groups use tap-to-pay fraud to buy gift cards and then use those gift cards to purchase high-value goods that can be resold at a premium in China, such as iPhones with American settings, Parks said. The practice allows gangs to skirt strict banking laws both in the U.S. and China and convert higher amounts of cash into the legitimate economy.
At the heart of the strategy are foot soldiers such as the customer at Lowe’s who police say helped carry out the fraud, which in the years since the Covid-19 pandemic has ramped up along with a surge of Chinese nationals at U.S. land crossings, Parks said.
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People looking to enter the country illegally often rely on smugglers and organized crime networks, and they then owe a debt that crime groups require them to pay off once they’re in the U.S.
“So [they’re] going to instruct you on how to go into a store, convert the stolen credit card information into acquiring goods and then now you’re going to ship those goods back to China,” Parks said. “That’s where a lot of times we get our arrests, but that is the lowest level of the organization.”
Adam Parks, an assistant special agent in charge with U.S. Homeland Security
Investigations.
CNBC
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Tap-to-pay schemes also can include retail app fraud, which involves stealing someone’s credentials, logging into their account and using stored credit card information to purchase merchandise or gift cards.
Riskified’s Otto showed CNBC how data breaches, phishing and social engineering, which involves piecing together publicly available information about someone to steal their identity, can give fraudsters access to a consumer’s retail account.
CNBC saw that login credentials for Walmart‘s app and website were being sold on various Telegram channels for between $1.50 and $2.50 with information about how long the accounts had been active.
“They have Yahoo addresses that are 10 years old, Gmails that are 10 years old,” Otto said. “These are older accounts that often get past some of the more rudimentary fraud checks [because] we tend to trust accounts that have been with us for a long time. And in this case, these can be sold.”
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Telegram didn’t return a request for comment.
Compounding the issue is the fact that retail apps and websites don’t always have the same level of security as platforms like banking apps, Otto said. On their face, retail apps are for shopping, places for consumers to buy clothes, household necessities or makeup.
But they also contain stored credit cards, sensitive personal information and sometimes, access to a consumer’s store-branded credit card. For example, Macy’s customers can shop on its app and use the same platform to pay their Macy’s credit card bill.
“It has a lot to do with the fact that they are focused on convenience and they’re focused on conversion, generating the maximum amount of online revenue, and because of that, they do not use bank-grade security,” Otto said. “They don’t want to add additional friction.”
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In a statement to CNBC, Walmart said “customer privacy and safety is a top priority.”
“While we won’t disclose specific security measures, Walmart has systems in place to help detect bad actors, prevent, and respond to unauthorized account access and is continuously enhancing these protections,” the company said. “In addition, full payment card information is not stored in an unprotected form.”
Using anime to disguise fraud
In a review of tap-to-pay cases across the country, CNBC found a mix of low-level opportunists and organized crime rings.
In January,Dancliff Labady was arrested in Miami and accused of stealing nearly $95,000 primarily using TJX Companies’ store-branded credit cards for TJ Maxx, Marshall’s and Home Goods, according to a police report. Police allege he obtained access to about 15 different customer accounts by calling Synchrony Bank, the card issuer, and adding a phone number he controlled to the accounts. It’s unclear what customer information Labady needed to provide to Synchrony to make the account changes.
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Once Labady added his number to the accounts, he was able to add the cards to his digital wallet and conduct dozens of transactions at TJX stores across the Miami area over the holiday shopping season without having a physical card, police said. He was arrested after TJX’s asset protection team reported the suspicious activity to Synchrony Bank.
Labady has pleaded not guilty and his attorney declined to comment. A spokesperson for Synchrony said it doesn’t comment on ongoing investigations and is “cooperating fully with law enforcement.”
In a statement, a TJX spokesperson said “protecting our customers’ personal information and our technology systems is very important to us.”
“We have measures in place across our systems and stores designed to identify and address potential fraudulent account activity,” the spokesperson said. “We would also encourage our customers to maintain strong online account security practices, including not re-using passwords across websites or apps, and to report any suspected fraudulent activity to their bank or credit card company immediately.”
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There have been broader efforts to root out the fraud schemes, as well.
Since spring 2025, the Knox County Sheriff’s Office arrested more than a dozen suspects with alleged ties to Chinese organized crime who officials said were traveling across the country and using stolen credit card information to purchase gift cards and launder money.
In a review of cell phones seized in connection with the cases, investigators found the suspects were using special apps that contained the stolen credit card information but disguised them as games to evade detection.
“They look like anime games. They kind of look like Pokemon characters,” said Lawson, who’s been investigating the fraud ring. “We would just kind of start tapping on them … and we would find the ones that were the actual tap-to-pay apps.”
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On a national level, Homeland Security Investigations’ Project Red Hook targets gift card fraud and other forms of digital retail crime. So far, it has led to at least 239 arrests since January 2024 and is targeting some of the largest Chinese organized crime groups operating in the U.S., HSI said.
For several years, the retail industry and law enforcement organizations have been lobbying Congress to pass the Combating Organized Retail Crime Act, which they say would increase information sharing and make these types of complex cases easier to tackle. It passed the House in May and was recently included as part of an amendment to the National Defense Authorization Act in the Senate. It’s expected to be voted on before the end of the year.
Lawson said he’d like to see better sharing of information.
“Law enforcement sometimes likes to hold information and not share everything and kind of compartmentalize it … even the retailers are guilty of this.”
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“The more information that we get out when we notice these people are breaking these laws” the easier it will be to catch them, he said.
The NatWest Growth Tracker Business Activity Index pegs the region as one of the best performers in the UK
A view of Newcastle(Image: Simon Greener/Newcastle Chronicle)
A survey that tracks the health of the region’s private sector companies has remained in growth despite a fallback in activity in June.
The NatWest North East Growth Tracker Business Activity Index, which measures month-on-month changes in the region’s manufacturing and service sectors, declined to 50.8 in June, having stood at 53.8 in May. Scores above 50 denote a growing economy.
The North East outperformed the UK as a whole, however, where activity fell in June. Among the 12 monitored UK regions and nations, only London and the South East recorded better trends for activity.
Within the survey, business confidence strengthened in the North East in June, with optimism regarding output over the coming year rising to a three-month high. Cost pressures receded, according to businesses responding to the survey, while the rate of input price inflation eased to its lowest since February.
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But there were concerns at job losses, which came at the steepest levels since November last year and were sharper than the UK average.
Malcolm Buchanan, chair of the NatWest North regional board, said: “The North East saw growth momentum falter as the first half of 2026 drew to a close, according to the latest NatWest Growth Tracker. New business placed with private sector firms increased for the seventh month running, but the rate of growth slowed to a fractional pace that was the weakest over this period and contributed to a much slower rise in overall business activity.
“Nonetheless, the region remained one of only three monitored UK areas to record growth in June, alongside London and the South East. This relative resilience helped support confidence among private sector firms, with optimism about the year ahead rising to a three-month high.
“Companies also reported a further easing in cost pressures at the end of the second quarter. The rate of input cost inflation fell to its lowest since February, though it remained high by historical standards. Firms continued to raise their own charges at a marked, albeit softer, pace as they sought to protect margins from elevated cost burdens.
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“At the same time, businesses moved to protect cashflow by controlling expenditure elsewhere. Employment fell at the sharpest pace since November last year, underlining the pressure firms continue to face even as demand remains in positive territory.”
The release of the growth tracker has come ahead of some key economic data showing the state of the regional economy. Unemployment and labour market data will be published next Tuesday, including regional data, followed by national inflation data the next day.
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Wall Street opened in deep red on Friday as a global semiconductor selloff intensified on concerns over elevated AI spending and stretched valuations. Technology stocks remained under pressure as semiconductor shares across global markets traded lower. Meanwhile, tensions in the Middle East remained elevated as concerns over a fresh crude oil supply crunch persisted.
The economic calendar is relatively lighter next week with earnings in full swing. The only major data scheduled are initial jobless claims on Thursday and S&P Global PMI data for July on Friday.
Alphabet (GOOG) (GOOGL), Tesla (TSLA), and Intel (INTC) are among the major firms reporting their results next week. _______________________________________________________________
Volatility watch: Sandisk (SNDK) and Western Digital (WDC) have seen options volatility increase over the last week. The most overbought stocks per their 14-day relative strength index include Crinetics Pharma (CRNX), AstroNova (ALOT), and CareDx (CDNA). The most oversold stocks per their 14-day Relative Strength Index include Standard Lithium (SLI) and Rithm Property Trust (RPT).
Dividend watch: Companies that have an ex-dividend date coming next week include Caterpillar (CAT), Colgate-Palmolive (CL), Dell Technologies (DELL), and Pfizer (PFE).
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Kevin Durant’s standing with the Houston Rockets continues to generate speculation across the NBA this offseason, with fresh reporting suggesting the two-time champion could once again find himself at the center of trade rumors just one year after Houston acquired him in a blockbuster deal with the Phoenix Suns.
Durant, who turns 38 in September, joined the Rockets last summer with expectations that he would help push Houston into championship contention. Instead, the team’s first season with Durant ended in disappointment, with the Rockets eliminated by the Los Angeles Lakers in six games during the first round of the 2026 playoffs. Durant appeared in just one game of that series, while Houston’s Luka Doncic missed the entire matchup and Austin Reaves was sidelined for most of it because of injury. Even shorthanded, LeBron James helped Los Angeles build a 3-0 series lead before Houston managed to extend the matchup to six games.
According to ClutchPoints NBA insider Brett Siegel, the Rockets never viewed the Durant acquisition as a guaranteed long-term commitment, despite the scale of the trade that brought him to Houston. Siegel reported that many around the league remain skeptical the Rockets will keep Durant through the remainder of his current contract, which runs through the 2027-28 season. Houston, according to Siegel’s reporting, viewed the move primarily as a way to upgrade from Jalen Green and bridge gaps in the roster as the team pushed to contend in a crowded Western Conference, rather than as a foundational piece for a multi-year rebuild.
Adding to the uncertainty surrounding Houston’s roster this offseason, veteran forward Josh Okogie is departing the Rockets in free agency to sign with the Utah Jazz, according to ESPN’s Shams Charania. While Okogie’s departure is unrelated directly to Durant’s situation, it adds to a broader sense of roster turnover surrounding the team as it enters the 2026-27 season.
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Much of the speculation around Durant’s future has centered on the Detroit Pistons, driven in part by reporting that Durant has expressed a desire to play alongside Pistons guard Cade Cunningham. Siegel has reported that Durant has spoken highly of Cunningham dating back to the guard’s early years in the league, having publicly called him a “special talent” on multiple occasions. Separate reporting has indicated Durant may be willing to leave Houston specifically to team up with Cunningham, who recently signed a max rookie extension reportedly worth $269 million and has emerged as Detroit’s franchise cornerstone. A photo Durant posted on social media earlier this month showing himself wearing a Detroit-branded hat further fueled speculation about his interest in the Pistons, even as such gestures remain open to interpretation.
Beyond Detroit, several other franchises have been mentioned in connection with Durant’s name throughout the summer. The Minnesota Timberwolves have been consistently linked to Durant, with the team already having made one major offseason move by acquiring guard LaMelo Ball from the Charlotte Hornets. A hypothetical trio of Anthony Edwards, Ball and Durant has been floated by analysts as a potentially unguardable combination, though any deal sending Durant to Minnesota would likely need to include center Rudy Gobert, the four-time NBA Defensive Player of the Year, given the assets Houston would presumably seek in return.
The Boston Celtics have also emerged in trade speculation following the team’s own significant roster shakeup this offseason, which saw Boston trade Jaylen Brown to the Philadelphia 76ers in exchange for Paul George and multiple draft picks. Sports Illustrated’s Chris Mannix suggested Celtics president Brad Stevens could look to use those newly acquired picks as trade capital to pursue a star player such as Durant, writing that Boston’s picks carry real value even amid uncertainty about how they will ultimately be used. “The Celtics can spin that the pair of first rounders they picked up have value. And they do,” Mannix wrote. “The 2028 one will likely end up as the Clippers’, who are beginning a rebuild with an Aspiration-sized anvil over their head.”
The Washington Wizards have also been mentioned as a potential landing spot, with reporting indicating the franchise held interest in trading for Durant as far back as April, though no formal talks have been confirmed. Meanwhile, the Miami Heat’s chances of landing Durant have been characterized by some reporting as unlikely, with one recent Sporting News piece describing the Heat’s odds as “as bad as you’d imagine.”
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Not everyone in league circles believes a trade is imminent. Some analysts have noted that Rockets general manager Rafael Stone has given no public indication the team is actively shopping Durant, and Durant himself has previously said he hoped to finish his career in Houston following last summer’s trade from Phoenix. That stated preference adds a layer of uncertainty to how seriously any of the reported interest from other teams might translate into an actual move before the start of the 2026-27 season.
Durant’s history with trade requests also looms over the current speculation. Over the course of his career, Durant has requested trades on multiple occasions, most notably during his final seasons with both the Brooklyn Nets and the Phoenix Suns, each of which ultimately resulted in him being moved to a new team. That pattern has left some around the league watching closely for any sign that his relationship with the Rockets could follow a similar trajectory, particularly given the disappointment of Houston’s first-round playoff exit and the reported skepticism among rival executives about whether the partnership will last through the length of his current contract.
For now, no formal trade request has been reported, and the Rockets have not confirmed any active effort to move Durant on the open market. But with reporting linking him to Detroit, Minnesota, Boston and Washington, and with questions persisting about how committed Houston is to building around him long-term, Durant’s situation appears likely to remain one of the NBA’s most closely watched storylines as training camps approach later this year.
HDFC Mutual Fund held top positions in ICICI Bank, HDFC Bank, Axis Bank, RIL and Eternal in June. Check the fund house’s top 10 stock holdings and portfolio changes.
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