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Tap-to-pay fraud fuels organized retail crime, police say

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Tap-to-pay fraud fuels organized retail crime, police say
Tap, pay and steal: Inside the Chinese fraud rings targeting retailers

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 

Jeff Otto, the chief marketing officer of Riskified.

CNBC

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“When the 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.

— Additional reporting by Paige Tortorelli

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Two US service members in Jordan killed in Iranian attack, US says

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(VIDEO) How to Watch Sunday’s 2026 Argentina vs Spain World Cup Final for Free: Livestream Options by Country

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Argentina's Lionel Messi celebrates after scoring against Bolivia in a World Cup qualifier on Thursday

Soccer fans around the world will have multiple free options to watch Sunday’s 2026 World Cup final between Argentina and Spain, with broadcasters across dozens of countries offering the match on free-to-air television or through free streaming platforms.

The final kicks off at 3 p.m. Eastern time, 8 p.m. British time, on Sunday, July 19, at MetLife Stadium in East Rutherford, New Jersey. The match marks Argentina’s bid to become the first nation in more than six decades to win consecutive World Cup titles, while Spain seeks its second championship following its lone previous title in 2010.

In the United States, the match will air in English on Fox, with a Spanish-language broadcast available on Telemundo. Viewers with a basic TV antenna, typically costing between $20 and $30, can pick up both channels for free in most metro areas, allowing access to the final, halftime show and trophy ceremony without any monthly subscription cost. For those who have cut the cord entirely, Fox is also available through live TV streaming services including YouTube TV, Fubo, Hulu + Live TV, DirecTV and Sling, most of which offer free trial periods for new subscribers. Fox’s own streaming platform, Fox One, is priced at $19.99 a month but offers a three-day free trial, enough to catch at least part of the tournament’s coverage. Telemundo’s Spanish-language broadcast can also be streamed through Peacock, which offers an ad-supported subscription for $11 a month.

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In the United Kingdom, the final will be available completely free through both the BBC and ITV. Cord-cutters can stream the match on BBC iPlayer or ITVX, with STV Player carrying the ITV feed specifically for viewers in Scotland. The BBC is additionally offering an ultra-high-definition stream through iPlayer, along with full radio commentary on BBC Radio 5 Live. Access requires only a valid UK television license and a UK-registered account.

Ireland will also carry the match free of charge, with RTE broadcasting the final with English-language commentary. Kickoff in Ireland falls at 8 p.m. local time, matching the UK broadcast window, and viewers can stream the match through the RTE Player app or website at no additional cost beyond a standard internet connection.

Australia will offer free coverage of the final through SBS On Demand, giving fans in the country access to the match without a cable or satellite subscription. In Canada, the World Cup final will be broadcast on CTV and streamed through Crave at no cost to viewers, with kickoff falling at 3 p.m. Eastern time, or 2 p.m. Central time, matching the U.S. broadcast window.

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A number of other countries have also secured free-to-air rights for the final. Brazilian fans can watch the match for free through CazéTV’s YouTube channel. In Belgium, the game will be shown on RTBF and VRT. The Netherlands will carry the match on NOS, while Switzerland has multiple free options available through SRF Play, RTS Play and RSI Play, reflecting the country’s multiple language regions. Turkish viewers can access the final through TRT’s free coverage.

For fans traveling outside their home country during the final, or those hoping to access a specific national broadcast unavailable in their current location, a virtual private network, or VPN, offers one potential workaround. VPN services allow users to route their internet connection through servers located in a different country, which can make it appear as though a device is browsing from that location, potentially unlocking access to a broadcaster’s streaming platform available only within that country’s borders. Providers such as NordVPN and ExpressVPN have marketed World Cup-specific promotions around the final, often including 30-day money-back guarantees. Using a VPN is legal in most countries, though accessing a streaming service from outside its intended broadcast region may violate that platform’s terms of service, and users should be aware of the specific policies of whichever streaming service they intend to access.

One option that will not provide a live stream of the final is FIFA’s own streaming platform, FIFA+, which offers highlights and archival content but does not carry live match coverage. Live broadcasts of the final are instead handled exclusively through each country’s officially licensed broadcaster, such as Fox and Telemundo in the United States or the BBC and ITV in the United Kingdom.

Beyond the match broadcast itself, Sunday’s final will feature an extensive pregame and halftime entertainment lineup. According to reporting from Billboard, singer Jennifer Hudson is scheduled to perform the U.S. national anthem ahead of kickoff, while Nicole Scherzinger, Laura Pausini and Robbie Williams are set to perform during the pre-match ceremony, with additional appearances expected from internet personality IShowSpeed and actor Tom Cruise. The tournament’s halftime show is expected to feature performances from Madonna, Shakira, Justin Bieber and BTS, marking one of the most star-studded entertainment lineups in World Cup history.

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Sunday’s championship match will be preceded by the tournament’s third-place playoff between France and England, scheduled to kick off at 5 p.m. Eastern time at Hard Rock Stadium in Miami, also airing on Fox and Telemundo in the United States.

For fans without access to any of the free broadcast options listed above, most major cable and satellite providers will carry Fox and Telemundo as part of standard programming packages in the United States, while international viewers are encouraged to check their own country’s officially licensed broadcaster for local availability, since rights holders and free-to-air arrangements vary significantly from country to country. With kickoff approaching Sunday afternoon, soccer fans across dozens of countries are expected to have some form of free or low-cost access to what promises to be one of the most closely watched World Cup finals in recent memory, pitting Lionel Messi’s push for a second consecutive title against Spain’s bid to add a second star above its crest.

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NYC Mayor Mamdani Says He May Still Order Netanyahu’s Arrest If He Visits New York Later This September

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New York City mayoral candidate Zohran Mamdani, seen here on the day of the Democratic primary June 24, 2025, has little experience but has energized followers with a leftist campaign

New York City Mayor Zohran Mamdani said this week that his administration is still weighing whether to order the arrest of Israeli Prime Minister Benjamin Netanyahu should he travel to the city for the United Nations General Assembly in September, reviving a controversial pledge Mamdani made during his mayoral campaign.

Speaking with Lulu Garcia-Navarro on The New York Times show “The Interview,” Mamdani said he continues to believe Netanyahu should face prosecution over Israel’s conduct in Gaza. “I believe that Prime Minister Netanyahu belongs in the Hague,” Mamdani said, referring to the seat of the International Criminal Court. “He’s a war criminal who has been charged by the International Criminal Court,” Mamdani added. “And what you will find is that is an opinion that is held by many, purely because of what his actions have wrought over these last many years.”

Mamdani acknowledged uncertainty over whether he possesses the legal authority to direct the New York Police Department, which falls under his oversight as mayor, to detain a sitting foreign head of state. He said his administration remains in “an active conversation” with the city’s Law Department to determine the scope of his authority on the matter. “Whatever the law allows me to do in New York City, that’s what we will do, but we won’t be writing our own laws to that end,” Mamdani said.

The comments echo a pledge Mamdani made during his mayoral campaign last year, when he told The Times he would direct the police department to arrest Netanyahu if given the opportunity, framing the move as an effort to honor an arrest warrant issued by the International Criminal Court over Netanyahu’s role in the war in Gaza. Mamdani and a United Nations commission have both characterized the conflict as a genocide, a designation Israel has strongly disputed.

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Netanyahu responded to Mamdani’s renewed comments during a recent appearance on a radio program hosted by Sid Rosenberg, a frequent critic of the mayor. Netanyahu said he was not concerned about the prospect of arrest and accused Mamdani of aligning himself with Hamas, the Palestinian militant group that controls significant portions of Gaza and carried out the October 7, 2023, attack in Israel that preceded the current war. “I think he should look at who he’s condemning, who he’s praising,” Netanyahu said. “He’s condemning Israel, the one democracy that stands shoulder to shoulder with American values.” Netanyahu went on to say, “Who does he champion? Hamas, that calls openly to massacre every Jew on earth, that conducted that horrible massacre, the worst massacre on Jews since the Holocaust.” He further claimed that Mamdani “doesn’t care” that “those who hate the Jews and Israel ultimately hate America,” adding, “And in fact I think secretly, he hates America.”

Mamdani has consistently condemned the October 7 attacks and does not speak favorably of Hamas when discussing his criticisms of Netanyahu, though he has made his concerns about Israel’s conduct in Gaza a central and recurring theme of his political identity. Associates who know him well have said he views Palestinian liberation as one of the defining moral issues of his generation.

Mamdani’s positions on Israel, once considered outside the Democratic Party’s mainstream, have gained broader traction within the party in recent months. Nearly half of House Democrats voted this week in favor of ending U.S. aid to Israel, a measure that ultimately failed to pass but signaled a notable shift in the party’s posture toward one of its longstanding allies in the Middle East. Asked about the political significance of the Gaza war, Mamdani said the issue has motivated voters nationally, including in recent House races in New York where candidates he endorsed won their elections. “It is hard to find a more bankrupt policy approach than what our country has done to Gaza and to Palestine,” he said.

The wide-ranging interview also touched on national politics, with Mamdani speaking positively about the possibility that Representative Alexandria Ocasio-Cortez of New York, a fellow member of the Democratic Socialists of America, could run for president in 2028. “I think she’d make a good anything,” Mamdani said.

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On immigration, Mamdani criticized the Trump administration’s enforcement approach while stressing that border security remains important to him. He said his administration is “willing to work with the federal government” in cases involving immigrants convicted of serious crimes, but drew a firm line against broader cooperation. “What we are unwilling to do is to participate in civil immigration enforcement with a federal government that has said openly it wants to deport a vast majority of people for crimes that we will never even know,” he said.

Mamdani also defended his police commissioner, Jessica Tisch, against criticism from some fellow democratic socialists, crediting her with helping to reduce crime in the city, even as some of his own supporters have raised concerns about the frequency of low-level arrests conducted under her leadership.

The mayor addressed the media attention surrounding his wife, artist Rama Duwaji, who has largely stayed out of the public eye during his time in office but has faced criticism over past social media activity, including liking a post that celebrated Hamas’s October 7 attack. “She is her own person,” Mamdani said. “She’s an incredible artist, and yet so much of how she engages with the world today is framed through her being my wife.”

Mamdani also reflected on how he defines economic struggle in a city with a high cost of living, an issue central to his political rise. Asked whether someone earning $250,000 annually could be considered working class, he said he had not set a specific income threshold, instead focusing on people’s ability to afford basic necessities. “What I would say is those who are working to try and afford the basic dignities of life and aren’t able to do so, I think that that is also working class,” he said. When pressed on whether that framing could group a janitor with a lawyer, Mamdani said he was less concerned with rigid definitions than with a broader question facing residents: “Is there any way for them to actually be able to work this hard and afford a good life in the city?”

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Reflecting on his rapid rise to national political prominence, Mamdani offered a candid assessment of the mindset required for the role. “I think there is some level of absurdity that you have to have as a part of yourself to believe that it should be you,” he said.

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