Reported by James Reddick

(Excerpt shared below. To read full report, go to: https://therecord.media/scammers-ghost-tapping-retail-fraud-launder-cash)

Chinese organized criminal groups in Southeast Asia are increasingly using stolen payment card information and retail fraud to launder their illicit proceeds.   

The technique demonstrates the sophisticated level of coordination among criminal actors as they attempt to move money derived from the massive scamming operations in the region.  

In a report released Thursday, researchers at Recorded Future’s Insikt Group detailed what they call “ghost-tapping” — when stolen payment card details are uploaded onto a burner phone and used in-person to purchase goods. (The Record is an independent editorial unit of Recorded Future.)   

Using social engineering, phishing and mobile malware, cybercriminals steal the card information and — by intercepting a one-time password intended for the victim — upload it to a device in their control. The researchers also found evidence of software that allows them to relay the card details to separate mobile devices.  

These phones are then offered up for sale on Telegram channels, where they are purchased by criminal syndicates.