Crime | Police find new method of credit card fraud

A new form of credit card fraud exploiting on contactless payment methods has been discovered by the Judiciary Police (PJ) in the course of their investigations, the authority announced yesterday.

At the special press conference, the local police pointed out that the new fraud type was found in a joint operation with the Hong Kong Police, codenamed “Soaring Star.”

The police found that the criminal syndicate would distribute stolen credit card data to its subordinates, usually recruited online, and ask them to link the data to contactless payment systems.

These subordinates would then be instructed to make purchases at retailers. The purchased merchandise would then be given to the senior members of the syndicate and transferred to Hong Kong or mainland China.

According to yesterday’s announcement, at least one syndicate was found abusing credit card data using this method. 

In September this year, one card issuer reported an abuse to the PJ involving 11 foreign credit cards and MOP150,000. These cards were used to purchase goods in the Northern District.

In the same month, another card issuer reported a case to the PJ, involving 829 foreign credit cards, which were used to make 913 transactions over two weeks, amounting to MOP11.95 million. These purchases were made at two retailers in Cotai.

Since the evidence displayed included a packing list issued by Apple, the company is believed to be a victim.

The card issuers reported a combined loss of MOP5.7 million.

This new form of fraud differs from the familiar method, which uses stolen credit card data to purchase products within online video games. This older method was also found in the recent operation.

Two of the suspects apprehended admitted that they were looking for part-time jobs when they were hired by the syndicate. They were given the credit card data and asked to link it with their Apple ID. They were then instructed to make purchases using that Apple ID in online video games.

The police were told that each purchase equated to MOP10 in remuneration for the suspect who made the purchase.

One suspect told the police that he used to play one of the online video games concerned, and wanted the money he spent on the game refunded, a request the game operator refused to honor.

He was then instructed by members of the syndicate to use the credit card data pairing method and make extensive series of purchases in different online games, so that it would trigger Apple’s systems to detect these transactions abnormal and process a refund.

This older method has affected at least six Macau credit cards, involving a total of MOP42,600.

Meanwhile, in Hong Kong, local police arrested five males and two females connected to the fraud.