They say money doesn’t grow on trees—but apparently it does grow on gift card racks at your local supermarket. And international scammers are harvesting fast.
In this publication, we're uncovering a global gift card fraud scheme that targeted everyday Americans, drained hundreds of thousands in stolen funds, and ended with foreign criminals being sentenced in U.S. federal court. Let’s dive right in.
Three Chinese nationals were sentenced for running a sophisticated gift card fraud ring—part of a broader scam preying on lonely hearts and innocent shoppers across the U.S.
How It Works:
This scam was anything but amateur. Here's how the multi-layered operation unfolded:
- Stolen Romance or Trust: Some victims were drawn in through fake online relationships. Once emotionally hooked, they were asked to send gift cards “to help.”
- Retail Gift Card Tampering: Others were unsuspecting consumers who bought tampered cards. Scammers carefully removed the protective strip from the back of the cards to steal codes, then resealed them so no one would notice.
- Fast Theft, Faster Spending: As soon as the card was activated at the register, scammers immediately drained the funds—usually on high-ticket electronics like Apple products.
- Profits Shipped Overseas: The electronics were stored in warehouses and then shipped to China or Hong Kong, where they were resold for massive profits.
All of this happened rapidly and under the radar, until federal agents unraveled the scheme as part of a months-long investigation.
Who’s Targeted:
- Elderly and Lonely Individuals: Common targets in online romance scams.
- Everyday Shoppers: Anyone buying gift cards in stores.
- High-traffic Retail Areas: Especially in New Hampshire, where no state sales tax made it extra appealing for criminal operations.
Real-Life Example:
In April 2025, three Chinese nationals—Naxin Wu, Mengying Jiang, and Mingdong Chen—were sentenced to federal prison for their roles in this gift card conspiracy. Jiang received the harshest sentence: 60 months.
Will Crogan, Special Agent in Charge at Homeland Security Investigations, said:
“New Hampshire’s tax-free environment makes it a magnet for both legitimate shoppers and organized fraud rings trying to stretch their profits.”
According to federal reports, the scheme is linked to hundreds of millions of dollars in illicit activity across multiple U.S. states.
Why You Should Care:
Gift card fraud isn’t just a retail inconvenience—it’s a gateway to major financial and emotional harm:
- You could lose hundreds of dollars instantly after activating a card.
- Victims of romance scams often suffer emotional trauma and are left ashamed or financially devastated.
- These crimes fund international fraud rings—not small-time crooks.
Even if it doesn’t happen to you directly, your community stores and neighbors could be the next targets.
How to Protect Yourself:
• Inspect Before You Buy
Check the back of every gift card. Look for signs of tampering—small tears, glue residue, or anything suspicious.
• Never Send Gift Cards to Strangers
No real friend or romantic partner you met online should be asking for payment via gift card.
• Register & Use Quickly
If your card allows registration or activation online, do it immediately. Then use the funds promptly to avoid theft.
• Warn Family & Friends
Educate loved ones, especially older adults, about the dangers of online romance scams.
• Report Suspicious Activity
If you think a card has been tampered with, report it to the retailer and the FTC at reportfraud.ftc.gov.
Quick Tips & Updates:
Quick Tip #1: Did you know romance scams cost Americans over $1.3 billion in 2023? And gift cards were the #1 payment method scammers requested.
Pro Tip: Gift cards should never be used for payments. If someone asks you to pay a bill, fine, or favor using a gift card—it’s a scam.
Update: Homeland Security is warning consumers that similar fraud rings are active in multiple U.S. states, often targeting large retail centers.
Stay safe, stay informed.
Keywords:
• Gift Card Scam – A fraud tactic involving tampering with or misusing gift cards to steal funds.
• Romance Scam – A scam where fraudsters build fake online relationships to extract money or valuables.
• Wire Fraud – A federal crime involving deception through electronic communications.
• Retail Fraud – Criminal activity that takes advantage of consumer retail transactions.
• Homeland Security Investigations (HSI) – A U.S. agency involved in uncovering and stopping large-scale fraud rings.
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