Knoxville, TN – Authorities in Tennessee are warning residents about a sophisticated credit card scam dubbed “Ghost Tap,” which has resulted in the arrest of more than 10 suspects believed to be involved in a multi-state fraud operation.
According to the Knox County Sheriff’s Office Organized Retail Crime Unit, the suspects—reportedly Chinese nationals—were allegedly engaged in a scheme that exploits third-party digital wallet applications to commit large-scale credit card fraud. The investigation, ongoing since August 2024, has revealed that criminal groups are traveling from states like California, New York, and Texas to operate in jurisdictions where they believe enforcement may be less aware of the tactics.
Investigators say the operation involves loading stolen credit card information into digital wallets and using it to purchase gift cards, which are then resold online to launder the illicit funds. Law enforcement agencies estimate that financial institutions are losing millions of dollars each week due to this method.
The sheriff’s office is also raising concerns about text-based phishing schemes associated with the scam. Messages about unpaid tolls or misdelivered packages may be part of a “smishing” effort aimed at stealing personal and financial data. Residents are urged not to click on links or provide any information in response to such texts.
To avoid falling victim, the sheriff’s office advises:
- Never share personal or banking information via text or email with unknown sources.
- Be cautious of demands for payment via gift cards.
- Report suspicious messages immediately to authorities.
The Organized Retail Crime Unit uses advanced tracking tools to identify and intercept suspects as they cross into Knox County. Officials reaffirmed their commitment to protecting residents from financial crime.
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