- The chair Payment Card Data Fuel for Ghost, Tapping Fraud All over the World
- Burner phones transform identity theft into organized retail fraud
- Luxury items purchased with Ghost Tapping, are quickly resold online
Digital payment services have long promised speed and ease, but the same systems are increasingly manipulated for fraud.
Recorded Future’s Insikt Group scientists are now warning a new wave of fraud known as “ghost-tapping”, has spread quickly across Southeast Asia and further since 2020.
The method allows scammers to load stolen payment information on burner phones, which are then used for retail fraud.
How ghost-tapping works
Ghost-tapping is dependent on stolen debit card data, often collected through phishing, social engineering or mobile malware.
Once the information is taken, bypass’s criminal security by capturing disposable passwords sent to victims, and then upload the stolen data to mobile wallets linked to contactless services, such as Apple Pay or Google Pay.
Syndicates can use burner phones to make purchases in stores or even withdraw money from ATMs.
The process shows parallels with identity theft where personal and financial data is utilized for profits.
Recorded Future’s Insikt Group says it has observed organized groups that distribute not only phones but also software that can forward card information across devices.
This enables a network of mules that present themselves as ordinary shoppers or tourists who buy high value goods, such as jewelry or mobile phones, which are later resold through underground telegram channels.
Following a security clamp on telegram channels, Syndicates moved operations to alternatives such as Xinbi Warranty and Tudou Guarantee, which continues to facilitate ghost-tapping agreements.
According to the researchers, the high volume of ads and mule recruitment on these platforms suggests that many items circulating in these markets come from ghost tapping.
This campaign is sustained, and even after several arrests of Chinese and Taiwanese nationals of Singapore by 2024, the decentralized nature of telegram -based trade disruption is difficult.
Ghost-Tapping has major consequences for retailers, banks and payment providers.
Because many stores lack strict knowledge-your customers’ control, fraud is difficult to spot at the point of sale.
Insurers are also exposed to the fall of unauthorized transactions.
In Singapore alone, the police only recorded hundreds of events with Phished Map Data tied to mobile wallets, which led to millions in loss.
The United Nations Office of Drugs and Crime has described ghost tapping as part of a greater professionalization of fraud in the region.
“The convergence between acceleration and professionalization of these operations on the one hand and their geographical expansion to new parts of the region and on the other translates into a new intensity in the industry – one that the governments must be prepared to respond to,” said Benedikt Hofmann, Udc -functioning regional representative of Southeast Asia and Pacific, said at that time.
How to remain safe
- Implement Multi-Factor Authorization to strengthen protection against unauthorized use of payment information.
- Rely on reputable security suites and properly configured firewalls to mitigate phishing and malware threats before data is stolen.
- Maintain vigilance when you enter financial details online to avoid postponing sensitive information to fake places.
