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https://www.wcvb.com/article/author...1-million-in-walmart-gift-card-scam/29800649#
A Chinese national student was arrested in Arkansas for his suspected involvement in a nationwide, multimillion-dollar Walmart gift card scam.
Walmart global investigators contacted the Benton County Sheriff's Office on Nov. 4 about an ongoing theft investigation involving a variety of phone and internet scams, KFSM-TV reported.
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Walmart's investigators had been tracking 23-year-old Songhua Liu as a person of interest as he traveled through Arkansas.
It was believed Liu was involved in a scam designed to convince, coerce, trick, or otherwise prompt victims to buy Walmart gift cards.
Once gift cards are purchased, the victims are instructed to send pictures of the gift card number. Card numbers are disseminated around the country within a few hours.
A "runner" receives the gift card numbers from others who obtained them directly from the victims. Runners use their smartphones to collect the gift cards' UPC information.
The UPC is scanned by the runner at a Walmart register, and the person liquidates the Walmart gift cards by purchasing prepaid debit cards or other gift cards.
The runner then takes pictures of the prepaid debit cards and gift cards. Photos are sent to others involved in the scheme, who cash in all those cards.
Investigators believe Chinese nationals are often used as the runners.
Victims are lured into the scheme by either responding to a text message, responding to an email, or searching for a particular type of financial service online, inputting basic information (name, phone), where a scammer will contact them, presumably from a fraudulent website.
Walmart investigators were able to backtrack where the gift cards were initially purchased (usually in different states) using receipts and provide law enforcement officials with the names of each victim and credit card information used to buy the cards.
Still shots from registers of suspects were also provided to investigators.
Liu was followed as he traveled from Fort Smith to Fayetteville. Investigators noted he stopped at several Walmart stores along the way.
Each time Liu stopped, investigators were able to confirm gift card transactions linked to the fraud scheme were completed.
On Nov. 4, Liu completed a little over $16,000 in gift card transactions, according to court documents.
Investigators believed Liu's transaction activity to be between $500,000 to $1 million in the last month.
Investigators believe Liu was just one runner in the scheme and that he is part of a multimillion-dollar scam.
Police were informed Liu was staying at a hotel in Fayetteville for the night. He was seen leaving around 9:30 a.m. Nov. 5.
After leaving the hotel, Liu visited at least five Walmart stores, completing transactions ranging from $1,000 to $3,200 at a time, according to authorities.
Following the transactions, investigators spotted Liu exiting the store, getting into his vehicle and immediately getting on his phone. A short time later, he exited his vehicle and went back into the store to complete more transactions.
Later that day, investigators spotted Liu making transactions at Walmart stores in Springdale before traveling to Rogers.
At approximately 4:22 p.m., Liu arrived at a Walmart in Rogers, Arkansas. Investigators waited inside the store and watched Liu enter the store on the grocery side, near self-checkout registers.
Liu grabbed gift cards from a display near the registers. He walked through the store and selected a red gift bag before entering the self-checkout area.
Investigators watched Liu scanned what appeared to be a UPC on his device before scanning multiple gift cards, exactly as described by Walmart investigators.
After completing the transactions, Liu attempted to leave the store. Detectives approached him and escorted him outside.
Janet Robb, president and CEO of the Arkansas Division of the Better Business Bureau, said this is a common tactic used by scammers.
“These individuals are out gathering up gift card numbers to use just like this young man in Northwest Arkansas did recently and used it to go to Walmart use those points to buy other gift cards," Robb said. "It's all part of a scam."
It was confirmed that Liu had completed a transaction totaling $1,408.82 at the store, authorities said.
Liu was placed under arrest for theft by deception and transported to the Benton County Detention Center to be held for a bond hearing.
He will face federal prosecution for his involvement in the fraud scheme.
Liu is in the United States on a student visa.
Records show he lives in Amherst, Massachusetts, and was in the country to attend the University of Massachusetts.
He confirmed with authorities that he visited numerous stores in Arkansas and completed gift card transactions.
He is being held on a $50,000 cash bond.
A Chinese national student was arrested in Arkansas for his suspected involvement in a nationwide, multimillion-dollar Walmart gift card scam.
Walmart global investigators contacted the Benton County Sheriff's Office on Nov. 4 about an ongoing theft investigation involving a variety of phone and internet scams, KFSM-TV reported.
Advertisement
Walmart's investigators had been tracking 23-year-old Songhua Liu as a person of interest as he traveled through Arkansas.
It was believed Liu was involved in a scam designed to convince, coerce, trick, or otherwise prompt victims to buy Walmart gift cards.
Once gift cards are purchased, the victims are instructed to send pictures of the gift card number. Card numbers are disseminated around the country within a few hours.
A "runner" receives the gift card numbers from others who obtained them directly from the victims. Runners use their smartphones to collect the gift cards' UPC information.
The UPC is scanned by the runner at a Walmart register, and the person liquidates the Walmart gift cards by purchasing prepaid debit cards or other gift cards.
The runner then takes pictures of the prepaid debit cards and gift cards. Photos are sent to others involved in the scheme, who cash in all those cards.
Investigators believe Chinese nationals are often used as the runners.
Victims are lured into the scheme by either responding to a text message, responding to an email, or searching for a particular type of financial service online, inputting basic information (name, phone), where a scammer will contact them, presumably from a fraudulent website.
Walmart investigators were able to backtrack where the gift cards were initially purchased (usually in different states) using receipts and provide law enforcement officials with the names of each victim and credit card information used to buy the cards.
Still shots from registers of suspects were also provided to investigators.
Liu was followed as he traveled from Fort Smith to Fayetteville. Investigators noted he stopped at several Walmart stores along the way.
Each time Liu stopped, investigators were able to confirm gift card transactions linked to the fraud scheme were completed.
On Nov. 4, Liu completed a little over $16,000 in gift card transactions, according to court documents.
Investigators believed Liu's transaction activity to be between $500,000 to $1 million in the last month.
Investigators believe Liu was just one runner in the scheme and that he is part of a multimillion-dollar scam.
Police were informed Liu was staying at a hotel in Fayetteville for the night. He was seen leaving around 9:30 a.m. Nov. 5.
After leaving the hotel, Liu visited at least five Walmart stores, completing transactions ranging from $1,000 to $3,200 at a time, according to authorities.
Following the transactions, investigators spotted Liu exiting the store, getting into his vehicle and immediately getting on his phone. A short time later, he exited his vehicle and went back into the store to complete more transactions.
Later that day, investigators spotted Liu making transactions at Walmart stores in Springdale before traveling to Rogers.
At approximately 4:22 p.m., Liu arrived at a Walmart in Rogers, Arkansas. Investigators waited inside the store and watched Liu enter the store on the grocery side, near self-checkout registers.
Liu grabbed gift cards from a display near the registers. He walked through the store and selected a red gift bag before entering the self-checkout area.
Investigators watched Liu scanned what appeared to be a UPC on his device before scanning multiple gift cards, exactly as described by Walmart investigators.
After completing the transactions, Liu attempted to leave the store. Detectives approached him and escorted him outside.
Janet Robb, president and CEO of the Arkansas Division of the Better Business Bureau, said this is a common tactic used by scammers.
“These individuals are out gathering up gift card numbers to use just like this young man in Northwest Arkansas did recently and used it to go to Walmart use those points to buy other gift cards," Robb said. "It's all part of a scam."
It was confirmed that Liu had completed a transaction totaling $1,408.82 at the store, authorities said.
Liu was placed under arrest for theft by deception and transported to the Benton County Detention Center to be held for a bond hearing.
He will face federal prosecution for his involvement in the fraud scheme.
Liu is in the United States on a student visa.
Records show he lives in Amherst, Massachusetts, and was in the country to attend the University of Massachusetts.
He confirmed with authorities that he visited numerous stores in Arkansas and completed gift card transactions.
He is being held on a $50,000 cash bond.
