The U.S. Immigration and Customs Enforcement (ICE) Acting Director Todd Lyons has confirmed the breaking of the largest gift card fraud case in history by Homeland Security Investigations (HSI). This case was operated by a transnational crime organization related to the Chinese Communist Party, with the proceeds ultimately flowing back to China to fund military units within the CCP.
On Thursday, April 16th, Lyons confirmed this event during a congressional hearing. He solemnly pointed out that such fraudulent activities are not only economic crimes but also involve national security issues. He stated, “In essence, through these fraudulent activities, we are funding our own adversaries.”
According to HSI’s investigation, the modus operandi of these criminal activities seems simple, often swindling small amounts ranging from $15 to $20 from each gift card. However, through the large-scale operation of transnational crime networks, these small amounts combine to form a significant cash flow continuously funneled back to China.
Lyons revealed that the criminals involved primarily took advantage of border loopholes during the Biden administration to enter the U.S. as “military-aged Chinese males.” These individuals specifically targeted the most vulnerable groups in society, such as seniors in Iowa, using various fraudulent means to extract their savings.
This largest gift card fraud case in history is just one part of HSI’s investigation into transnational crime.
Previously, it was reported that 63-year-old Chinese citizen Jun Wang, holding a U.S. green card, was convicted of money laundering conspiracy on February 18th in a federal court in northern New York. This ruling stemmed from an international fraud money laundering network involving over $2.2 million worth of Walmart gift cards spanning across the U.S.
Judge Mae D’Agostino pointed out in her 20-page judgment that Jun Wang played a key role throughout the fraudulent chain – although he did not directly interact with the victims, he was responsible for converting and disguising the fraudulent proceeds and sending them back to China with his accomplices.
This case exposes the typical pattern of transnational gift card fraud: globalized fraud tactics, real-time cross-border transmission of gift card serial numbers, rapid money laundering through physical stores, and WeChat as a tool for international command chains.
Additionally, Lyons emphasized during the hearing the urgent need for continuous and stable funding support for ICE to address increasingly severe national security threats.
He presented budget requirements for the fiscal year 2027, including allocating $5.4 billion for enforcement and deportation operations, $2.6 billion to support HSI’s critical investigative missions, and $1.6 billion for mission support personnel.
Data shows that since January 20th, ICE’s operational pace has significantly accelerated, with nearly 457,000 foreign nationals arrested, including 281,000 individuals with criminal records, 8,400 suspected gang members, and over 1,600 known or suspected terrorists.
In addition to economic fraud, HSI’s investigative scope also covers human trafficking and child exploitation.
During the fiscal year 2025, HSI conducted over 4,800 arrest operations related to child exploitation, rescuing nearly 1,500 victimized children, dismantling over 2,400 human smuggling operations, and resulting in 3,100 convictions.