Greg's Corner

Ghost Tap Scam Bleeds Millions

By Greg Collier

A new form of credit card fraud, referred to as the “Ghost Tap” scam, has been identified and is currently under investigation by authorities in multiple states. The Knox County (TN) Sheriff’s Office recently issued a public warning regarding this emerging threat. According to their update, the scam involves criminal groups using digital wallet applications to make fraudulent purchases with stolen credit card data. These purchases often take the form of gift cards, which are then sold online to obscure the trail of the original transactions.

Investigators have linked the operation to organized criminal rings primarily involving foreign nationals, who travel from states with large populations and more intense enforcement to smaller regions they perceive as less guarded. Since August 2024, law enforcement officials have apprehended over ten suspects connected to this scheme in Knox County alone. Authorities believe losses are in the millions due to these fraudulent transactions.

The process is swift and largely invisible to the average person. Stolen credit card information is stored within a digital wallet, allowing suspects to make contactless purchases without possessing a physical card. This tactic enables them to bypass certain security checks and quickly convert the fraudulent funds into untraceable assets like gift cards. These cards are then resold through various online marketplaces, making it difficult to identify the original source of the funds.

Officials warn that the Ghost Tap scam often operates in tandem with phishing schemes. Victims may receive text messages claiming there are problems with toll payments, package deliveries, or bank accounts. The messages typically include a link urging the recipient to enter personal or financial information. These tactics are used to collect data that may later be exploited in digital wallet fraud.

To counteract these threats, the sheriff’s office advises the public to remain skeptical of unsolicited messages requesting sensitive information. They also stress that no legitimate agency will ever demand payment through gift cards or request private data over the phone. Any such contact should be treated as suspicious and reported to the appropriate authorities.

The local Organized Retail Crime Unit has been central to recent enforcement actions, utilizing new investigative tools to identify suspects as soon as they arrive in the area. Officials hope that raising awareness will help deter future incidents and encourage prompt reporting of suspicious behavior. With digital wallets becoming increasingly common, scams like Ghost Tap represent a growing challenge that demands both public caution and coordinated enforcement.