Over 76,000 Fake Online Malls Identified
Some Also Had Credit Card Security Numbers Stolen
More than 800,000 consumers in Europe and the United States have been deceived by fake online shopping malls operated by Chinese organizations, resulting in the leakage of their personal information, the British daily The Guardian reported on the 8th (local time).
According to an investigation conducted by The Guardian together with major European foreign media and IT experts, a fraud network based in China has organized and operated over 76,000 fake online malls since 2015, collecting sensitive personal information such as names, phone numbers, and postal addresses of 800,000 consumers in the US and Europe. About half of these also had debit and credit card information leaked, including the three-digit security codes.
These websites attracted consumers by advertising famous brand clothing such as Dior, Nike, Lacoste, and Versace at drastically discounted prices. They maximized their lure effect by supporting various languages including English, German, Spanish, and Swedish. Most victims interviewed by the media reported that they either did not receive the items they ordered or received products unrelated to their orders.
Additionally, it was found that these sites received over one million purchase orders in just the past three years. Although not all payments following orders were successfully processed, the fraud organization was able to embezzle up to 50 million euros (approximately 73.5 billion KRW), the media noted. Despite many fake sites disappearing, about one-third (around 22,500) are still in operation.
The UK’s Chartered Trading Standards Institute (CTSI) described this case as "one of the largest fraud cases ever." Catherine Hart, CTSI’s Chief Officer, explained, "Most of these (website operators) are members of serious and organized criminal groups," adding, "Consumers become more vulnerable to phishing crimes as the collected data is misused by them."
Jake Moore, Security Advisor at software company ESET, highlighted the seriousness of the issue, stating, "Foreign intelligence agencies could use personal data for surveillance purposes," and "We must assume that the Chinese government potentially has access to the data." Simon Miller, Director of StopScams UK, also warned, "Data can be more valuable than selling goods," and "Leaked data would be very useful for hijacking bank accounts."
Meanwhile, the fraud group was confirmed to be based in Fujian Province, China, disguising itself as a trading company to evade surveillance. It was found that they hired IT developers and data collectors and paid salaries. Furthermore, after building the online mall fraud system, they provided the system for use by other groups as well.
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