Authorities Nettle a Major Video Card Fraud Ring
A substantial crackdown in China led to the detention of 22 individuals suspected of orchestrating a large-scale graphics card scam. Police report that the group bought used video cards, refurbished them, and then sold them at inflated prices while making the hardware appear near new. The information comes from the videocardz portal.
The investigation stretched over roughly a year. Throughout this period, researchers uncovered that the fraudsters specialized in graphics cards previously used for cryptocurrency mining. By repurposing these mining GPUs, they slashed procurement costs and boosted their profit margins.
Authorities described a carefully coordinated scheme in which duties were split among four teams. One crew handled purchasing the devices, a second cleaned and retouched the hardware to erase signs of wear, a third prepared and packaged the GPUs in branded boxes, and a fourth group sold the products through online stores and social networks.
A warehouse search yielded video cards valued at about $2 million. Seven separate charges were brought against the suspects. Details about potential punishments for those involved were not disclosed.
Earlier records indicate that one of the scammers posed as a blogger and collected payments totaling approximately 220 thousand rubles from Russian associates.