Chinese Crooks Have Made $1 Billion from Scam Text Messages in the U.S.
Criminal syndicates operating from China have raked in over $1 billion in just three years by sending out fake text messages to Americans, according to the Department of Homeland Security. These messages often pretend to be official notices about unpaid tolls or postal fees and are designed to get victims to hand over their credit card numbers.
The Wall Street Journal revealed that the United States is being inundated by these fraudulent texts, which authorities describe as part of an advanced, large-scale operation benefiting criminal networks in China. The messages, which typically claim recipients owe money for toll violations or delivery charges, are used to steal financial information from unsuspecting victims.
As Breitbart News has previously reported, Departments of Motor Vehicles across the country have been warning about these text scams targeting drivers. Agencies in New York, Florida, and California have noted a spike in fake text messages using intimidation tactics to trick people into revealing personal data.
These “smishing” or SMS phishing schemes falsely tell drivers that they owe money for traffic fines and threaten severe penalties — such as suspended licenses or additional fees — if they don’t pay. In reality, none of these texts come from legitimate government agencies. They are part of a growing international web of fraudsters impersonating official institutions to deceive the public.
Investigators say the criminal groups running these scams use the stolen credit card numbers to buy luxury goods like iPhones, gift cards, designer clothing, and cosmetics. They exploit a loophole that allows them to load stolen card information into Google or Apple Wallets overseas and then share them digitally with people in the United States who make purchases for them.
The massive operations rely on “SIM farms,” which are warehouses filled with devices containing thousands of SIM cards — the tiny chips used in cell phones. These setups let scammers send out thousands of text messages from a single location, automating what would otherwise require countless phone numbers.
While the criminal masterminds control the SIM farms from abroad, they hire gig workers inside the U.S. to set up and maintain the equipment. These recruits, often found through the Chinese app WeChat, receive detailed instruction manuals and live tech support from overseas handlers. Authorities estimate that around 200 SIM boxes are currently active across 38 locations in cities like Houston, Los Angeles, Phoenix, and Miami.
When someone clicks the link in one of these fake toll notices, they’re redirected to a convincing phishing website asking for their name, credit card, or banking details. The scammers use tools shared on Telegram channels to build these fake sites, allowing them to monitor victims’ keystrokes in real time and immediately enter the same data into mobile wallets under their control.
The thieves then recruit people in the U.S. through Telegram to act as “mules,” who make purchases using the stolen data. Typically, 400 to 500 mules operate daily, earning about 12 cents for every $100 gift card they buy. Using remote tap-to-pay software, the scammers link their own phones in China to the mules’ phones in America, letting them spend the stolen money seamlessly.
In some cases, the mules buy high-end electronics or clothing, but more often they purchase gift cards to obscure the money trail. Those cards are later used to buy merchandise that’s shipped to China and resold for profit — with the proceeds funneling back to the organized crime rings behind the scheme.
The wave of fake texts is intensifying rapidly. Proofpoint, a company that monitors mobile spam, reported that Americans received a record 330,000 toll-related scam messages in a single day last month. The monthly average for such messages is now more than triple what it was at the start of 2024.
In September, Breitbart News reported that the Secret Service uncovered a massive SIM farm operation in the New York City area involving 100,000 SIM cards and 300 servers. The network was not only used for financial scams but also for “swatting” attacks targeting public figures.
The Secret Service said the operation, located within a 35-mile radius of New York City, was run by foreign “nation-state threat actors” and criminal organizations. The agency’s Advanced Threat Interdiction Unit traced the fake emergency calls to multiple sites in the tri-state area and found an elaborate network of servers capable of sending huge volumes of calls and texts while constantly swapping SIM cards to avoid detection.
Among those targeted by the swatting attacks were Rep. Marjorie Taylor Greene (R-GA), Sen. Rick Scott (R-FL), and Nikki Haley, illustrating how the same technology used for large-scale fraud is also being weaponized for harassment and intimidation.
{Matzav.com}
