Criminal organizations operating out of China have made more than $1 billion over the last three years by bombarding Americans with scam text messages, according to the Department of Homeland Security. Typical scam messages warn unsuspecting Americans of toll violations or postal fees, eventually asking for a credit card number.
The Wall Street Journal reports that the United States is currently facing an onslaught of fraudulent text messages, which officials say has turned into a highly sophisticated, billion-dollar business benefiting criminal networks based in China. These scam texts, which often claim that the recipient owes money for unpaid tolls, U.S. Postal Service fees, or traffic violations, are designed to trick unsuspecting victims into providing their credit card information.
Breitbart News previously reported on DMVs around the country warning consumers about fake text scams:
As digital scams are becoming increasingly sophisticated, the latest round of phishing attempts is targeting unsuspecting drivers across the United States. DMVs in at least three states — New York, Florida, and California — have reported a surge in fake text messages that employ fear tactics to deceive recipients into divulging sensitive data.
These fraudulent text messages, known as “smishing” or SMS phishing, falsely claim that the recipient has unpaid fees for traffic violations and threaten severe consequences, such as additional fines and the suspension of driving privileges, if the individual fails to comply with the demands. However, these texts do not originate from any official government agency and are part of a growing trend of scammers masquerading as legitimate entities to exploit unsuspecting victims.
According to investigators, the criminal gangs behind these scams take advantage of the stolen credit card details to purchase iPhones, gift cards, clothing, and cosmetics. The fraud is made possible by a trick that allows criminals to install stolen card numbers in Google and Apple Wallets in Asia, and then share the cards with people in the U.S. who make purchases on their behalf.
The scam texts are sent using so-called SIM farms, which are rooms filled with boxes of networking devices stuffed with small white cards that mobile customers typically insert into their new phones to begin making calls or sending texts. These farms enable a single person to send out the same number of text messages that would normally require 1,000 phone numbers.
Criminal gangs overseas typically operate the SIM farms remotely, but they hire gig workers in the U.S. to set them up. These workers are recruited through the WeChat messaging app and are provided with instruction manuals and live technical support. At least 200 SIM boxes are believed to be operating in at least 38 farms across the U.S., in cities such as Houston, Los Angeles, Phoenix, and Miami.
When a consumer receives a scam toll text and clicks on the link provided, they are directed to a phishing site where they are asked to enter their name, credit card, or bank information to pay their supposed bill. The criminals use software found on Telegram messaging app channels to create these sites, which allow them to watch every keystroke the victims type and enter the same information into wallets on their own smartphones.
The scammers then find people in the U.S. willing to make purchases on their behalf through Telegram channels. On any given day, the scammers employ 400 to 500 of these “mules,” who are paid around 12 cents for every $100 gift card they buy. The criminals use remote tap-to-pay software to create a virtual bridge between their phones in China and the mules’ phones in the U.S., allowing the mules to make purchases using the stolen credit card information.
Sometimes the mules buy products like iPhones, clothing, and cosmetics directly, but they often purchase gift cards to further cover their tracks. These gift cards are later used to buy goods, which are then shipped to China and sold there, with all the proceeds going to the Chinese organized crime groups.
The deluge of phishing texts is getting worse, with Americans reporting an all-time high of 330,000 toll-scam messages in a single day last month, according to Proofpoint, a company that filters mobile spam messages. The average monthly volume of toll-scam messages is now about 3 and a half times what it was in January 2024.
Breitbart News reported in September that the Secret Service busted a SIM farm with 100,000 SIM cards and 300 servers in the New York City area that was used in part to commit swatting attacks against prominent conservatives:
The U.S. Secret Service has uncovered a massive network of more than 100,000 SIM cards and 300 servers located within a 35-mile radius of New York City. The operation, believed to be run by foreign “nation-state threat actors” and criminals, was uncovered during an investigation into a surge of swatting calls targeting high-ranking government officials, including members of Congress and the Trump administration.
Targets of the swatting calls reportedly include Rep. Marjorie Taylor Greene (R-GA), Sen. Rick Scott (R-FL), and Nikki Haley. The Secret Service’s Advanced Threat Interdiction Unit, in collaboration with various law enforcement agencies, traced the swatting signals to several locations in the New York tri-state area. Upon further investigation, they found a sophisticated network of SIM servers capable of generating enormous amounts of phone traffic while rapidly switching out SIM cards to evade detection.
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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