Chinese crime rings made over $1 billion spamming American phones with text scams

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American citizens have lost over $1 billion to text message scams run by criminal groups operating in China, according to the Department of Homeland Security.

Fraudulent text messages are tricking people by pretending to be from organizations like the Postal Service or toll road authorities. These texts falsely claim you have unpaid fees or bills. If you click the links in these messages, you’ll be directed to fake websites that attempt to steal your credit card details.

According to investigators, thieves are using the stolen data to purchase items like iPhones, gift cards, and high-end products, which are frequently resold in China.

Massive network of SIM farms and phishing sites

These messages are sent using massive setups called “SIM farms” – rooms containing many devices, each loaded with hundreds of SIM cards. These farms can send millions of text messages daily. According to Homeland Security, there are at least 200 of these SIM farms operating in 38 locations across cities like Houston, Los Angeles, Phoenix, and Miami.

According to a Homeland Security agent, a single person using a SIM farm can send a huge volume of messages – equivalent to what 1,000 phone numbers could send. These operations, often based in the U.S., frequently rely on temporary workers found through the WeChat app.

These scam websites look like legitimate payment pages and trick people into giving up their personal and financial information. Once stolen, this information is used to add fraudulent payment methods to Apple and Google Wallets in Asia, letting criminals make purchases without needing the actual card.

Proofpoint, a cybersecurity company, reported a surge in toll scam texts, with Americans receiving a record 330,000 in one day this September. These types of scam texts are now happening more than three times as often each month compared to the beginning of 2024.

Investigators with Homeland Security believe that between 400 and 500 freelance workers in the U.S. are used each day to process payments made with stolen money. These workers earn only a small amount – just pennies – for every $100 in gift cards they handle.

Law enforcement has made several arrests related to this investigation. For example, Heng Yin, a Chinese citizen, admitted in August to committing wire fraud and identity theft in Kentucky. He used over 100 stolen credit card numbers to purchase gift cards using his phone’s contactless payment system, and will be sentenced next month.

Fraudulent messages, appearing on platforms like social media and through texts, have unfortunately tricked many people. Recently, a TikTok user – a man in his sixties – lost $120,000 to a romance scammer.

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2025-10-16 21:19