Chinese criminal gangs have reportedly stolen more than $1 billion from Americans over the past three years through an elaborate network of text message scams, according to the Department of Homeland Security. The scheme, known as smishing, involves sending fraudulent text messages that warn recipients of unpaid government fees, tolls, or fines, and then directing them to imitation websites where personal and financial information can be harvested. Once collected, this data is used to commit large-scale financial fraud.
Authorities say the operation relies on “SIM farms,” which are setups of hundreds or thousands of mobile cards and modems that can send out massive volumes of messages simultaneously. These SIM farms can be located in auto shops, shared office spaces, or other inconspicuous locations. Adam Parks, assistant special agent in charge at Homeland Security Investigations, explained that a single operator in a SIM farm can send as many messages as 1,000 phone numbers could, dramatically amplifying the reach of the scam.
Once victims input their personal information on fake websites, criminals transfer the data into digital wallets such as Google Pay and Apple Pay in Asia. These wallets are then linked to mobile phones operated by American gig workers, who are hired to make purchases with the stolen information. The items purchased, which often include gift cards, electronics, and iPhones, are subsequently shipped to China, completing the cycle of international fraud.
Officials across multiple U.S. states, including Florida, Massachusetts, Texas, Colorado, California, Minnesota, and Washington, D.C., have warned residents about the growing prevalence of smishing attacks. In one year alone, the FBI received nearly 60,000 complaints related to text-based toll scams. Cybersecurity researchers have noted that the number of such scams is rapidly increasing, with over 330,000 toll-related messages recorded in a single day last month, three times the volume seen at the start of 2024.
Many of the messages appear to come from government agencies or toll systems, such as E-ZPass, tricking recipients into believing they owe fees. Jennifer Givner, a spokesperson for the New York State Thruway Authority, said that authorities often have no way of identifying the perpetrators and that the scams continuously change, making them difficult to track or stop.
Experts say the smishing networks have become increasingly sophisticated, with criminal groups now selling pre-packaged kits on platforms like Telegram that include the hardware and software needed to launch these cybercrimes. Authorities urge the public to be vigilant, advising individuals not to respond to messages from unknown numbers and to verify any payment requests directly through official government websites. The Department of Homeland Security and the Federal Trade Commission continue to warn that public awareness and caution remain the most effective defenses against these rapidly evolving digital fraud schemes.
