From 'Traffic Ticket' to Empty Wallet: How SMS Phishing by China‑Backed Rings Robs Americans

International News: Cybercriminal gangs linked to China have become a headache for millions of people in the United States. According to a Wall Street Journal report, fake text messages are being sent to American mobile phones every day, which people believe to be true, and they click on the links, resulting in their bank accounts being emptied in minutes.

According to US investigative agencies, this gang has defrauded over $1 billion (approximately ₹8,900 crore) in the last three years. In September, 330,000 fake toll messages were sent in a single day, a record so far.

Bank accounts being emptied in minutes

The WSJ report states that criminals trick victims into clicking on links by pretending to pay highway toll tax, post office fees, or traffic fines. The link appears to be a government website. As soon as a person enters their name, card number, and OTP, all the information is transferred to the criminals.

SIM Farms Operated from China

The power behind this fraud lies in SIM farms. These are locations where hundreds of SIM cards are installed, allowing a single person to send texts from thousands of numbers. These farms are remotely controlled by gangs based in China but are also operated by gig workers in US cities. Dozens of SIM farms have been discovered in cities like Houston, Los Angeles, Phoenix, and Miami.

Mobile Wallet Theft

Criminals install stolen credit cards into Apple Wallet and Google Pay. They then hire buyers in the US through the Telegram app. These buyers purchase iPhones, clothing, and gift cards from stores and then send them to China, where the criminals then sell them and pocket all the money.

According to experts, gig workers earn only 12 cents for every $100 purchased, but the criminals' profits are so substantial that this entire network has become a high-tech fraud industry.