Chinese Cybercrime Gangs in the US Steal Over $1 Billion Through Fake Text Message Scams
Chinese cybercrime gangs are targeting Americans with large-scale fake text message scams, draining bank accounts in minutes through phishing tactics and SIM farms, according to a Wall Street Journal report.
World News: Chinese cybercrime gangs are behind a surge in fake text message scams targeting Americans, with millions receiving fraudulent messages on their phones each day. A Wall Street Journal report on scams reveals that over the last three years, these operations have stolen more than $1 billion through US bank fraud and phishing. US investigative agencies confirm that these scams are orchestrated from China, with criminals sending hundreds of thousands of phishing texts daily. On a single day in September, scammers sent a record 330,000 fake toll messages to US residents.
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The scale of these scams is made possible by SIM farms—facilities equipped with hundreds of SIM cards that allow cybercriminals to send thousands of messages from different numbers. These SIM farms are operated remotely from China but are physically located in US cities including Houston, Los Angeles, Phoenix, and Miami. Local gig workers manage the US-based SIM farms, while Chinese gangs coordinate the operations from abroad. Law enforcement agencies have uncovered dozens of these sites, exposing the extensive infrastructure behind the scams.
Scammers use highly convincing phishing tactics, often impersonating government agencies or services such as highway tolls, postal fees, or traffic violations. Victims receive messages containing links that closely resemble official websites. When a person enters sensitive details—such as name, card number, and one-time password—cybercriminals gain immediate access to their bank accounts. The US Federal Trade Commission (FTC) – Phishing Scams advises consumers to be cautious with unsolicited messages and to verify links before clicking.
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Stolen card information is loaded into digital wallets like Apple Wallet and Google Pay. Chinese criminal networks then hire US-based buyers via encrypted apps such as Telegram. These buyers, often gig workers, use the compromised cards to purchase electronics, clothing, and gift cards, which are shipped to China and resold. Despite handling high-value goods, gig workers receive only a small percentage of the proceeds, while most profits go to the cybercriminals.
Federal agencies are increasing efforts to disrupt these cybercrime rings. The FBI – Internet Crime Complaint Center and law enforcement units across the country are investigating SIM farms and related fraud schemes. According to Statista – Cybercrime Losses in the US, total losses from cybercrime continue to rise, highlighting the urgent need for public awareness and stronger digital security.
Experts recommend the following steps to avoid falling victim to phishing scams:
For more information, consult the official resources provided by the FTC and the FBI’s Internet Crime Complaint Center.
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