Chinese Hackers: $1 Billion SMS Scam in the US

US officials are warning about an organized wave of SMS fraud, where victims are tricked into revealing card details. According to the US Department of Homeland Security, Chinese networks responsible for the scams have earned over $1 billion in the last three years.

The scammers send mass messages warning of late payment of tolls, debts to the post office, or fines for traffic violations. The SMS messages direct victims to fake websites where they are asked for their name, bank card details, and a one-time code.

Criminals use software to create phishing websites and can see in real time what each victim types. They then request a one-time code to install the stolen card on a mobile phone in Asia.

Gangs flood citizens with messages through so-called SIM farms. At least 38 such 'farms' operate on US soil.

Scammers recruit partners in the US via Telegram, who make purchases with the stolen cards. The products are shipped to China, where they are resold.