A report has revealed that criminal groups based in China have orchestrated a sophisticated network of scam texts, generating over $1 billion in profits through fraudulent messages targeting U.S. victims. These messages, often mimicking legitimate institutions like the U.S. Postal Service and highway toll authorities, trick users into providing their credit-card details. Once obtained, the stolen data is used to facilitate fraudulent transactions, allowing criminals to purchase goods such as iPhones, gift cards, clothing, and cosmetics. Investigating agencies allege that these operations are supported by a black market linking foreign criminal networks to server farms that distribute the scam texts and phishing websites that collect credit-card information. The stolen cards are then used in conjunction with gig workers across the U.S. to maximize financial gains through fraudulent purchases. Card numbers are stored in Apple and Google Wallets in Asia before being used for purchases half a world away.
The Department of Homeland Security has blamed these criminal organizations for the toll and postal scams, which have become a major problem in the U.S. The scammers exploit the trust people have in these institutions to trick them into divulging sensitive financial information. The scale of the fraud is estimated to be in the billions, with criminal networks operating from China making the most of the situation by exploiting the global infrastructure of digital payments. The stolen data is then used to make purchases in the U.S., where gig workers are often used to max out stolen credit cards for a small fee. This entire process allows the criminals to profit from the fraud while leaving the victims to bear the financial consequences.
The involvement of major companies like Apple and Google in this fraudulent activity has raised concerns about the security of digital wallets and payment systems. Investigators warn that the integration of stolen card numbers into these platforms makes it easier for scammers to carry out large-scale fraud. The case highlights the need for increased oversight and stronger cybersecurity measures to prevent similar scams from affecting more people in the future. As the investigation continues, agencies are working to identify and dismantle the networks responsible for these fraud schemes, aiming to disrupt the flow of stolen credit-card information and curb the financial losses suffered by U.S. citizens.