Chinese criminal gangs have reportedly made over $1 billion through the use of scam text messages and phone calls.
The Wall Street Journal reported that spam messages sent by criminal organizations based in China have been determined to be behind scam messages asking for payments that people don't need to pay.
These messages include fake toll payments, U.S. Postal Service fees, and unpaid traffic violations. The scams have reportedly resulted in criminal gangs earning over $1 billion in the past three years.
Investigators said that foreign criminal networks have been linked to server farms that sent out waves of scam text messages to people across the country. The victims would have their credit card information stolen through the use of various phishing websites, and U.S.-based gig workers would then max out the credit cards.
There were as many as 330,000 toll fee scam messages sent in a single day in September, and the average monthly volume is increasing rapidly.
“One person in a room with a SIM farm can send out the number of text messages that 1,000 phone numbers could send out,” said Homeland Security Investigations assistant special agent Adam Parks.
While the criminal gangs operate these so-called SIM farms remotely, U.S.-based gig workers are recruited through WeChat.
These SIM farms have been found to be operating across major cities throughout the country, including Houston and Los Angeles. There are as many as 38 farms throughout the U.S., some of which have been located in office spaces, auto-repair shops, and crack houses.
Criminals involved in these schemes have also been found to cover their tracks through money laundering by buying clothing, cosmetics, and iPhones. Another common trick is to purchase gift cards, further obfuscating the source of the money used to purchase goods that are then shipped to China.
A Chinese national, Heng Yin, pleaded guilty to wire fraud and identity theft charges earlier this year after he purchased as many as 70 gift cards using stolen credit card information.
