Chinese Cybercrime Rings Drain Over $1 Billion from Americans Through Massive Text Scam Network
U.S. investigators uncover a sprawling fraud operation run by Chinese criminal syndicates using fake toll, postal, and traffic messages to steal credit card data.
The United States is facing a growing wave of text message scams designed to steal credit card data, driven by organized Chinese crime groups that have cost Americans over $1 billion in the past three years, according to federal investigators.
These fraudulent messages often appear as alerts about toll fees, postal charges, or traffic violations, luring victims into entering their credit card details on fake websites. Once captured, this information is used to purchase iPhones, gift cards, and luxury goods.
Inside the High-Tech Operations Behind the $1 Billion Chinese Text Scam Network
Authorities report that Chinese-based criminal networks are behind most of these scams, which operate through a black market linking cybercrime hubs to “server farms” that send out fake texts. The data stolen is funneled through independent workers in the U.S., who use the stolen cards to make purchases for small commissions.
A key element of the operation involves SIM farms — rooms packed with hardware holding hundreds of SIM cards used to blast out text messages en masse. According to investigators, one operator can send as many texts as a thousand phones combined.
The messages typically direct recipients to fraudulent payment portals, often posing as E-ZPass toll systems or shipping services. These phishing sites, built with off-the-shelf software circulated on Telegram’s criminal channels, can record every keystroke and transfer the stolen data instantly to the scammers’ digital wallets.
Cybersecurity expert Gary Warner described these tools as “the easiest phishing site builders ever created,” warning that their simplicity fuels the surge in digital fraud.
China-Linked Fraud Networks Use Digital Mules to Industrialize Global Cyber Theft
Criminal groups also exploit remote payment technologies to bridge devices between Asia and the U.S., allowing fraudsters in China to complete purchases at American payment terminals as if they were physically present. This system effectively bypasses security protocols like two-factor authentication once a card is loaded into a digital wallet.
These “digital mules” — often hundreds of individuals across the U.S. — earn around 12 cents per $100 gift card purchased with stolen cards. The cards and goods are then shipped to China, where they are resold, funneling profits back into organized crime.
A recent case highlighted the scale of this operation: a Chinese national named Heng Yin pleaded guilty in a U.S. federal court to wire fraud and identity theft after using 107 stolen credit cards to buy nearly $5,000 worth of gift cards in Kentucky.
Experts warn that this growing cybercrime economy demonstrates how China-based fraud networks have industrialized digital theft, combining technical expertise, human recruitment, and cross-border logistics to exploit global payment systems.
