Criminal organizations based in China have stolen more than $1 billion from Americans over the last three years by flooding the country with scam text messages. According to the Department of Homeland Security, the scams are growing more sophisticated and widespread, targeting victims with messages about fake toll violations, traffic tickets, and postal fees.
Once a victim clicks on the link in the message, they are directed to a fake website designed to collect personal and financial information. The information is then used to make purchases or loaded into digital wallets, where it can be accessed from abroad.
The scam is powered by SIM farms—networks of thousands of SIM cards operating simultaneously from one location. These SIM farms, often housed in boxes connected to networking equipment, allow scammers to send thousands of texts at once. Though operated by criminal groups overseas, the SIM farms are physically set up in the U.S. by gig workers recruited through the Chinese messaging app WeChat.
Authorities estimate that at least 200 SIM boxes are active in 38 different locations across cities like Houston, Miami, Los Angeles, and Phoenix. These setups can simulate the texting power of thousands of mobile phones, making them difficult to track.
The stolen financial data is used by domestic accomplices known as “mules,” who make purchases on behalf of the scammers. The mules, often paid just 12 cents per $100 in gift cards or goods, buy items like electronics and cosmetics, which are shipped to China and resold.
The volume of these scam texts has surged. Last month alone, Americans reported over 330,000 toll-related scam messages in a single day. The monthly average is now more than three times higher than it was at the beginning of 2024.
In a separate investigation, the Secret Service dismantled a SIM farm near New York City that had more than 100,000 SIM cards and 300 servers. The network was connected not only to text scams but also to swatting attacks targeting conservative officials, including Rep. Marjorie Taylor Greene and Sen. Rick Scott.
