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ZDNET Highlights
- Toll and delivery related scam texts have made Chinese scammers billions.
- US-based mules are paid to max out credit cards digitally cloned from the stolen data.
- Luxury goods purchased with the victims’ money are shipped to China.
Chinese scammers have made more than $1 billion over the past three years by sending scam text messages, authorities have warned.
As reported wall street journalThose annoying scam messages you receive – claiming you forgot to pay the toll, you have unpaid traffic violations, or owe US Postal Service fees – hide a dark, “billion dollar, highly sophisticated business.”
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Who is behind the scams?
Department of Homeland Security officials have blamed cybercriminals operating from China for spam text messages related to fraudulent toll charges and USPS demands.
According to the WSJ, Chinese criminals are operating server farms that send scam messages to US residents. These so-called “SIM farms”, many of which have been found in the US but operate remotely, can send thousands of scam messages with little human oversight.
Unfortunately, however, American gig workers recruited through the WeChat messaging platform are also being framed as mules.
What do these criminals want?
If victims fall for one of these scam messages, they are asked to hand over their credit or payment card details, as well as a one-time passcode, through fraudulent phishing websites. Once this financial information is handed over, individuals in the US then create digital, cloned cards with the stolen card information for what the WSJ calls “small fees.”
For example, a mule is paid 12 cents for every $100 gift card purchased using fraudulent financial information.
These cards are created when a scammer stores stolen credit card information into Google or Apple Wallet and then shares these numbers with US-based mules.
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The card is then used to purchase luxury items like an iPhone, clothes or gift cards. The physical products are then shipped to China.
How can I spot a scam text?
Fraudulent text messages, also known as phishing messages, typically share some common themes.
First, the scammer will pretend to be from a recognizable and trusted service. In this case, the cybercriminal gang is using the U.S. toll system and the Postal Service, but in others, you may encounter telecommunications providers like Verizon or T-Mobile, student loan companies, federal departments, or your bank.
The next part of the scam’s text will make demands of you, and often threaten you with some kind of penalty – such as an extortionate fine or a lawsuit – unless you immediately comply.
Too: Have you received a suspicious Amazon refund text? Don’t click on the link – it’s a scam
Its purpose is to create a feeling of panic in the victim. If you’re emotionally charged or engaged, you won’t necessarily think logically, and you’re more likely to engage in risky behavior — like handing over sensitive information — without taking a step back and considering whether a text message is actually genuine.
There will also be a link. When clicked, this link will send you to a fraudulent website disguised as the website of the company mentioned in the scam text. The website address may also be fake or be worded slightly differently from the legitimate service. For example, the real www.t-moBile.com website can be spoofed as www.t-moBlood.com.
Other indicators of scam text messages include unknown numbers, spelling mistakes, and strange grammar.
What should I do if I receive a scam message?
We encounter them so often that it can be painful to process them. Still, you should report the message as spam (or junk), as this helps telecom providers monitor active scams and connect the dots to the numbers used to propagate them. Once you’ve reported it, block the number and delete the messages from your device.
If you’re not sure whether a message is a scam or not, do not respond to it and do not click on any links. Instead, call or directly contact the service where the message came from, as they will be able to confirm or deny whether the message was genuine or not.
Also: I Deliberately Clicked on Four Secret Online Scams – to Show You How They Work
It may also help if you type some of the content of the number or message with the word “scam” in a search engine, as many people online share their experiences with scam text messages.
And remind family members and friends to treat every such text message as suspicious until proven otherwise.
What should I do if I fall for a scam text?
If you have fallen for one of the scam text messages included in the report, and hence, have handed over your payment card details, you need to act fast.
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Immediately contact your payment card provider or bank and request a hold on your card. You may also be able to freeze your card and block fraudulent transactions from the associated mobile app, if the issuer offers this feature.
In any case, you should still notify the organization that you have fallen for a scam. I also recommend that you consider freezing your credit to prevent any follow-up attempts at ID theft.
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