China-based purveyors of SMS phishing kits are enjoying remarkable success converting phished payment card data into mobile wallets from Apple and Google. Until recently, the so-called “Smishing Triad” mainly impersonated toll road operators and shipping companies. But experts say these groups are now directly targeting customers of international financial institutions, while dramatically expanding their cybercrime infrastructure and support staff.
An image of an iPhone device farm shared on Telegram by one of the Smishing Triad members. Image: Prodaft.
If you own a mobile device, the chances are excellent that at some point in the past two years you’ve received at least one instant message that warns of a delinquent toll road fee, or a wayward package from the U.S. Postal Service (USPS). Those who click the promoted link are brought to a website that spoofs the USPS or a local toll road operator and asks for payment card information.
The site will then complain that the visitor’s bank needs to “verify” the transaction by sending a one-time code via SMS. In reality, the bank is sending that code to the mobile number on file for their customer because the fraudsters have just attempted to enroll that victim’s card details into a mobile wallet.
If the visitor supplies that one-time code, their payment card is then added to a new mobile wallet on an Apple or Google device that is physically controlled by the phishers. The phishing gangs typically load multiple stolen digital wallets onto a single Apple or Android device, and then sell those phones in bulk to scammers who use them for fraudulent e-commerce and tap-to-pay transactions.
china based phishing triad pivots banks
