Smith trawled Reddit and other online sources to find people reporting the scam and find URLs being used, which he subsequently published. Some of the websites running the Smishing Triad’s tools were collecting thousands of people’s personal information per day, Smith says. Among other details, the websites would request people’s names, addresses, payment card numbers and security codes, phone numbers, dates of birth, and bank websites. This level of information can allow a scammer to make purchases online with the credit cards. Smith says his wife quickly canceled her card, but noticed that the scammers still tried to use it, for instance with Uber. The researcher says he would collect data from a website and return to it a few hours later, only to find hundreds of new records.
The researcher provided the details to a bank that had contacted him after seeing his initial blog posts. Smith declined to name the bank. He also reported the incidents to the FBI and later provided information to the United States Postal Inspection Service (USPIS).
Michael Martel, a national public information officer at the USPIS, says the information provided by Smith is being used as part of an ongoing USPIS investigation and that the agency cannot comment on specific details. “USPIS is already actively pursuing this type of information to protect the American people, identify victims, and serve justice to the malicious actors behind it all,” Martel says, pointing to advice on spotting and reporting USPS package delivery scams.
Initially, Smith says, he was wary about going public with his research as this kind of “hacking back” falls into a “gray area”: It may be breaking the Computer Fraud and Abuse Act, a sweeping US computer-crimes law, but he’s doing it against foreign-based criminals. Something he is definitely not the first, or last, to do.
Multiple Prongs
The Smishing Triad is prolific. As well as using postal services as lures their scams, the Chinese-speaking group has targeted online banking, e-commerce, and payment systems in the US, Europe, India, Pakistan, and the United Arab Emirates, according to Shawn Loveland, the chief operating officer of Resecurity, which has consistently tracked the group.
The Smishing Triad sends between 50,000 and 100,000 messages daily, according to Resecurity’s research. Its scam messages are sent using SMS or Apple’s iMessage, the latter is encrypted. Loveland says the Triad is made up of two distinct groups—a small team led by one Chinese hacker that creates, sells, and maintains the smishing kit, and a second group of people who buy the scamming tool. (A backdoor in the kit allows the creator to access details of administrators using the kit, Smith says in a blog post.)
“It’s very mature,” Loveland says of the operation. The group sells the scamming kit on Telegram for a $200-per month subscription, and this can be customized to show the organization the scammers are trying to impersonate. “The main actor is Chinese communicating in the Chinese language,” Loveland says. “They do not appear to be hacking Chinese language websites or users.” (In communications with the main contact on Telegram, the individual claimed to Smith that they were a computer science student.)
The relatively low monthly subscription cost for the smishing kit means it’s highly likely, with the number of credit card details scammers are collecting, that those using it are making significant profits. Loveland says that using text messages, which immediately send people a notification, is a more direct and more successful way of phishing, compared to sending emails with malicious links included.
As a result, smishing has been on the rise in recent years. But there are some tell-tale signs: If you receive a message from a number or email that you don’t recognize; if it contains a link to click on; and wants you to do something urgently, you should be suspicious.
