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The flood of text messages started arriving early this year. They carried a similar thrust: The United States Postal Service is trying to deliver a parcel but needs more details, including your credit card number. All the messages pointed to websites where the information could be entered.
Like thousands of others, security researcher Grant Smith got a USPS package message. Many of his friends had received similar texts. A couple of days earlier, he says, his wife called him and said she’d inadvertently entered her credit card details. With little going on after the holidays, Smith began a mission: Hunt down the scammers.
Over the course of a few weeks, Smith tracked down the Chinese-language group behind the mass-smishing campaign, hacked into their systems, collected evidence of their activities, and started a months-long process of gathering victim data and handing it to USPS investigators and a US bank, allowing people’s cards to be protected from fraudulent activity.
In total, people entered 438,669 unique credit cards into 1,133 domains used by the scammers, says Smith, a red team engineer and the founder of offensive cybersecurity firm Phantom Security. Many people entered multiple cards each, he says. More than 50,000 email addresses were logged, including hundreds of university email addresses and 20 military or government email domains. The victims were spread across the United States—California, the state with the most, had 141,000 entries—with more than 1.2 million pieces of information being entered in total.
“This shows the mass scale of the problem,” says Smith, who is presenting his findings at the Defcon security conference this weekend and previously published some details of the work. But the scale of the scamming is likely to be much larger, Smith says, as he didn't manage to track down all of the fraudulent USPS websites, and the group behind the efforts have been linked to similar scams in at least half a dozen other countries.
Gone Phishing
Chasing down the group didn’t take long. Smith started investigating the smishing text message he received by the dodgy domain and intercepting traffic from the website. A path traversal vulnerability, coupled with a SQL injection, he says, allowed him to grab files from the website’s server and read data from the database being used.
“I thought there was just one standard site that they all were using,” Smith says. Diving into the data from that initial website, he found the name of a Chinese-language Telegram account and channel, which appeared to be selling a smishing kit scammers could use to easily create the fake websites.
Details of the Telegram username were previously published by cybersecurity company Resecurity, which calls the scammers the “Smishing Triad.” The company had previously found a separate SQL injection in the group’s smishing kits and provided Smith with a copy of the tool. (The Smishing Triad had fixed the previous flaw and started encrypting data, Smith says.)
“I started reverse engineering it, figured out how everything was being encrypted, how I could decrypt it, and figured out a more efficient way of grabbing the data,” Smith says. From there, he says, he was able to break administrator passwords on the websites—many had not been changed from the default “admin” username and “123456” password—and began pulling victim data from the network of smishing websites in a faster, automated way.
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Smith trawled Reddit and other online sources to find people reporting the scam and the 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 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. In addition to using postal services as lures for their scams, the Chinese-speaking group has targeted online banking, ecommerce, 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 being 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 using text messages that 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 you don't recognize, if it contains a link to click on, or if it wants you to do something urgently, you should be suspicious.
