October 19, 2021

T-Mobile sued by victim who lost $450K in Bitcoin in SIM swap attack

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Telecoms provider T-Mobile has become the latest corporate name to come under fire for its alleged negligence and failure to protect customer information, which indirectly enabled a “SIM swap attack” that led to the successful theft of $450,000, or 15 Bitcoin (BTC).

A SIM swap attack — also referred to as a port-out scam — has proved to be a popular tactic with criminals in recent years. Such an attack involves the theft of a victim’s cell phone number, which can then be used to hijack the victim’s online financial and social media accounts by intercepting automated messages or phone calls that are used for two-factor authentication security measures. 

The lawsuit filed against T-Mobile on Feb. 8 in the Southern District of New York by plaintiff Calvin Cheng — the victim who alleges he lost $450,000 in Bitcoin following such an attack — explains exactly how it is that telecoms firms come to play such a crucial role in this particular kind of fraud: 

“A criminal third-party convinces a wireless carrier like T-Mobile to transfer access to one of its legitimate customers’ cellular phone number from the legitimate customer’s registered SIM-card […] to a SIM-cardTitle: T-Mobile sued by victim who lost $450K in Bitcoin in SIM swap attack
Sourced From: cointelegraph.com/news/t-mobile-sued-by-victim-who-lost-450k-in-bitcoin-in-sim-swap-attack
Published Date: Fri, 12 Feb 2021 13:39:33 +0000