August 24, 2023

Crypto Enthusiasts Lose $13.3M in Targeted SIM Swap Heists

by Nik Asti

Published: August 24, 2023 at 12:14 am Updated: August 24, 2023 at 3:28 am

by Victor Dey

Edited and fact-checked: August 24, 2023 at 3:28 am

In Brief

54 SIM swap attacks recorded in the last four months.

Over $13.3 million stolen, mostly in the U.S., with two cases in Canada.

T-Mobile and Verizon were the most exploited mobile providers.

$13.3 Million Stolen in SIM Swap Attacks: Crypto Security Crisis

The cryptocurrency realm faces a security quandary, as cybercriminals have purloined $13.3 million via 54 SIM swap assaults in the last four months. Even with bolstered safeguards on user accounts, existing security procedures appear inadequate, especially concerning major U.S. mobile carriers like T-Mobile, Verizon, and AT&T.

Fraud scheme with SIM card swap

SIM swap attacks on individuals in the crypto sector are increasing in frequency and sophistication. These attacks are not mere hacking attempts; rather, they employ intricate methods.

Cybercriminals gain entry to users’ mobile accounts and fabricate emergency scenarios to facilitate the illicit asset transfer. Cybersecurity expert ZachXBT cautions that although SIM swap attacks are not novel, the growing trend of such attacks targeting the crypto sector is unparalleled and concerning.

When an account is compromised scammers attempt to create a sense of urgency with a fake claim to drain your assets.
ZachXBT observes.

The Role of Mobile Providers

The focus also shifts onto mobile carriers, increasingly regarded as the vulnerable link in a chain of otherwise strong security measures. T-Mobile and Verizon emerge as frequent entry points for these SIM swap attacks, with AT&T also implicated. Despite the addition of extra security layers by some users, these defenses have failed against the attacks.

Even with two-factor authentication (2FA) via SMS, users discover themselves susceptible to these sophisticated hacking methods. Security experts presently champion the discontinuation of SMS for 2FA, urging users to transition to more resilient methods like authentication apps or hardware security keys.

Over the past four months $13.3M+ has been stolen as a result of 54 SIM swaps targeting people in the crypto space.

When an account is compromised scammers attempt to create a sense of urgency with a fake claim to drain your assets.

Never use SMS 2FA and instead use an… pic.twitter.com/Fu1C3syQJE
— ZachXBT (@zachxbt) August 23, 2023

The cryptocurrency industry, valuing decentralized control of assets, stands at a critical juncture. The surging SIM swap scams expose a significant vulnerability in the security framework, demanding swift attention.

This incident is a sounding a pressing call to action for individuals and institutions in the cryptocurrency sphere. As losses accumulate, the need for effective solutions intensifies.

Presently, users enhance their defenses with layered security measures. However, the potency of this protection hinges on security protocols established by mobile companies and authentication services.

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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti