A digital currency focused law firm based in the US named Silver Miller, states it has filed arbitration claims against T-mobile and AT&T on behalf of victims of ‘Sim Swapping’ cellphone hacks.
Starting the court actions on behalf of customers that have lost funds to criminals that utilized the increasingly common practice of infiltrating mobile devices to access digital currency wallets and two-factor authentication codes, the firm asserts:
“By leaving holes in their security protocols and failing to train and monitor their employees properly, cellphone providers have helped thieves in remotely taking over the SIM cards in people’s smartphones, obtaining financial records and account information of the victims, and draining the victim’s accounts of digital currency and other valuable assets.”
As per Press Release published on Friday, Silver Miller stated that one client, an AT&T user, had over $6,21,000 of digital currency stolen via a SIM swap attack. The firm also alleges that the breach occurred after AT&T ‘had assured him it had increased security on his account following a prior earlier attempted hack.
Other cases have been filed on T-Mobile, with Silver Miller claiming that two clients had been looted of $400,000 and $250,000, respectively, via SIM swaps “allowed” by the telecom firm.
While the service exists for legitimate reasons like as SIM card damage or switching providers, SIM swapping can further enable criminals to arrange for a telecoms company to reassign a user’s account to different SIM, granting full access to all calls, notifications, and messages.
Silver Miller stated that all it takes for a swap to be arrange “a compelling plea for assistance, a reliable telecommunications carrier representative, and an electronic imitation of the victim.”
As per a recent report from Krebs on Security, the REACT Task Force in California showed that SIM Swapping is swiftly rising as a favorite tool for hackers.
Mr. Samy Tarazi, a sergeant at the Santa Clara County Sheriff’s office and a REACT supervisor, was cited as stating:
“For the amounts being stolen and the number of people being successful at taking it, the numbers are plausibly historical. We’re talking about kids aged mainly between 19 and 22 being able to steal millions of dollars in digital currencies.”