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- 1 Criminals employ SIM swapping to access victims’ bank and cryptocurrency accounts illicitly and other sensitive data.
- 2 The FBI recorded 320 complaints of SIM swap attacks between 2019 and 2020, resulting in an estimated $12 Million loss.
- 3 In 2021, the agency received over 1,600 SIM swap complaints, causing estimated losses of approximately $68 Million.
To protect customers from increasing digital risks, the United States Federal Communications Commission (FCC) has proposed new rules to combat the proliferation of “SIM swap” and “port-out scams.”
Fraudsters are increasingly exploiting vulnerabilities in mobile communication networks to get unauthorized access to victims’ personal and financial information.
In this article, we’ll break down SIM swap fraud for you, explain how it works, and provide you with suggestions on how to secure your phone number.
How Do SIM Swap Attacks Work?
SIM swap attacks, a form of identity theft, are a real threat. Here’s how they work and how to protect yourself:
Information Gathering
Attackers start by collecting your details, often easily accessible through social media and public databases.
Requesting a SIM Swap
The carrier, thinking it’s helping you, deactivates your legitimate SIM card and transfers your number to a new one controlled by the attacker.
Controlling Your Number
Now, the attacker controls your phone number, allowing them to receive your calls and SMS messages.
Bypassing Two-Factor Authentication
Many online services use your number for two-factor authentication. The attacker can request password resets and receive verification codes via SMS.
Account Takeover
The attacker can access your online accounts once they have the verification codes. They can control your email and social media accounts and even empty your bank or cryptocurrency accounts.
What Are the Signs of SIM Swap Fraud?
Signs of SIM swap fraud include unexpected loss of mobile service, inability to make calls or texts, strange texts or calls regarding changes to your account, unfamiliar mobile banking transactions, loss of access to online accounts, and receiving notifications for actions you didn’t take.
If you encounter any of these signs, it’s crucial to contact your mobile carrier and financial institutions immediately to prevent further unauthorized access and potential financial losses.
How To Safeguard Yourself
Recognizing warning signs of a SIM swap includes detecting an inability to make calls or send texts, receiving activity notifications on an unfamiliar device, losing access to accounts, and spotting unauthorized transactions on financial statements. To enhance your protection:
- Practice vigilant online behavior, avoid clicking unknown email links, and maintain strong, unique passwords.
- Utilize authentication apps like Google Authenticator for two-factor authentication tied to your device rather than your phone number.
- Collaborate with banks and mobile carriers to stay informed about SIM swap activity and set up user alerts.
- Consider hardware security keys like YubiKey to defend against SIM swap attacks, as they offer physical, device-linked two-factor authentication.
Conclusion
SIM swapping can cause financial and social problems for those who become victims of these unscrupulous operations. To avoid being a victim of SIM jacking, phone owners must take precautions to safeguard their devices.
Implementing security steps with their phone company and limiting the number of personal accounts associated with their number can help prevent a SIM swapping attack.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
