Victims Sue AT&T, T-Mobile Over 'SIM Swap' Crypto Hacks

A cryptocurrency-focused law firm in the U.S. says it has filed lawsuits against AT&T and T-Mobile on behalf of victims of "SIM swapping" hacks.

AccessTimeIconNov 9, 2018 at 12:10 p.m. UTC
Updated Sep 13, 2021 at 8:34 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Silver Miller. a cryptocurrency-focused law firm based in the U.S., says it has filed arbitration claims against AT&T and T-Mobile on behalf of victims of "SIM swapping" cellphone hacks.

Initiating the court actions on behalf of clients that have lost funds to criminals that used the increasingly common method of infiltrating mobile devices to access cryptocurrency wallets and two-factor authentication codes, the firm alleges:

"By leaving holes in their security protocols and failing to properly train and monitor their employees, cellphone providers have assisted thieves in remotely taking over the SIM cards in people's smartphones, accessing financial records and account information of the victims, and emptying the victim's accounts of cryptocurrency and other valuable assets."

In a press release published Friday, Silver Miller said that one client, an AT&T customer, had had over $621,000 of cryptocurrency stolen via a SIM swap attack. The firm further alleges that the breach occurred after AT&T "had assured him it had increased security on his account following an earlier attempted hack."

Other cases have been filed against T-Mobile, with Silver Miller alleging that two clients had been robbed of $400,000 and $250,000, respectively, via SIM swaps "permitted" by the telcom firm.

While the service exists for legitimate reasons, such as SIM card damage or switching providers, SIM swapping can also allow criminals to arrange for a telecoms company to reassign a user's account to another SIM, allowing full access to all calls, messages and notifications.

Silver Miller said that all it takes for a swap to be arranged "a persuasive plea for assistance, a willing telecommunications carrier representative, and an electronic impersonation of the victim."

In a recent report from Krebs on Security, the REACT Task Force in California indicated that SIM swapping is rapidly increasing as a popular tool for hackers.

Samy Tarazi, a sergeant at the Santa Clara County Sheriff's office and a REACT supervisor, was quoted as saying:

"For the amounts being stolen and the number of people being successful at taking it, the numbers are probably historic. We're talking about kids aged mainly between 19 and 22 being able to steal millions of dollars in cryptocurrencies."

SIM card image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.