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American telecom giant AT&T is being sued after one of its customers was allegedly scammed out of cryptocurrency in a SIM swap attack. Jamarquis Etheridge, a Texas, US-based man sued AT&T after he lost cryptocurrency tokens worth $560,000 (roughly Rs. 4 crores) from an account linked to his phone number. As per reports, Etheridge fell prey to a SIM Swap attack in which scammers dig out the numbers of potential victims and get them changed by network operators. After losing his Ether (ETH) tokens, Etheridge decided to take legal action against AT&T, questioning its user security provisions and demanding compensation
A customer of AT&T lost his fund because of the sim swap attack. Victim claimed that the company is aware about such kind of scams but still they authorised the hacker to access the account.
On Wednesday, a Texas resident filed suit against mobile carrier AT&T for violations of state law. The complaint accuses AT&T Inc. of failing to safeguard the plaintiff’s information in connection with a SIM swap that it permitted to occur, allegedly exposing the plaintiff to cryptocurrency theft and indeed causing hackers to empty his exchange account.
For years, security experts have encouraged developers to protect their applications by implementing multi-factor authentication (MFA) as an additional layer of cybersecurity other than passwords. But unfortunately, this has proven to be inadequate. According to a survey conducted by Sift, account hijacking scams increased by 250% in 2020, despite the addition of MFA.
The UK’s high street banks have been called out for “shockingly low” reimbursement rates for Authorized Push Payment (APP) fraud. APP fraud is an increasingly popular type of scam in which the fraudster — posing as a trusted entity such as a family member or business — tricks the victim into transferring money to a bank account under their control. It cost an estimated £479m in 2020.
SMS is often used as a carrier to send one-time passwords (OTP) to provide additional security for two-factor authentication when digital consumers access web or mobile applications. Unfortunately, SMS carrying an OTP is not enough. As hackers become more sophisticated, it’s becoming easier for them to compromise web or mobile applications with a wide range of out-of-band exploitation techniques that include carrier sniffing (SS7 attacks), malware (acting as a man-in-the-middle) and social engineering tactics (conveniently performing SIM swap fraud), all of which can successfully compromise security and grant fraudsters access to sensitive data.
Your cellphone number is a single point of failure.
Think about it. You use your cellphone number all the time. You use it when you sign up to sites and services, and sometimes you’ll use it to log into an app or a game on your phone. Your phone number can be used to reset your account if you forget your password. And, you use it for two-factor authentication to securely login to your accounts.
Mr. Shapiro claims AT&T employees took bribes from hackers and gave them control of his mobile account 4 times over the course of one year. Mr. Shapiro also claims that the hackers then used their control over his mobile account to take control of his personal and digital finance accounts and steal more than $1.9 million from him.
Mr. Terpin claims that AT&T allowed an illegal sim swap to occur after an imposter posing as Mr. Terpin obtained Mr. Terpin’s telephone number from an insider cooperating with the hacker without the AT&T store employee requiring him to present valid identification or to give Mr. Terpin’s required password.
Mr. Williams claims that AT&T employees gave hackers control over his mobile account and phone number through an unauthorized SIM swap, and because of that, the hackers were able to take control of his personal and financial accounts, steal his cryptocurrency, and destroy his business, all resulting in the loss of Mr. Williams’ $2 million investment.
Mr. James Chen claims that AT&T employees gave unauthorized access to hackers in a sim swap which allowed the hackers to steal $764,168.00 from his bank accounts. The hackers then created a new cryptocurrency account, purchased cryptocurrency using the stolen money for themselves.
Ms. McCants claims that AT&T agents were paid to override security measures on her mobile account and allowed an unauthorized user to access her confidential account information. The information accessed then lead to Ms. McCants attack.
Watch Rob Ross interviewed on NBC5 in Cincinnati
SIM Swapping Victims Who Lost Millions Are Pressuring Telcos to Protect Their Customers
Rob Ross interviewed by FOX news in San Francisco
Robert Ross & Santa Clara County DA Erin West interviewed by ABC7 Michael Finney
Donations to StopSIMCrime are used to raise awareness by supporting this website, travel to present at events, help victims recover their money, and stop carriers from giving our service to criminals.
A portion of your donation may be used to provide funding for lawsuits against the carriers and criminals. Because the carriers’ Terms of Service do not allow for legal class actions, each victim must take action individually, which may benefit victim individual. For that reason, we are not able to get tax-exempt status. To be clear, your donation is not tax deductible. However, our intention is that our collective efforts through your support will compel the carriers to fix the problem.