Millions of dollars have been stolen in a wave of sophisticated SIM swap scams targeting crypto holders, sparking a warning for crypto users to remain vigilant. Over the past four months, 54 SIM swaps have resulted in a staggering $13.3 million being stolen, according to on-chain detective ZachXBT. The seriousness of the issue was addressed by John Deaton, a crypto lawyer and founder of Crypto Law, who highlighted the believability of these scams, describing the hackers involved as very sophisticated.
When a victim’s account is compromised, scammers employ tactics such as creating a sense of urgency with false claims to drain users’ assets. As a precautionary measure, experts are advising against relying on SMS two-factor authentication (2FA) and instead recommend using an authenticator application or security key to secure accounts.
ZachXBT, a prominent investigator of crypto scams, shed light on the patterns observed in the 54 SIM swaps. The majority of victims were located in the United States, with common mobile carriers targeted including T-Mobile, Verizon, and AT&T.
Interestingly, one of the targets of a SIM swap attack was John Deaton himself. In March of this year, his account on Uphold, a digital wallet and trading platform, was frozen. Deaton recounted the incident, stating that the attacker had called him after sending an email requesting verification. Claiming to be from Uphold Verification, the attacker convinced Deaton that he needed to update his information in order to comply with anti-money laundering laws. Deaton noted how sophisticated the attacker appeared, emphasizing the ease with which individuals could fall victim to such scams.
SIM swap attackers typically impersonate their victims, gaining access to their phone numbers and mobile carriers. The FBI has explained that these criminals employ social engineering techniques to deceive customer service representatives of mobile carriers into connecting the victim’s phone number to a SIM card under their control. Once successfully completed, these criminals have unfettered access to texts and authentication codes required to infiltrate a victim’s bank account or crypto wallet.
As the number of SIM swap scams continues to rise, crypto holders are being urged to exercise caution and remain alert to any suspicious activity. By adopting stronger security measures and staying informed about potential threats, individuals can better protect their valuable crypto assets.
