As the cryptocurrency industry continues to grow in number, it is becoming preyed on by the fraudsters and criminal groups aiming to exploit people’s money. In the year 2020, several cases have emerged where the criminals got access to the financial credentials of the victims and stole their funds.
As a result, law enforcement authorities from all over the world have started taking strict actions against criminals. The authorities from all around the world are working really hard to bring an end to these syndicates. Unfortunately, the syndicates are still on the loose and the authorities are finding it really difficult to control the situation.
Just recently, one of the major telecommunications providers T-Mobile found itself facing a lot of heat because of the same matter. The firm has now come under fire from the subscribers where it has been alleged of being negligent. The T-Mobile network users have to accuse the telecoms provider of failing and showing negligence in protecting the personal information of the users.
One of the T-Mobile customers has alleged that due to the network’s negligence, he ended up becoming a victim of a “SIM Swap Attack” that resulted in him losing over $450,000. At the time of writing, the $450,000 amount is equivalent to 15 Bitcoin (BTC).
The SIM Swap Attack, which is also known as the port-out scam has gained a lot of attention and adoption among the criminals. In the port-out scam, the criminals gain access to the phone number of the victim.
Once the number is acquired, the criminals then go on stealing the account passwords to the financial applications of the victim. When the accounts have been accessed, the scammers then steal the funds from the victim’s financial accounts.
It has been reported that one of the victims filed a lawsuit against the T-Mobile network on February 8, 2021. The lawsuit was filed by the plaintiff, Calvin Cheng, at New York’s Southern District.
In the lawsuit, the plaintiff has alleged the telecommunications network of being negligent of the services they must provide their users. Because of their failure to provide enough security, the plaintiff ended up losing around $450,000 worth of Bitcoin (BTC) to the SIM Swap Attack.
In the allegation, the plaintiff has claimed that in order for the criminals to transfer customers’ data from the original (legitimate) SIM to a criminally controlled SIM, the input of the network is required. Therefore, the network is as involved in the criminal act as the criminals that get the personal data transferred of the victim over to their SIMs.
With SIM Swap scams being on the rise, it is extremely important for the telecommunication networks to take strict actions and bring an end to such scams.