Sim swapping hackers find our weakest link is our phone number

The beauty of bitcoin is that it’s anonymous or untraceable. We can use it without being observed by the government and thus can maintain a degree of privacy. However, this comes as a double-edged sword because what’s helpful to us is also helpful to criminals. Cryptocurrency may come with bonus features but these same features are also vulnerabilities in the hands of the wrong users. It’s like having superior weapons against your enemy, until your enemy manages to obtain those same weapons from you, then you’re on the receiving end of your own tech.

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A new type of hacker in town

And the kids of today are figuring this out really quickly. At least two cases – the first of their kind - involving 20 year olds have recently gone to trial, where they engage in a new type of crime called “port out scam”, “sim swapping” or “simjacking”. Ok so they’re not kids at 20, and that’s also why they are the first to actually be sentenced and are now sitting in jail after being caught by the Cybercrime and Identity Theft Bureau in this case of social engineering.

What is sim swapping?

Only two people may have been found guilty of this new cyber crime, but hundreds have become victims over the past year. Basically sim swapping is a scam where the hacker calls your telecoms cell phone service provider pretending to be you. This is a crime of social engineering, or identity theft. They may claim that they have lost their sim card and ask for their number to be ported to a new one, owned by the hacker. They use your address and social security number to prove they are you.

Once they have your number, they can place and receive calls pretending to be you on social media sights, as well as being able to breach the last line of defence on your cryptocurrency exchange, namely the “two-factor authentication”. Most exchanges request that you use this app so many of us probably know of it. Also there is sometimes text message-based 2fa which a hacker can use to reset your passwords, thus taking over control of your social media accounts or exchange wallets with your crypto in it.

“With someone's phone number you can get into every account they own within minutes and they can't do anything about it.”

Anonymous hacker

Online loopholes in our security systems

Simjacking has grown in popularity with hackers since they’ve found this flaw in the security system, and they’re using it to steal fiat, crypto and even your user name or handle on many of the social media platforms. These account handles are then sold on the black market or dark web for hundreds and even thousands of dollars. Fortunately we are catching up to them and making it harder to perpetrate this kind of hack. Still there will always be the weak link in the system, namely the human element. Hackers play upon the greed of the actual staff at cell phone companies by finding one on the inside that they can bribe for user information. This unfortunately will always be our vulnerability – our own collective greed and selfishness.

Crime does not pay

Fortunately these latest developments in the industry have led to the conviction of at least two such hackers and so will set an example for future potential cyber criminals. One of them ported the phone numbers of 50 individuals across the USA and successfully accessed 18 online accounts belonging to three victims, resulting in a theft of $10 000 in crypto. He actually targeted known crypto traders. The other hacker attacked 40 victims and stole $5 million in crypto. He got 10 years in prison as a result, so crime does not pay.

Celebrities as targets

Curiously there is an industry on the dark web that even sells your social media or gaming handles, particularly short and unique ones, which can go for anything from $500 to $5000 each. Celebrities are also big targets. One of the biggest superstars, Selena Gomez, got hacked on Instagram. With 150 million followers, she is possibly the biggest name out there, but hackers took over her account and there was little she could do. So user beware.

Is your phone number safe?

With our phone numbers being the weakest link in our online identities nowadays, it pays to regularly upgrade your security by changing passwords or requesting your service provider to ask for a password when any changes or sim porting is requested. Hackers may always be a step ahead of the game but we can stay on top of our game too – this numbers game where our days may be numbered unless we constantly up our game and play it safe by securing our cell phones.

Enjoyed reading today's report of the Crypto News?

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