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Crypto Hacks to Watch Out For: Sim Swapping

August 22, 2018

 

In terms of losing money to hackers, it does appear that the Blockchain industry is leading the pack. This month, one of the latest instances involved a form of hacking called sim swapping that resulted in one man losing $24 million worth of Crypto.

 

The specifics of the case reveal what sim swapping is, which appears to be a specific type of identity theft that begins with acquiring someone else’s cellphone number in order to access some sort of information that is tied to it.

 

 Without having access to all of the relevant information of the case, it is still clear that this information was this particular man’s Crypto stash. According to his complaint that was filed against his cellphone provider, AT&T, they gave out his phone number to the hackers without requiring any sort of personal information to verify the identity of who was asking for it.

 

In gaining access to his phone number, it seems that the hackers also essentially became him in that it is suggested that they put a SIM card into a different phone with the man’s number on it to access his Crypto wallet.

 

What logically comes into question with his claim, however, is how they gained access to his Crypto stash with only his phone number to work with?

 

Reasonably, it could be extrapolated that he was using a mobile wallet for all of his holdings.

 

If this is true, then it could be said that they acted as if they were him and accessed whatever Crypto he had by resetting his wallet password with an authorization code that was sent to his phone.

 

What you might find yourself asking here is: how do we learn from such hacks to better protect ourselves, especially when cellphone companies can be our undoing due to their lack of security measures?

 

To put it simply, it could all come down to using a hardware wallet, above all others. In other words, it could be better to use a dedicated flash drive like this instead of a wallet that can be accessed via a cellular network. If you do this, then the only way that hackers can gain access to your Crypto is by physically breaking into your hardware wallet.

 

All in all, we can conclude by chalking this up as another unfortunate point against all Crypto wallets that can be remotely accessed.

 

 

By: BGN Editorial Staff

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