Sim Swapping Scams Are On The Rise In The Crypto Space

Sim Swapping Scams Are On The Rise In The Crypto Space

The cryptocurrency space boom has always been predicted to work in favor of all the parties involved in the space. However, this growth is not one without its disadvantages as all, including scammers, have now exploited it to perpetrate evil acts. One such act is the Sim Swap Scam, which is currently on the rise in the cryptocurrency space. This malicious activity is carried out when the hackers can block the victim’s sim card and reconnect a new sim card to the old number, hereby gaining access to all the victim’s account.

California Man loses $27,000 in Bitcoin, Police reports

The latest of this crime is a California man, who the CA police report to have lost all of his investment in Bitcoin in a new sim swap scam. The nature of these types of scam means that after the hackers have now gotten access to the victim’s old number, they would be able to reset all passwords by accessing the one-time password (OTP) to unlock the accounts.

According to the police, the new victim wanted to remain anonymous, claimed to receive multiple texts of password resets from T-Mobile. Shortly after that, he also received anonymous calls from a number claiming to represent his Bitcoin wallet company. The dialler used deceitful means to extract his passwords and gained unauthorized access to his account.

The man started receiving different withdrawal alerts from his digital wallet service provider, and in a few minutes, all of his Bitcoin funds were gone. According to the police reports, the total amount carted away was about $27,000, which have left the victim in a state of trauma. The police are still investigating and hope to apprehend the culprits soon.

Sim Swap scams need to be attended to now

The reports of these new types of scams mean that it requires the world to pay close attention to it and regulatory bodies as well. The cryptocurrency space does not need this type of distraction at the moment, considering the mainstream adoption the market is gaining. A report of these scams was reported in 2019 when two men extorted about half a million dollars from crypto traders in California.

In 2018, a 15year old hacker defrauded the CEO of Transform Group, Micheal Terpin, about $24 million in digital assets. The frequency of these kinds of scams now means that crypto traders and the public must ensure that they protect their assets most securely.

In a bid to curb sim swap scams, many networks enable their customers to add passcodes to their wireless account and devise several means of two-factor authentication, which will be hard for any stranger to break into. Networks like MTN, Airtel, and AT&T have started several informative campaigns advising their customers to limit the information shared on Social media in a bid to reduce exposure to hacks and scams.