Cryptocurrency Holders File Lawsuit Against US Telcos Over SIM Swapping Incidents

Neutral Cryptocurrency Holders File Lawsuit Against US Telcos Over SIM Swapping Incidents

Cryptocurrency users are often targeted by criminals. Especially those users who rely on exchanges to manage and store funds. A new lawsuit filed against AT&T and T-Mobile is of great interest in this regard. The lawsuit alleges that neither company did enough to prevent the SIM swapping attacks that resulted in the theft of more than $1 million in cryptocurrency.

What is SIM Swapping?

Theft of cryptocurrencies occurs in many different ways. One notably popular trend involves hijacking existing exchange user accounts. These accounts are often protected by two-factor authentication. For most exchanges, that equals to sending a text message to a mobile phone number associated with the user's account. It is a relatively secure method, but one that can also backfire.

Dozens of cryptocurrency users have fallen victim to SIM swapping over the years. Criminals claim phone numbers as their own by verifying the owner's identity. The necessary information to do so is usually obtained through social engineering or from social media platforms. Providers such as AT&T and T-Mobile are now charged with negligence when it comes to these SIM swapping attempts.

According to the lawsuit, several cryptocurrency investors have filed a lawsuit. Silver Miller is the firm spearheading this case at this time. Both providers face charges of "helping thieves in remotely taking over SIM cards". In virtually all cases, cryptocurrency funds have been lost in the process. One user lost roughly $621,000 due to such a SIM swapping attack.

Account Security Needs to Improve

Although two-factor authentication is a good measure, it is not always implemented correctly. Most cryptocurrency exchanges still consider this an optional step. Instead, they should enforce this method upon users to keep their funds safe. Secondly, moving away from text-based verification is another option worth considering. Google Authenticator or other solutions are equally secure and convenient.

This SIM swapping lawsuit can set a major precedent. If both mobile providers are found guilty, plenty of additional cases can be filed. The theft of mobile numbers in the cryptocurrency has been an ongoing problem. It is not native to the Bitcoin industry either. Any service provider relying on 2FA via SMS can have users "defrauded' in such a manner.

For cryptocurrency users, this is another wake-up call. Taking exchange account seriously is something that cannot be overlooked. With decentralized exchanges, attacks like these will become a lot less common. More and more trades already occur through such solutions in 2018. Security should always come first, regardless of how it affects convenience.

Are the crypto holders justified in their lawsuit? What can be done to protect against SIM swapping attacks? Let us know in the comments below. Images courtesy of ShutterStock

11/11/2018 / 15:00:23 Source: livebitcoinnews

BTC
1 BTC=$3,610.36
XRP
1 XRP=$0.3411
ETH
1 ETH=$96.75
XUC
1 XUC=$2.21
EOS
1 EOS=$2.62
BCH
1 BCH=$102.96

News Feed 50

Cointelegraph Neutral - Bitcoin Payment Processor Closes Seed Investment Round Backed by Tim Draper read more.
12/18/2018 / 22:40:00
Coindesk Neutral - Blythe Masters, CEO of Blockchain Startup Digital Asset, Is Stepping Down read more.
12/18/2018 / 22:31:14
Ccn Neutral - Wanchain 3.0 Adds Loopring Enabling On-Chain Decentralized Trading read more.
12/18/2018 / 22:19:57
Bitcoinist Neutral - Binance CEO Says ‘It Doesn’t Have to Be a Competition’ With Coinbase read more.
12/18/2018 / 22:00:09
Cointelegraph Neutral - Gaming Giant Atari to Launch ‘Blockchain Versions’ of Two Popular Games read more.
12/18/2018 / 22:00:00
Coinspeaker Neutral - Maltese Blockchain Bank Set to Start Operations by Mid-2019 read more.
12/18/2018 / 21:59:43
Cointelegraph Neutral - Russian Region Conducts Blockchain Election With 40K Participants read more.
12/18/2018 / 21:45:00
Newsbtc Neutral - Bitcoin Is Here to Stay: Blockstream Satellite Expansion Makes Sure of It read more.
12/18/2018 / 21:30:37
Cointelegraph Neutral - Pro-Bitcoin Official in the White House: What We Know About Trump’s New Chief Of Staff read more.
12/18/2018 / 21:20:00
Ccn Neutral - Binance Labs Launches 8 Blockchain Startups read more.
12/18/2018 / 21:16:31
Newsbtc Neutral - Novogratz: Interest Left Crypto for Macro, But Bitcoin Will Emerge As Store of Value read more.
12/18/2018 / 21:02:27
Bitcoin.Com Neutral - Cointext Rolls Out Mobile BCH Services in Bangladesh, Now Services 38 Countries read more.
12/18/2018 / 20:55:03
Cointelegraph Neutral - Korean Gov’t Pilots Blockchain for Logistics Innovation in Country’s Largest Port read more.
12/18/2018 / 20:54:00
Cryptoinsider Neutral - VeChain: Supply chain management protocol for counterfeit prevention read more.
12/18/2018 / 20:43:28
Coindesk Neutral - Overstock’s Medici Acquires Digital Tokens Representing Startup Equity Shares read more.
12/18/2018 / 20:41:31
Ccn Neutral - Bull Gone: Bitcoin Price Forming Doji to Signal Potential Trend Reversal read more.
12/18/2018 / 20:21:38
Themerkle Positive - Bitcoin Cash Price Rises to $100 And Overtakes Litecoin read more.
12/18/2018 / 20:00:51
Newsbtc Neutral - Bitcoin Sustains Above $3,500 After Widespread Market Rally read more.
12/18/2018 / 20:00:36
Coindesk Neutral - Tim Draper Invests $1.25 Million in Bitcoin Payments Processor OpenNode read more.
12/18/2018 / 20:00:06
Cryptoglobe Neutral - The Week: Stablecoin Basis Folds, Revolut Wins Banking License, Swiss Crypto Exchange Launching read more.
12/18/2018 / 20:00:00
Ccn Neutral - Stablecoin Company Tether Ltd. Made $6.6 Million in Interest from January to July 2018, Report Does Not Confirm Full Cash Reserves read more.
12/18/2018 / 19:23:04
Ethnews.Com Neutral - German Bank Tests Blockchain For Development In Africa read more.
12/18/2018 / 19:09:38
Themerkle Neutral - First Major Christmas 2018 Crypto Scam Targets Basic Attention Token read more.
12/18/2018 / 19:02:37
Bitcoinist Neutral - Blockstream Satellite Now Means Most Of The World Can Use Bitcoin Without Internet read more.
12/18/2018 / 19:00:09
Cryptoglobe Neutral - Iran Minister Indicates Support for Blockchain, Both Public and Private Uses read more.
12/18/2018 / 19:00:00
Ccn Neutral - Atari Partners With Startup to Make Blockchain Versions of Popular Titles like Roller Coaster Tycoon read more.
12/18/2018 / 18:56:55
Cointelegraph Neutral - Israel: Financial Services Firm GMT Joins RippleNet read more.
12/18/2018 / 18:52:00
Cryptopotato Neutral - EOS Block Producers Are in Risk of Bankruptcy Despite The Recent 25% Price Gain read more.
12/18/2018 / 18:34:32
Newsbtc Negative - Bitcoin Scam Alert: Criminals Demand BTC Payment to Call Off Hit Man read more.
12/18/2018 / 18:30:39
Ccn Neutral - Education The Biggest Barrier Preventing Online Investors From Purchasing Cryptocurrency read more.
12/18/2018 / 18:23:47
Cointelegraph Neutral - Belgium's Financial Watchdog Updates Crypto Scam Blacklist to Total 113 Sites read more.
12/18/2018 / 18:22:00
Cryptoglobe Neutral - BitMEX Trading Volume Way Down After Supports Broken read more.
12/18/2018 / 18:00:00
Coinspeaker Neutral - 550,000+ Hotels in 210 Countries Can Now be Booked with XRP read more.
12/18/2018 / 17:59:51
Cointelegraph Neutral - A Year After $20K, Blockchain Capital Exec Says Investors Will Regret Not Buying in Now read more.
12/18/2018 / 17:59:00
Themerkle Neutral - Institutional Investors No Longer Interested in Bitcoin: JP Morgan read more.
12/18/2018 / 17:41:35
Blokt Neutral - Japan’s New Crypto Regulation Draft Report Is Ready read more.
12/18/2018 / 17:29:23
Trustnodes Neutral - ICOs Now Trading on Exchanges With Investors’ ETH read more.
12/18/2018 / 17:28:21
Coinnounce Neutral - Bitcoin institutional adoption rising: BTC price analysis read more.
12/18/2018 / 17:24:41
Newsbtc Neutral - Electricity Consumption of Bitcoin is a Non-Issue: Solar Energy is Free in Some Regions read more.
12/18/2018 / 17:01:42
Blokt Neutral - NewEconoLab’s NeoRay Will Make NEO Smart Contract Development Easier read more.
12/18/2018 / 16:59:35
Financemagnates Neutral - eToro Survey Finds Huge Demand for Cryptocurrency Education read more.
12/18/2018 / 16:59:02
Bitcoin.Com Neutral - Transnistria Welcomes Crypto Miners, Plans to Expand the Industry read more.
12/18/2018 / 16:55:50
Ccn Neutral - Bitcoin Bear Market Is Scaring Off Institutional Investors, Claims JPMorgan read more.
12/18/2018 / 16:54:56
Coinspeaker Neutral - Basis Shutting Down Due to Regulatory Pressure read more.
12/18/2018 / 16:54:31
Ethnews.Com Neutral - Daily Byte: Tuesday, December 18, 2018 read more.
12/18/2018 / 16:43:07
Blokt Neutral - AlterVerse Will Adopt Enjin Blockchain for All of Its 17 Gaming Worlds read more.
12/18/2018 / 16:29:35
Cryptopotato Neutral - Crypto Market Update Dec.18: One Year Passed Since Bitcoin’s ATH. Following The Correction, What’s Next? read more.
12/18/2018 / 16:29:15
Cryptoinsider Neutral - ‘Proof of Keys’ is coming, but what is it? read more.
12/18/2018 / 16:26:28
Blokt Neutral - Dogecoin [DOGE] Exits Trading Range With 19% Surge read more.
12/18/2018 / 16:09:19
Ccn Neutral - Global Debt Hits $184 Trillion and 11.4% of it is From the US: Big Bubble? read more.
12/18/2018 / 16:02:57
Negative
4.1%
Neutral
94.5%
Positive
1.1%
Mixed
0.2%

Latest comments:

4 min
Hey Sam, how is it going? But I must explain to you how all this mistaken idea of denouncing of a pleasure and praising pain was born
3 min
Pretty good. Doing my homework.. No one rejects, dislikes, or avoids pleasure itself, because it is pleasure, but because
2 min
Any chance to go out? To take a trivial example, which of us ever undertakes laborious physical exercise, except to obtain some advantage
2 min
.. Maybe 40-50 mins. I don't know exactly. On the other hand, we denounce with righteous indignation and dislike men who are so beguiled
1 min
Anyway sounds great! These cases are perfectly simple and easy to distinguish.