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=$3,293.62
XRP
1 XRP=$0.2927
ETH
1 ETH=$87.26
XUC
1 XUC=$2.09
EOS
1 EOS=$1.97
BCH
1 BCH=$82.18

News Feed 50

Coinnounce Neutral - Can France become the Blockchain Nation? read more.
12/15/2018 / 05:00:50
Cryptoglobe Neutral - Crypto Payment Platform Coinify Expands in Europe Through BetterCoins Acquisition read more.
12/15/2018 / 05:00:24
Bitcoin.Com Neutral - Free Speech Social Network Gab Starts Accepting BTC read more.
12/15/2018 / 04:35:29
Coindesk Neutral - When There’s Blood in the Street (Why It’s Not Quite Time to Be Long Crypto) read more.
12/15/2018 / 03:52:17
Cointelegraph Neutral - Telecoms Giant AT&T Seeks Patent for Blockchain-Enabled Social Media ‘Mapping’ System read more.
12/15/2018 / 03:30:00
Themerkle Negative - Bitcoin Price Watch: Year-End Price Looks to Be Lower Than Anticipated read more.
12/15/2018 / 03:00:30
Bitcoinist Neutral - Peter McCormack Tells How He Turned $32K Into $1.2M and ‘Back to Pretty Much Zero’ read more.
12/15/2018 / 03:00:07
Cointelegraph Neutral - Ethereum-Based Chat Platform Lays Off 25% of Staff Due to Crypto Market Decline read more.
12/15/2018 / 02:45:00
Bitcoin.Com Neutral - Bitcoin Bull Thomas Lee Claims Market Is Wrong and BTC Should Be Much Higher read more.
12/15/2018 / 02:30:11
Ccn Neutral - Crypto VC Funding Deals are Falling Apart Due to Bear Market — Bad Time For Startups read more.
12/15/2018 / 02:23:38
Cointelegraph Neutral - Blockchain Incubator Binance Labs Releases First ‘Batch’ of Blockchain Projects read more.
12/15/2018 / 02:05:00
Cryptoglobe Negative - Chinese ASIC-Sellers Hurting As Bitcoin Mining on the Wane in China read more.
12/15/2018 / 02:00:00
Cointelegraph Neutral - Report: CEO of Largest Romanian Crypto Exchange Arrested on US Warrant read more.
12/15/2018 / 01:11:00
Ccn Neutral - Bitcoin Price Driven More by Speculation Than Utility: BitPay CEO read more.
12/15/2018 / 01:10:20
Cryptoglobe Neutral - NanoQuake: New Trailer Released read more.
12/15/2018 / 01:00:00
Ccn Neutral - Tron DApp Usage Jumps 48% — More Than 1 Million Transactions Last Week read more.
12/15/2018 / 00:33:16
Bitcoin.Com Neutral - Cryptocurrency Enthusiasts Can Pay $10 Million for a 12-Night Stay in Space read more.
12/15/2018 / 00:30:16
Cointelegraph Neutral - Major US Crypto Exchange Coinbase Adds Cash Withdrawals to PayPal read more.
12/15/2018 / 00:24:00
Cryptoinsider Neutral - The Flappening: Litecoin Overtakes Bitcoin Cash read more.
12/15/2018 / 00:06:45
Bitcoinist Neutral - Tighten that Belt!! read more.
12/15/2018 / 00:00:55
Ethnews.Com Positive - Having A Gas: This Week In Crypto Pop Culture, December 10-14 read more.
12/14/2018 / 23:44:19
Ccn Neutral - AT&T Wants to Create a Blockchain ‘Map’ of Your Social Media History read more.
12/14/2018 / 23:41:02
Cointelegraph Neutral - French Financial Regulator Blacklists Four Crypto Websites for Unauthorized Offerings read more.
12/14/2018 / 23:34:00
Newsbtc Neutral - The Crypto Markets May be in a Rout, But the Blockchain Job Market is in Full Swing read more.
12/14/2018 / 23:00:40
Ethnews.Com Neutral - Opera Adds Cryptocurrency Wallet To Its Android Browser read more.
12/14/2018 / 23:00:38
Cryptoglobe Neutral - Church's Chicken in Venezuela Now Accepts Dash Payments read more.
12/14/2018 / 23:00:00
Ccn Neutral - Cameroon Separatists Create Cryptocurrency Called AmbaCoin read more.
12/14/2018 / 22:58:32
Cointelegraph Neutral - Bitcoin to Be Worth ‘Great Deal More’ in Three Years, Circle Co-Founder Says read more.
12/14/2018 / 22:48:00
Bitcoin.Com Neutral - Bahrain’s Central Bank Issues Draft Crypto Regulations read more.
12/14/2018 / 22:30:17
Cryptoglobe Neutral - Coinbase Launches Free Instant Withdrawals to PayPal for U.S. Customers read more.
12/14/2018 / 22:28:30
Themerkle Neutral - Bitcoin Sinks Below $3,200 as Teenage Bitcoin Millionaire Says Its Dead read more.
12/14/2018 / 22:28:08
Ccn Neutral - Billion-Dollar Crypto Fund Says 25% of ICOs in its Fund Could be Securities read more.
12/14/2018 / 22:15:17
Cryptoinsider Neutral - Daily Crypto Roundup 12/14/2018 read more.
12/14/2018 / 22:04:40
Cryptoglobe Neutral - Number of Crypto Users Doubles to Over 35 Million: Cambridge Study read more.
12/14/2018 / 22:00:00
Ethnews.Com Neutral - EU Blockchain Observatory: Digital Identity Is ‘Fundamental Building Block’ For Blockchain’s Potential read more.
12/14/2018 / 21:40:30
Coindesk Neutral - Coinbase Revamps PayPal Withdrawals for US Crypto Users read more.
12/14/2018 / 21:40:24
Cointelegraph Neutral - Swiss Federal Council: Existing Financial Law Should Be Adjusted to Blockchain Industry read more.
12/14/2018 / 21:36:00
Newsbtc Neutral - Teen Bitcoin Millionaire: “Bitcoin is Pretty Much Dead” read more.
12/14/2018 / 21:30:57
Ethnews.Com Neutral - Despite Downsizing, Status Maintains Commitment To Building Core Ethereum Infrastructure read more.
12/14/2018 / 21:19:36
Ethnews.Com Neutral - BBVA Issues Porsche Corporate Loan Via Blockchain read more.
12/14/2018 / 21:11:59
Ccn Neutral - Bitcoin Price Will Soar over Next Three Years: Circle CEO Jeremy Allaire read more.
12/14/2018 / 21:10:39
Bitcoinist Neutral - 25% of Pantera Capital ICO Projects May Have to Refund Investors read more.
12/14/2018 / 21:00:13
Cointelegraph Neutral - European Parliament Calls for Increased Blockchain Adoption in Trade read more.
12/14/2018 / 20:58:00
Bitcoin.Com Neutral - SEC Chair ‘Optimistic’ DLT and Crypto Will Drive Investment Opportunities read more.
12/14/2018 / 20:55:37
Ethnews.Com Neutral - European Parliament Looks To Blockchain Adoption In Trade Policies read more.
12/14/2018 / 20:16:49
Cointelegraph Neutral - #Bitcoin, Ripple, Ethereum, Stellar, EOS, Bitcoin Cash, Litecoin, Bitcoin SV, TRON, Cardano: Price Analysis, Dec. 14 read more.
12/14/2018 / 20:05:00
Ccn Neutral - Robinhood Didn’t Consult Regulators on New Checking & Savings Account Products read more.
12/14/2018 / 20:03:47
Cryptoglobe Neutral - Crypto Exchange Binance Expands Its Startup Incubator to New Cities read more.
12/14/2018 / 20:00:46
Newsbtc Neutral - Bakkt and Intercontinental Exchange CEOs Weigh in About Bakkt read more.
12/14/2018 / 20:00:42
Themerkle Neutral - Dogecoin Price Remains at $0.002 as Market Cap top 20 Looms read more.
12/14/2018 / 19:49:38
Negative
4.4%
Neutral
94.4%
Positive
1.0%
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.