• SIM swap attacks are a rising concern, giving hackers unauthorized access and causing financial losses
• SIM Swap hacks are when cybercriminals take control of a victim’s phone number, granting them unauthorized access to their accounts
• FBI reported a 400% increase in SIM swap complaints, urging immediate attention
• To prevent SIM swap attacks, use secure 2FA methods and protect personal data

SIM swap hacks, a type of identity theft, have become a growing concern in recent years. In this form of attack, cybercriminals take control of a victim’s phone number, which grants them unauthorized access to various accounts, including bank accounts, credit cards, and cryptocurrency holdings.

In 2021, the United States Federal Bureau of Investigation (FBI) received an alarming number of complaints related to SIM swapping, totalling over 1,600. These complaints reported losses exceeding $68 million, representing a staggering 400% increase compared to the previous three years. This sharp rise in incidents indicates that SIM swapping is a mounting threat that needs immediate attention.

SlowMist’s chief information security officer, known as “23pds,” believes that while SIM swapping is not yet widespread, it has the potential to become even more prevalent in the near future. He attributes this possible escalation to the growing popularity of Web3, which attracts more individuals to the cryptocurrency industry. As more people get involved in this space, the likelihood of SIM swapping attacks increases due to the relatively lower technical expertise required by hackers.

READ: Poly Network hackers ‘create’ and sell $94.51 billion worth of tokens

Several cases in the cryptocurrency realm illustrate the seriousness of SIM swap attacks. In October 2021, leading cryptocurrency exchange Coinbase disclosed a breach in their two-factor authentication (2FA) system, resulting in hackers stealing cryptocurrencies from approximately 6,000 customers. Additionally, British hacker Joseph O’Connor faced legal consequences in 2019 for perpetrating multiple SIM swap hacks, which led to the theft of around $800,000 worth of cryptocurrency.

The alarming rise in SIM swap hacks serves as a wake-up call for individuals and businesses alike to take proactive measures in safeguarding their personal and financial information. Utilizing strong and unique passwords, enabling multi-factor authentication (MFA), and staying vigilant against phishing attempts are some of the key steps to protect against such attacks.

Cryptocurrency holders, in particular, should exercise extra caution, given the appeal of these assets to cyber criminals. Adopting security best practices, such as using hardware wallets and keeping private keys offline, can help prevent unauthorized access to digital assets.

Moreover, industry players and regulatory bodies must work collaboratively to implement stricter security standards and raise awareness about SIM swapping and other cybersecurity threats. By staying ahead of evolving hacking techniques and reinforcing preventive measures, the global community can collectively mitigate the risks posed by SIM swap attacks and protect users from financial losses and identity theft.

How to prevent SIM Swap hacks

Given the rise of SIM swap attacks, it is essential for users to be vigilant in safeguarding their identity to thwart such hacking attempts.

The primary defence against SIM swap hacks involves avoiding reliance on SIM card-based methods for 2FA verification, such as SMS. Instead, it is advisable to opt for more secure alternatives like Google Authenticator or Authy, as pointed out by Hacken’s Budorin.

Additionally, SlowMist’s 23pds suggested implementing further protective measures like multifactor authentication and reinforcing account verification with additional passwords. Establishing strong PINs or passwords for SIM cards and mobile phone accounts is strongly recommended.

Protecting personal data, including name, address, phone number, and date of birth, is another effective way to prevent SIM swapping. SlowMist’s 23pds emphasized the importance of regularly monitoring online accounts for any unusual activity.

In Kenya, for example, Safaricom which is the largest telecommunication provider has introduced “My voice, my password” which is a 2FA method requiring users to use their voice as their password whenever they want any service related to their SIM cards.

Platforms themselves also play a crucial role in promoting safe 2FA practices. According to CertiK’s Brooks, firms should consider implementing additional verification processes before allowing changes to account information. Moreover, educating users about the risks associated with SIM swapping is essential to enhance overall security.