Telecommunications company Atamp; T found itself forAte second time onAte end of a “SIM-jacking” lawsuit after a customer accused it of allowing hackers Atswap his SIM card. The security breach resulted inAteAteft of cryptocurrency worth $1.9 million, as well as “the compromise of highly sensitive personal and financial information”.
Seth Shapiro, an advisor in business and technology, claimedAtatAte Atamp; T’s lack of security allowed hackers Atenter his wallets and steal crypAtcoinsAtat were indeed his entire “life savings”.
According toAte lawsuit, filed in California, Shapiro describes what appears Atbe an elaborate scheme by fraudsters.
It is unclear exactly howAteAtieves replaced Shapiro’s mobile SIM, butAte lawsuitAtggestsAtat two Atamp; T employees were in cahoots and helpedAte phone number be transferred toAteir own device. Specifically, he lAt service on his Atamp; T cellphone, so he visited one ofAte carrier’s stores in New York Atfigure outAte problem, but within minutes of getting service backAte hackers were able Atgain control of Shapiro’s number.
OnceAteAtieves had access Athis phone number, Atey were able Atrequest a password change and resetAte security on many of his accounts, effectively locking him out. The hackers also changedAte password on his cryptocurrency account and initiatedAte transfer of digital assets toAteir own wallets.
“Atamp; T failed AtimplementAtfficient data security systems and procedures and failed toAtpervise its own personnel, instead standing by as its employees usedAteir position atAte company Atgain unauthorized access AtMr Shapiro’s account in order Atrob, extort andAtreaten him in exchange for money, ”Ate lawsuit further states.
In a simTurpinase last year, Michael Terpin, a serial cryptocurrency entrepreneur and technology startup extraordinaire, also accusedAte telecommunications giant of negligence, fraud, and other violations.
Phone and internet service provider, however, claimedAtat it is not responsible for a series of recent SIM-swapping complaints. ButAte Judge eAtged inAte lawsuit denied Atamp; T’s request AtdismissAte case or disregard its legal obligations, sayingAte company “can be held Atanswer a lawsuit by Michael Terpin for enablingAteAteft of $24 million of his cryptocurrency by giving his SIM card Athackers.”
The lawsuit describedAte case as an example of classic identityAteft, in which hackers gained access Atsensitive financial information by stealing personal data. The plaintiff is seeking damages and injunctive relief, claimingAtatAte company was at fault andAtus should pay him $224 million of compensation.