Articles Posted in Cyberattack

Stoltmann Law Offices, P.C has represented SIM-Swap hacking victims and continues to investigate ongoing claims related to this sordid scam impacting many people.  A story reported by CNN last week went into detail about a specific victim in San Francisco. According to the story, Robert Ross had over $2 million stolen from him when his phone was hacked through a process called “SIM-Swapping” or “SIM-Jacking.” Like so many of these victims, Mr. Ross was a crypto-currency investor and those were the funds that were stolen from him.  Mr. Ross is suing his cellular provider, AT&T, for its role in enabling the fraudsters who stolen millions from him. The outcome of that lawsuit is far from certain. However, Stoltmann Law Offices continues to monitor updates on these SIM-Swapping scams and are fully engaged in prosecuting cases on behalf of victims against their cellular providers.

These cases are not highly technical or difficult to grasp once you understand some of the basics. First, its important to understand one bit of technical jargon.  What is a “SIM” card? A “SIM Card” is a memory chip contained inside a mobile phone which carries a unique identification number specific to the owner, stores the owner’s personal data, and disables the mobile phone if removed. SIM Swapping is a means of infiltrating someone’s cellular world by taking control of the user’s SIM Card and have it activated in a phone controlled by the scammer, without stealing the phone or breaking it open to actually remove the SIM card. Here, the infiltration is virtual and once the scammer has the customer’s SIM card activated in the phone in his possession, it can then be used to gain access to emails, brokerage accounts, bank accounts, and cryptocurrency virtual wallets.

The scheme is so incendiary because it takes advantage of two-step authentication – something we’ve all been told for years to have set up to PROTECT us from hackers.  Here’s how it works: The crook convinces AT&T (or Verizon, Sprint, or T-Mobile) that he is the account owner. The crook accomplishes this typically by making up a story why the phone number needs to be transferred to a new phone. In one case the imposter simply called AT&T Customer Service, told them he dropped his phone in a lake, and that he had a new phone that needed to be activated. Instead of determining whether the phone that was allegedly at the bottom of a lake was still active and in-use, the AT&T representative accepted the unverified representations of the imposter and activated the “new” phone in the hands of the scam artist. The customer’s actual phone was deactivated and by the time it was realized, the fraudster gained access to the customer’s email and then virtual wallet. The CNN story about what happened to Mr. Ross – noticing his cell phone had no service, or “zero bars” for no apparent reason – is the first indication your SIM has been compromised.

Crypto related currencies have been called a lot of things. The next big thing. A bright, shiny object.  When top financial regulators say they aren’t comfortable that they haven’t learned about the full dangers of crypto, you’re wise to be wary too. Investment promoters often try to convince hungry investors they can turn hot topics of the day from oil and gas fracking to self-driving cars into wealth.

But often the only wealth that surfaces from their drumbeat is an abundant pile of victims.  Crypto crooks stole over $4 billion from investors this year, the blockchain consulting firm CipherTrace warned in a new study.  Even the sophisticated are vulnerable and increasingly so.

“Exchanges and users are facing a greater sophistication in the tactics, techniques and procedures (TTPs) cybercriminals are using to target the cryptocurrency space. In the case of exchange robberies, hackers have developed advanced methods to overcome even the current “best practice” security in place at the more vigilant exchanges,” CipherTrace cautioned.

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