Cryptocurrency hacking is one of the menaces affecting the budding of cryptocurrency, as there has been a series of cryptocurrency thefts of recent. Though cases of cryptocurrency hacking through sim swaps aren’t prominent yet; however many have fallen victim to the evil machination by cyberattackers.
The Sim Swap Cryptocurrency Hacking Technique
Thinking of a better way to store your cryptocurrency assets seems to be elusive of recent in the cryptocurrency community, as every measure appears to have a weakness.
Hackers can fully gain total control of the user’s phone digits, especially the one connected to their cryptocurrency accounts on the web. This grants them access into these account by a simple password change since they are now able to pose as the real owners of the accounts. By so doing, cyberattackers can steal funds from online wallets or sometimes gain access to private keys stored on emails.
This method of hacking is not possible without an accomplice from the telecommunications provider firm, who assists in the transference of a phone number to the sim card in possession of the hacker.
The lucrative feature of cryptocurrency to its holders has made hackers and telecoms mole to collude in hacking cryptocurrency owners.
The Victims of Sim Swap Cryptocurrency Hacking
Michael Terpin, who in the past has fallen a victim, is a Puerto Rico-based entrepreneur and CEO of TransformGroup. Reports show he’s lost $24 million worth of cryptocurrencies as a result of two hacks that occurred over the course of seven months.
This unfortunate situation he described as “what AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.” His phone number was swapped with a hacker sim card twice, with the help of an agent of his telecommunications service provider, AT&T.
On June 13th, 2017, his phone suddenly switch off, and during this period hackers could gain access to his personal information, including calls and text messages, which they were able to use in gaining access to his cryptocurrency account which the number served as a means of verification. AT&T was able to cut the access of the hacker after a substantial worth of cryptocurrency had been carted away.
On Saturday, Jan. 7, 2018, same scenario of June 13 took place with the substantial amount of cryptocurrency stolen again. The victim is seeking $200 million in punitive damages and $24 million in compensation from the telecommunications corporation for the hack.
A Lasting Solution
The challenge with cryptocurrencies is users or holders are solely responsible for the security of their assets. Holding cryptocurrencies in devices which are not accessible via the internet are great ways to ensure that cryptocurrencies are safe to a certain extent.