Teen Sued for $24M Theft in SIM Swap Scam

Cryptocurrency investor Michael Terpin sued a recent high school graduate for allegedly stealing $24 million worth of his digital assets in a sophisticated SIM swap scam.

Terpin claimed that the thief exploited a vulnerability in the two-factor authentication (2FA) system protecting his cryptocurrency wallet. The lawsuit also sees Terpin seeking an additional $45 million in damages from telecommunications giant AT&T, accusing the company of negligence in failing to prevent the attack.

Terpin, a prominent figure in the cryptocurrency world, alleged that the teenager successfully bypassed his 2FA protections by taking control of his SIM card.

Blockchain investigator ZachXBT expressed his views about the Terpin incident as well.

What is a SIM Swap?

A SIM swap is a type of identity theft where an attacker gains control of a person’s mobile phone number by transferring it to a SIM card they control. This allows them to intercept calls and messages intended for them, often bypassing security measures like two-factor authentication (2FA) and two-step verification, especially those relying on SMS or phone calls for verification.

SIM swaps are typically carried out remotely. Attackers contact the mobile service provider, either by phone or in person, and impersonate a person to convince the provider to switch their number to their SIM card. They may have gathered personal information through previous hacks or, in some cases, may have inside help from an employee within the company.

Once they have control of the number, attackers can access sensitive information, including passwords, bank accounts, and cryptocurrency wallets. They can also hijack apps on phone, such as social media and financial apps. If you have a popular social media account, the attacker might use it to post malicious links, such as fake cryptocurrency or NFT airdrop scams, targeting unsuspecting followers.

SIM swap attacks often exploit publicly available information or social engineering tactics, as seen in high-profile cases like that of Ethereum co-founder Vitalik Buterin.

Apart from this, prominent crypto enthusiast and NFT creator Cole (@ColeTherium) fell victim to a SIM swap attack last year, resulting in the loss of his X account.

After the breach, his X account was hacked, prompting a warning from users: “Be careful not to click on any links; there is NO $IGLOO! #scam.”

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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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