In May, a finance journalist discovered their phone out of service, noticing a $20,000 transfer from their credit card to an unknown bank account via email. A few days later, another $19,000 was fraudulently transferred. This scam, known as port-out hijacking or SIM-swapping, involves thieves taking over a victim’s phone number to intercept calls and texts, bypassing security measures like two-factor authentication. Despite following online safety protocols, the journalist fell victim to this sophisticated fraud.
This type of identity theft, on the rise according to FBI reports showing a 400% increase in SIM-swapping complaints from 2018 to 2021, is often underreported. Security experts highlight the inadequacy of two-factor authentication, citing the ease of obtaining personal information from various online sources. A recent data breach by AT&T, where customer data was accessed, further exposes vulnerabilities to SIM-swapping attacks.
Consumers are advised to pressure companies for enhanced data protection and be vigilant about password security. The FCC introduced new rules to combat SIM-swapping, requiring wireless providers to adopt secure customer authentication methods. While these rules aim to safeguard against such scams, their full implementation has been delayed for further review.
Ohio State University experts emphasize the importance of consumer awareness and action in protecting against SIM-swapping. Despite taking measures to secure accounts, the journalist faced challenges in recovering their stolen funds and phone number. Cooperation from institutions like Bank of America and Cricket Wireless was crucial in reversing the fraudulent transactions and restoring account access.
The telecom industry commits to implementing FCC regulations to enhance customer protection against port-out hijacking. The journalist’s experience serves as a cautionary tale about the risks of losing control over personal information and highlights the ongoing efforts to prevent and address SIM-swapping crimes.
