The Federal Bureau of Investigation (FBI) issued an announcement to inform mobile carriers and the public of the increasing use of Subscriber Identity Module (SIM) swapping by criminals to steal money. From January 2018 to December 2020, the FBI Internet Crime Complaint Center (IC3) received 320 complaints related to SIM swapping incidents with adjusted losses of about $12 million. In 2021, IC3 received 1,611 SIM swapping complaints with adjusted losses of more than $68 million.
SIM swapping is a malicious technique where cyber criminals target mobile carriers to gain access to victims’ bank accounts and virtual currency accounts. Criminal actors conduct SIM swap schemes using these techniques:
Social engineering, insider threat, or phishing techniques.
- Social engineering: Cyber criminals impersonate a victim to trick the mobile carrier into switching the victim’s mobile number to a SIM card in the criminal’s possession
- Insider Threat: Cyber criminals pay off a mobile carrier employee to switch a victim’s mobile number to a SIM card in the criminal’s possession.
- Phishing: Cyber criminals deceive mobile carrier employees into downloading malware used to hack the mobile carrier systems that handle SIM swaps.
“Once the SIM is swapped, the victim’s calls, texts, and other data are diverted to the criminal’s device. This access allows criminals to send ‘Forgot Password’ or ‘Account Recovery’ requests to the victim’s email and other online accounts associated with the victim’s mobile telephone number. Using SMS-based two-factor authentication, mobile application providers send a link or one-time passcode via text to the victim’s number, now owned by the criminal, to access accounts. The criminal uses the codes to login and reset passwords, gaining control of online accounts associated with the victim’s phone profile.”
The FBI recommends individuals take the following precautions:
- Do not advertise information about financial assets, including ownership or investment of cryptocurrency, on social media websites and forums.
- Do not provide your mobile number account information over the phone to representatives that request your account password or pin. Verify the call by dialing the customer service line of your mobile carrier.
- Avoid posting personal information online, such as mobile phone number, address, or other personal identifying information.
- Use a variation of unique passwords to access online accounts.
- Be aware of any changes in SMS-based connectivity.
- Use strong multi-factor authentication methods such as biometrics, physical security tokens, or standalone authentication applications to access online accounts.
- Do not store passwords, usernames, or other information for easy login on mobile device applications.
Read more about it here.