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Security Compromises Remind Cryptocurrency Users to Remain Vigilant

November 23, 2018

Court Documents reveal that a few Californian residents had their phones hacked through the “SIM-swapping” technique, which enabled the hacker to steal cryptocurrency from their online exchange wallets.

The main plaintiff claims to have lost the equivalent of $1 million USD to the hacker, of which only $300,000 USD was recovered from the defendant’s hard drive (the article did not detail how much of the loss was due to exchange price fluctuations). The theft was made possible through “SIM-swapping” where the hacker uses stolen personal information, such as a birthday or social security number, to get the wireless phone service provider to switch the phone number from the rightful owner’s device to the hacker’s device. The hacker then breaks into the victim’s online exchange account and utilizes the the stolen number to pass through the two-factor authentication that is meant to be a safeguard.

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