Discover the alarming trend of bank fraud where accounts are compromised through the use of mobile...
Learn about the dangers of cell phone SIM card swaps and how to protect yourself from online threats.
Understanding Cell Phone SIM Card Swaps
WASHINGTON (7News) — 7News is asking a security question that deals with your cell phone. How did a Maryland woman lose $17,000 even though she had two-factor authentication on all her accounts?
We all know criminals have multiple ways to steal your identity, but 7News is sending out a warning. SIM card swapping almost cost Sharon Hussey of Bethesda, Md. thousands.
"It was absolutely stunning. My heart dropped to the floor,” said Sharon Hussey.
It all started when Hussey got an email thanking her for the purchase of a new phone at Verizon. Minutes later her contact information at Bank of America had changed.
The problem? She didn't do either transaction and had two-factor authentication on her accounts.
"And the bottom just kind of dropped out,” added Hussey.
She called Bank of America, but her cell phone was no longer active. An online attempt required a verification code her phone couldn't receive.
Within minutes, her $17,000 was gone.
"Initially, I didn't realize how big of a deal it was. I thought I had handled it on the first day by calling the bank, calling Verizon. Figuring things out,” said Hussey.
Hussey told 7News that Verizon said someone in California walked into one of its stores and purchased a new phone along with a new SIM card and used Hussey's current phone number to activate the new phone.
When the new phone was turned on Hussey's phone went dead.
Hussey used a landline to contact Bank of America, but it was too late. Her $17,000 was gone.
"And I have two-factor identification which ended up biting me in the face when it all came down to it. That was the thing that completely hijacked everything. They had complete control of my phone and there was nothing I could do about it,” said Hussey.
SIM card swapping has been around for the past four years, but security experts told 7News that the scale of this type of scam has recently skyrocketed.
"In 2021, roughly six times as many dollars were stolen through this as the years before,” said Alex Quilici, CEO of YouMail.
Quilici said the scam is simple.
"The bad guys convince the telephone company that they have the SIM for your phone number and the minute the phone company does the swap they are in control of your number,” said Quilici.
Scammers then use two-factor authentication through your cell phone to access your accounts.
"If you've been doing two-factor authentication everywhere to your mobile phone number, if someone else gets that mobile phone number they can authenticate as if they are you,” said Quilici.
Over the next three months, Bank of America denied her claim saying it can't be honored.
Eventually, the bank reversed its initial decision and refunded the $17,000.
Bank of America told 7News in an email:
"We take identity theft very seriously. We are always working to improve the experience knowing that resolving identity theft issues is a complicated process.
For future reference/stories, here’s the Zelle scam avoidance information I mentioned: Pay It Safe | Zelle (zellepay.com).
Naomi R. Patton
Media Relations, Bank of America"
Verizon said in an email:
"Verizon values the privacy and security of our customers. Whenever a case of potential fraud is brought to our attention, we work quickly to investigate and resolve the matter. Due to customer privacy laws, we cannot share specific information about this particular investigation.
You can learn more about sim swapping and other types of social engineering tactics employed by fraudsters here (plus tips on what folks can do to protect themselves): https://www.verizon.com/about/account-security/sim-swapping
Thanks,
Steve Van Dinter
Director, Local Area Communications"
Here are more ways you can better protect yourself from SIM card swapping.
"The number one thing is to make sure you get a PIN or a number porting PIN with your carrier. That requires a special code that hopefully only you have that needs to be given to the carrier before they do the SIM swap,” said Quilici.
