Defending Against SIM Card Swapping Scams

In today’s technology-driven world, it is no surprise that most of us are attached to our smartphones. Essentially, smartphones are minicomputers and are capable of doing multi-function tasks. This includes; sending emails, attending a meeting virtually, paying bills, buying gifts, watching our favorite shows, or even online banking. All this technology is stored on the phone’s SIM card, which can contain retrievable data about apps, passwords, and personal information.

Despite the amazing benefits that smartphones bring, they, too, can leave us in the depths of despair. Imagine that you have picked up your phone and nothing worked; Text messages, calls, and emails did not respond, and all your apps have locked you out.  Most of us would feel lost, wondering what has happened. If you find yourself experiencing a total block-out from your smartphone, there is a high possibility that you have been scammed.

This scam is called Sim Swapping, and here is how it works. It starts with fraudsters gathering personal information or PII. They search online in open forums such as social media or any other place they can get information on members. They may call and act like they are from a company selling a product or service. The fraudster could ask you which cell phone company you use. They will pretend to survey customers on their experience. They pretend to be an official with some agency verifying information. Unfortunately, these questions and tactics are only meant to lure victims into willingly handing over their personal information.   

Once they get enough vital information on a member, fraudsters will call your phone carrier pretending to be you. The fraudster will pretend to be a member who has lost a phone. The fraudster then requests a new SIM card to install on a new phone under their control. Once convinced, the phone company will send the fraudster a new SIM Card with all the information contained from their phone to their address. Once the SIM card is received by the fraudster and installed into a new phone, they have complete control over any applications. The fraudster now has access to cloud storage, social media, email, and bank accounts.  

While the scam is not new, cases have been increasing. The FBI reported victim losses of $68 million to SIM-card-based scams in 2021, compared to just $12 million in the three-year period between 2018 and 2020. Reports also indicate that most SIM swaps begin with a phishing email where fraudsters hijack the victim’s email, compromising personal information. Here are some tips on how to protect yourself from Sim Swaps and what to do if you believe you are a victim.

How to protect yourself from Sim Swapping:

• Set a special pin with your mobile carrier for any changes to your account.
• Always use passwords that are complex; use special characters, combinations of numbers and letters, lower and upper case, and at least 12-14 characters.
• Change passwords often.
• Use strong multi-factor authentication methods such as biometrics, physical security tokens, or standalone authentication applications.
• Limit posting on social media.
• Limit personal information online, such as name, address, phone number, and date of birth.
• Set privacy profiles when using social media to strictly prohibit your personal information.
• Never use personal information in your tag name, user name, or profile, such as a date of birth.
• Avoid posting information online about your financial assets (including cryptocurrency), especially on any social media websites and forums.
• Be cognizant of unexplained service lapses with your mobile carrier.

If you have lost service on a mobile carrier, take these steps immediately, as early notification is key:

• Contact your mobile carrier immediately.
• This may require an in-person visit.
• Contact any financial institution immediately to notify them of a possible SIM swap.
• Report activity to the FBI's Internet Crime Complaint Center at www.ic3.gov.

If you have any questions about Sim Card Swapping, contact Coastal’s Fraud Department at 919-420-8211. 

FBI.gov - Federal Fact Friday: SIM Card Swapping
FBI.gov - Dangers of SIM Swapping