Hackers have stolen the famous investor $24 million in bitcoin through the substitution of the SIM card

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Hackers have stolen the famous investor $24 million in bitcoin through the substitution of the SIM card

American captainvalor Michael Turpin filed a lawsuit against a telecommunications conglomerate AT&T for negligence, which resulted in the loss of nearly $24 million in the cryptocurrency. This writes Ethnews. In the complaint submitted to the court August 15, Turpin says that AT&T are unable to enforce their own safety rules in the process of replacing a SIM card:

AT&T does nothing to protect nearly 140 million of its customers from fraud with SIM cards, so the blame for these attacks lies squarely on the company. She was very aware of the fact that its customers may become victims of this type of fraud and that its security measures ineffective.

In comments to Reuters an AT&T representative stated that “the company disputes the allegations and looks forward to the consideration of the case in court.”

Turpin seeks compensation in the amount of $24 million and more than $200 million penalty, to “pay attention” manual AT&T the need to create a reasonable program to protect customers and to prevent the complicity of company employees in the fraud.

In his complaint, Turpin, business angel, the founder of investment group of Bit Angels, says that for seven months he became the victim of two break-ins security system AT&T to replace the SIM card. According to him, the company knew about the vulnerability and its employees “cooperate with the hackers.”

Turpin says that after the first break AT&T has taken additional precautions, but they were insufficient. The phone number was compromised by “an insider, working with the hacker”. The victim assumes that the hacker without revealing the identity or password required, got his phone number from an employee AT&t Using the number, the attacker was able to access online wallets and steal the cryptocurrency almost $24 million.

According to the Federal trade Commission, the substitution of telephone numbers has become one of the popular U.S. forms of identity theft. The Commission describes this type of fraud:

The thief impersonating the victim and calling the mobile operator, reporting that his phone was damaged or stolen, therefore, it is necessary to block the old and activate the new SIM card. Then the thieves can access your Bank accounts, answering phone calls and text messages to confirm transactions.

In case of changing the SIM card of a mobile operator is obliged to identify the subscriber, but, according to Turpin, this is not happening always. In addition, thieves may be submitted by employees to obtain information needed to replace the SIM card. This type of fraud poses a threat to mobile banking, since a very large share of customers accounts tied to phone numbers.

Recall that this is not the first occasion when using the SIM— card attackers kidnapped a large sum in bitcoin. In July, 20— year-old student Joel Ortiz was arrested in California for stealing digital currency for $5 million.

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