Crypto influencers and key individuals in the crypto community are increasingly becoming targets of SIM swap attacks as the holiday shopping season approaches, resulting in compromised accounts and drained crypto wallets.
High-profile accounts like the Manifold Trading firm and its founding partner Jae Chung recently fell victim to SIM swap attacks, according to Chung. Compromised accounts then posted malicious links to crypto drainers, resulting in some users having their wallets drained.
Founder of decentralized media platform “Rug Radio”, Farokh, also experienced a SIM swap although he did not associate his phone number with his Twitter account. He cautioned followers to distrust any communication.
Losses Worth Millions
From May to August, over 54 members of the crypto community lost a total of $13.3 million to SIM swap attacks, according to blockchain investigator ZachXBT. In October, users of the social finance platform Friend.tech also fell victim to SIM swap scams.
How SIM Swap Attacks Work
SIM swap involves hackers taking control of a victim’s phone number and, consequently, access to accounts secured by two-factor authentication via SMS. ZachXBT suggests using authenticator apps or security keys instead of phone numbers for multi-factor authentication due to vulnerabilities in carrier services.
User borovik.eth advised against using standard carriers like Verizon or AT&T due to susceptibility to social engineering attacks.