Phone Number Theft: A New Nightmare in Cybercrime
One Monday morning in May, I woke up to find my phone out of service. Unable to make calls or texts, I used my home Wi-Fi to check my email. To my horror, I discovered a notification about a $20,000 transfer from my credit card to an unfamiliar Discover Bank account. Though I managed to stop that transfer and report the cell phone issues, my nightmare had just begun. Days later, someone transferred $19,000 from my credit card to the same account.
I was a victim of port-out hijacking, also known as SIM-swapping. This type of identity theft goes beyond hacking into a bank account. Thieves take over your phone number, receiving calls and texts meant for you. This undermines two-factor authentication, making it easier for them to access your accounts.
Despite being tech-savvy and following online safety measures, I still fell victim. Experts warn that these scams are increasing in frequency and sophistication. From 2018 to 2021, the FBI received over 1,600 SIM-swapping complaints, resulting in more than $68 million in losses. Complaints to the FCC doubled from 275 in 2020 to 550 in 2023.
Rachel Tobac, CEO of SocialProof Security, argues that two-factor authentication is outdated, as personal information like phone numbers and social security numbers are easily accessible. This was highlighted when AT&T admitted to a security breach involving nearly all its customers’ data.
The FCC recently introduced rules requiring wireless providers to authenticate customers before transferring phone numbers. These measures, including government ID and voice verification, aim to protect consumers. However, implementation has been delayed, giving companies more time to comply.
If these rules had been in place, my phone number might have been harder to steal. Ohio State University Professor Amy Schmitz emphasizes that while the new FCC rules help, consumers must still be proactive in protecting themselves.
It took ten days to recover my phone number from Cricket Wireless, and during that time, the scammer accessed my bank account multiple times, successfully transferring $19,000. Thankfully, Bank of America reversed the transaction after I visited a branch in person.
Cricket Wireless acknowledged the issue, stating their commitment to preventing fraud. AT&T confirmed that all providers are working to implement the FCC’s new rules.
This experience taught me a hard lesson about the vulnerability of our personal information. Despite all precautions, I was still exposed to cybercrime.
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