Category Archives: AT&T

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Sim Swapping Victims Sue T-Mobile and AT&T

The Silver Miller law firm, which has been on the forefront of cryptocurrency lawsuits including the class action lawsuit against YouTube regarding BitConnect, is suing the major cell service providers AT&T and T-Mobile over their roles in facilitating sim swapping.

In August 2018 it came to light that a crime ring led by Joel Ortiz had stolen USD 5 million in cryptocurrency from over 40 victims. BitcoinNews correctly speculated at the time that the mobile carriers may be liable for the damages since ultimately they were the ones who handed over control of victim’s sim cards to the hackers.

Silver Miller asserts that T-Mobile and AT&T had holes in their security protocols and did not properly train employees, resulting in employees giving control of sim cards to thieves. Once the hackers had control over a sim card they could access financial information, allowing them to drain cryptocurrency wallets, as well as credit cards and bank accounts.

One of the clients Silver Miller is representing lost USD 621,000, and that was after AT&T supposedly increased account security after an attempted hack on the client. There are 2 clients using T-Mobile who lost USD 400,000 and USD 250,000 respectively.

Essentially, a hacker can plea for assistance with customer support, tricking the customer support into not following proper identification protocols, resulting in the loss of a client’s life savings. Silver Miller is considering additional sim swapping lawsuits against Verizon, Sprint PCS, Cricket Wireless, Boost Mobile, Virgin Mobile, and Metro PCS. The goal is to restore the client’s life savings and improve the policies of cell phone carriers to prevent further sim swapping.

It could be argued that cryptocurrency thefts via sim swapping would not happen if the victims properly stored their cryptocurrency. Bitcoin private keys, especially for large amounts of money, should only be stored in core wallets and not on mobile wallets.

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Crypto Investor Sues AT&T for $224M After Phone Hack Losses

A cryptocurrency investor in the US has filed a lawsuit against his cell phone service provider AT&T on the grounds of gross security negligence that lead to his personal loss of USD 24 million in crypto.

The plaintiff, California resident Michael Terpin, filed a 69-page complaint with the US District Court in Los Angeles on Wednesday alleging that AT&T not only violated its statutory duties and Privacy Policy commitments but went so far as to willingly cooperate with the phone hacker. Terpin claimed that he was victim to digital identity theft two times in seven months when his digital assets were taken via his cell phone number.

Suspicious circumstances were cited by Terpin regarding the actions of at least one AT&T employee. He alleged that ”insider cooperation with the hacker” took place after a store employee offered out his phone number without verifying the person’s identity or requesting any of his private information. Terpin’s complaint details that his number was then used to break into his cryptocurrency accounts and compares the incident to a hotel providing a thief with a fake ID the key to a room and the safe to steal from the rightful owner.

The legal complaint seeks from AT&T USD 200 million in punitive damage and USD 24 million in compensatory damages.

AT&T responded to the accusations, providing CNBC with a statement reading: “We dispute these allegations and look forward to presenting our case in court.”

Terpin may well have been considered a profitable target by potential thieves due to his work in the cryptocurrency industry. In 2013, he co-founded Bitcoin angel investor group BitAngels, as well as the BitAngels/Dapps Fund.

The cryptocurrency community has recently placed a significant focus on increased security as imperative for increasing adoption levels and seeing market prices recover from a relatively poor performance this year, although in this instance it appears to be only AT&T at fault.

 

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The post Crypto Investor Sues AT&T for $224M After Phone Hack Losses appeared first on BitcoinNews.com.