AT&T is sued by crypto investor, whose SIM card was swapped, resulting in loss of $24 million. This investor, Michael Terpin, filed a lawsuit against AT&T, demanding $24 million plus additional $200 million as a compensation.
Finally, someone has stood up to face this problem. For many years, these communications companies are careless with the security of their customers and their funds. As long as phone numbers are being used for identification, these SIM swap frauds flourish. Every year, many people get scammed with this method of social engineering, losing their phone numbers and money. Does it bother any communications provider? Of course not. They happily give scammers the opportunity to get any number, and after that, it's not their problem. No complicated confirmations, verifications, just call the operator, say that you want to swap your SIM, and you get it.
Such carelessness should be punished somehow, as it seems that the only thing that would force big communications companies to change their attitude is to aim at their own wallet. If AT&T loses this case, it would be obliged to pay these $224 million, and it would make them think 'What should we do to avoid these cases in the future'. If they lose, this may give a green light to more lawsuits from people who lost money to fraudsters thanks to AT&T. And then the policies regarding SIM swap procedures may be revised and become more security-oriented.
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