Posted 1 year ago | by Ben Armstrong

Cryptocurrency Investor Reportedly Lost $24 Million in BTC in SIM Swap Attack

The Wall Street reorted that one crypto investor lost $24 million USD worth of bitcoin worth when he fell victim to a new kind of hack known as SIM swapping. Cryptos give people the ability to directly own cryptos, but there are some issues when it comes to keeping your tokens safe.

SIM swaps are stealing an individual's phone number and using it to gain access to numerous other accounts. Once a hacker gets into a user's email account, they can scour for proof of asset holdings and subsequently target trading apps, bank accounts, and crypto-wallets.

According to WSJ, by taking control of the victim’s phone number and using Google's "Forgot password?", feature to enter his email, thieves stole about 1,500 bitcoins. Michael Terpin was a victim on January 7, 2018, after the day that bitcoin reached its record high price.

Beware of Hacks

Once bad actors gained access to multiple personal accounts, the thieves hacked Terpin's crypto wallet, stole the valuable tokens, and quickly sold them. This was not the first time that Terpin got an attack, he had been hacked in the same way seven months earlier, but didn't lose any assets then.

According to WSJ, after the first hack, the crypto investor added additional security measures to his AT&T account, including a six-digit PIN required for any future changes. He also changed the text-message authentication for Google's authentication service that he had been using.

"On a scale of 1 to 10, I'd say my security protections were a 9.8 or higher. But these hackers, all they do is sit around in a basement and figure out ways of hacking people," Terpin told WSJ. According to Terpin, weak minded employees at an AT&T authorized store handed the criminals control of his digital life, and a lot of valuable digital money.

New Ways to Get Hit

The digital world isn't the safest place, and hackers are coming up with new ways to take advantage of people all the time. While it might seem like you can make your life safe by using things like two-factor authentication, the sad fact is that the only safe place to be online, is offline.

If you are holding a large amount of digital assets, the only safe place to keep them is in cold storage. The price of a hardware wallet is low, and it offers amazing protection to your digital assets.