In this article, we have discussed the meaning of Crypto Sim Swap Attacks, how they occur, and various ways in which investors can protect themselves from such attacks.
The fact that most crypto exchanges use Email and SMS verification codes for securing investors’ digital assets, has fueled the rise of Crypto Sim Swap Attacks – a criminal act whereby hackers try to gain control of an investor’s phone number, email address, and other sensitive data, to enable them to gain access into the victim’s digital assets stored on different trading platforms and hot wallets requiring the code verification systems to access them. In this article, we have discussed the meaning of Crypto Sim Swap Attacks, how they occur, and various ways in which investors can protect themselves from such attacks.
Meaning of crypto SIM swap attack
A Crypto Sim Swap attack is a type of fraud where a hacker gains control of your phone number by porting it to a new SIM card in their possession. Once they have control of your phone number, they can use it to reset your passwords and gain access to your crypto trading accounts on the eToro trading platform, Binance, Coinbase, or any other popular trading platforms you might be trading on.
How do crypto Sim swap attacks happen
There are different ways that crypto sim swap attacks can happen. One common method is for the hacker to lure the victim into giving them their personal information, such as their full name, phone number, and Social Security number. The hacker often uses different means to achieve this, including phishing, persuasions through phone calls or direct visit.
Armed with this information, the attacker proceeds to contact the victim’s mobile carrier customer support, impersonating him/her and claiming to have lost their SIM card or phone. They now request a renewal of the victim’s mobile number from their mobile carrier service provider.
Once this is done, the attacker will gain control over your text messages and phone calls. They can now intercept SMS-based 2FA codes and reset passwords for various accounts, including cryptocurrency exchange accounts and digital wallets such as eToro Digital Wallet, Coinbase, and any other digital wallet linked to your phone number.
Can you protect yourself from Sim swap attacks
While Crypto Sim Swap Attacks have become a recurring threat to investors, there are steps that investors can take to protect themselves from such attacks. These include:
Strengthen your mobile carrier security: Contact your mobile carrier to inquire about the security measures they have in place for protecting against Sim Swap Attacks. Request additional layers of security on your account, such as requiring in-person visits for SIM card replacements.
Use alternative 2FA methods: Avoid relying solely on SMS-based 2FA. Instead, use authentication apps like Google Authenticator or hardware tokens for added security.
Multi-factor authentication (MFA): In addition to using alternative 2FA methods, consider enabling multi-factor authentication whenever possible. MFA requires more than just two steps for verification, making it even harder for attackers to gain access to your accounts.
Implement strong passwords: Always choose unique and complex passwords for your cryptocurrency accounts. This will make it difficult for hackers to guess them.
Monitor your accounts: It is very necessary that you review your crypto accounts often to see if there are any suspicious activities on them. Setting up alerts for login attempts and withdrawals can help you detect unauthorized access quickly.
Enable withdrawal whitelists: Some cryptocurrency exchanges offer withdrawal whitelists. This feature allows you to specify which wallet addresses are permitted for withdrawals, adding an extra layer of protection.
Keep personal records secure: Secure sensitive documents, such as your driver’s license or passport, as these can be used to assist in impersonation during Sim Swap Attacks. Be cautious about sharing scans or photos of these documents online.
Crypto Sim Swap Attacks have become a growing threat in the crypto industry today. While no security measure can guarantee complete protection, a combination of proactive steps can significantly reduce the risk of falling victim to such attacks. By understanding the mechanisms behind these attacks and diligently implementing security measures, investors can fortify their defense against the occurrence of such attacks in their crypto journey.