The United States Department of Justice released a fifteen-count indictment on May 9 that charges a hacking group labeled "The Community" with SIM swapping in order to steal cryptocurrencies.
According to the indictment, five Americans and an Irishman are charged with conspiracy to commit wire fraud, wire fraud and aggravated identity theft.
As described in the document, the hacking group used SIM swapping - a type of identity theft attack that generally targets a weakness in two-factor authentication.
The perpetrator usually gains control of a target's mobile phone by convincing or bribing the employee of the mobile provider to swap the phone number to a SIM card controlled by the hackers.
After successfully swapping the numbers of their victims, "The Community" managed to gain access to their various online accounts, including cryptocurrency exchange accounts and wallets.
As a result of fraud, approximately $2.5 million worth of cryptocurrency was sent to wallets controlled by the hacking group.
Attorney Schneider clarified that in this case, three mobile phone service provider employees purportedly helped swappers to steal money.
The charges of conspiracy to commit wire fraud and wire fraud carry a maximum penalty of 20 years in prison each.
As Cointelegraph previously reported, in November 2018, a law enforcement group dedicated to fighting cybercrime released a report on SIM swapping, stating that it had become increasingly popular in California.
In January, a 21-year old American was accused of stealing almost $24 million in crypto via SIM swapping.
US DoJ Charges Group of Individuals Who Stole $2.5 Mln in Crypto Via SIM Swapping
gepubliceerd op May 10, 2019
by Cointele | gepubliceerd op Coinage
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