SIM Swapping Scams: How They Work and How to Protect Yourself

In today's digital world, where our mobile phones serve as the gateway to our financial accounts, social media, and other crucial personal information, SIM swapping has emerged as a particularly dangerous form of identity theft. This sophisticated scam uses your phone’s Subscriber Identity Module (SIM) card to give criminals access to your most sensitive information in minutes, often without you realizing until significant damage has been done.

What is SIM swapping?

SIM swapping (also called SIM hijacking) occurs when fraudsters transfer your phone number to a SIM card they control. Once they have control of your phone number, they can receive all calls and text messages meant for you—including one-time passwords and authentication codes used to access your accounts. Now that they have your personal info, passwords, codes and more, they can do whatever they want with your accounts, your money, and even your online reputation.

Common tactics used by fraudsters

Social engineering

Social engineering is one of the most common methods used in SIM swapping attacks. Here's how it typically works:

1. The fraudster gathers personal information about you through data breaches, social media, or phishing attacks.
2. They contact your mobile carrier, impersonating you.
3. Using your personal information, they convince the customer service representative that they are you and have "lost" their phone or damaged their SIM card.
4. They request that your phone number be transferred to a new SIM card that they possess.
5. Once approved, your phone service is deactivated, and their device becomes activated with your number.

Many carriers have security questions or Personal Identification Number (PIN) codes for verification, but determined fraudsters often research answers to common security questions or claim they've forgotten the PIN and use other personal details to "verify" their identity.

Malware infiltration

Some sophisticated attackers target mobile carrier employees directly. Here are a few ways in which they do this:

1. Fraudsters identify employees who have access to customer account management systems.
2. They send targeted phishing emails containing malware to these employees.
3. If an employee unsuspectingly opens the malicious attachment or clicks a compromised link, malware is installed on their work computer.
4. This malware allows the attacker to gain access to the carrier's internal systems.
5. The attacker can then perform SIM swaps without having to interact with customer service representatives.

Employee bribery

Unfortunately, insider threats also exist in SIM swapping schemes. A fraudster can pinpoint and bribe corrupt mobile carrier employees through these methods:

• Fraudsters identify and approach employees who have access to customer account systems.
• They offer financial compensation to perform unauthorized SIM swaps.
• The corrupt employee transfers the victim's phone number to the fraudster's SIM.
• These inside jobs are particularly dangerous because they bypass security measures designed to prevent social engineering attacks.

What fraudsters do after a successful SIM swap

Once attackers have control of your phone number, they can do all sorts of things for their own personal or malicious gain. From stealing your money to posing as you so they can scam other victims, these are a few of the things they may do with your phone number:

• Intercept two-factor authentication codes sent via SMS for your financial accounts, email, or cryptocurrency wallets.
• Reset passwords to your online accounts by using the "forgot password" feature that sends verification codes to your phone.
• Access and drain bank accounts or cryptocurrency wallets.
• Take over your social media accounts to scam your contacts.
• Steal your identity to open new accounts or take out loans in your name.
• Lock you out of your own accounts by changing recovery information.

Signs you may have been SIM swapped

Be alert to these warning signs:

• Your phone suddenly loses service with "No Service," "Emergency Calls Only," or similar messages.
• You can't make or receive calls or text messages.
• You receive unexpected notifications about account changes from your mobile carrier.
• You're unexpectedly logged out of various online accounts.
• You receive notifications about login attempts or password reset requests you didn't initiate.
• You notice unauthorized transactions in your financial accounts.
• Friends or family mention receiving strange messages from your accounts.

How to protect against SIM swapping

Strengthen your mobile carrier security

• Set up a PIN or security password with your mobile carrier that's required for account changes.
• Ask your carrier about additional security features they offer, such as requiring in-person verification with photo ID for SIM changes.
• Consider using a separate, unique email address for your mobile carrier account that you don't use for other services.
• Don't use easily guessable information for security questions (like your mother's maiden name or birth city).

Enhance your online security

• Use an authentication app instead of SMS for two-factor authentication whenever possible.
• Create strong, unique passwords for each of your accounts.
• Be cautious about the personal information you share on social media. The less sensitive info you share, the better.
• Regularly monitor your accounts for suspicious activity. Consider signing up for an identity theft protection monitoring service like IDShield.
• Use a secure password manager to keep track of complex passwords.

Protect your personal information

• Be wary of phishing attempts seeking personal information.
• Shred or burn documents containing personal information before disposal.
• Regularly check your credit reports for unauthorized accounts.  
• Consider placing a freeze on your credit if you're not actively applying for new credit.

What to do if you've been SIM swapped

If you suspect you're a victim of SIM swapping, act quickly. Follow these steps to help put a stop to the damage before it goes too far:

1. Contact your mobile carrier immediately to report the fraud and regain control of your phone number.
2. Change passwords for your important accounts, especially email and financial services.
3. Check your financial accounts for unauthorized transactions and report any to your bank immediately.
4. Log out of all sessions on your important accounts.
5. Report the identity theft to the Federal Trade Commission at IdentityTheft.gov.
6. Place a fraud alert or credit freeze with credit bureaus.
7. Monitor your accounts closely for several months following the incident.

How IDShield can help you

SIM swapping is just one of many identity theft threats in today's digital landscape. IDShield offers monitoring services to help you detect identity theft and can help restore your identity if you become a victim.

Proactive services

IDShield provides:

• Social media monitoring: Alerts you to reputational risks on your social accounts, which could be warning signs of account compromise.
• Credit score tracking: Monitors your credit score and alerts you to changes that might indicate fraudulent activity.
• Personal information monitoring: Watches for your personal information on the dark web and in public records.

Consultation

With IDShield, you get:

• Access to licensed private investigators for assistance with identity theft concerns
• Consultation with customer care specialists who can answer questions about ways to help protect your identity
• Guidance on strengthening security measures for your accounts and devices

Full-service restoration

If you do become a victim of identity theft, IDShield offers:

• Full-service identity restoration services by Licensed Private Investigators
• Identity theft specialists who work on your behalf to contact relevant organizations
• Assistance with filing necessary paperwork and making required calls
• Follow-up to ensure your identity has been restored to its pre-theft status

Additional benefits

IDShield also provides:

• Up to $3 million protection plan covering certain costs related to identity concerns
• Consultation to help you understand your financial status
• Continuous monitoring and alerts to potential threats

Worry less with an IDShield membership

SIM swapping is a serious threat that can have devastating financial and personal consequences. By understanding how these scams work and taking proactive steps to protect yourself, you can significantly reduce your risk. IDShield offers an additional layer of protection and support to help you safeguard your identity in our increasingly online world.

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Written by Elyse Dillard, Content Specialist at LegalShield. Elyse creates educational resources about legal and identity theft protection services.

IDShield is a trademark of Pre-Paid Legal Services, Inc. (“PPLSI”). PPLSI provides access to identity theft services through membership-based participation. IDShield is a product of PPLSI. Some of the services provided under the plan by third party providers are subject to change without notice. All Licensed Private Investigators are licensed in he state of Oklahoma. The information made available in this blog is meant to provide general information and is not intended to provide professional advice, render an opinion, or provide a recommendation as to a specific matter. The blog post is not a substitute for competent and professional advice. Information contained in the blog may be provided by authors who could be third-party paid contributors. All information by authors is accepted in good faith; however, PPLSI makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information. The Identity Theft Insurance is underwritten and administered through American Bankers Insurance Company of Florida, an Assurant company. PPLSI is not an insurance carrier. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions.

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