Cryptocurrency SIM Swap Victim Sues Telecom Giant AT&T For A Loss of $1.8 Million

Telecom operator AT&T has been sued by an individual named Seth Shapiro, a resident of California, claiming to be the victim of a SIM-swap hack, which resulted in a loss of $1.8 million.

At&T is the second-largest wireless carrier in the US, with over 153 million subscribers and earning $71 billion in total operating revenues in 2018.

The victim, who according to the complaint is,

“a two-time Emmy Award-winning media and technology expert, author, and adjunct professor at the University of Southern California School of Cinematic Arts” alleges that between May 16 to 18, the employees of the AT&T transferred the ownership of their SIM to “a phone controlled by third-party hackers in exchange for money.”

Failure on AT&T’s part to protect his account from a SIM swap resulted in a major loss of cryptocurrency.

All of this resulted in,

“The hackers then utilized their control over Mr. Shapiro’s AT&T wireless number — including control secured through cooperation with AT&T employees — to access his personal and digital finance accounts and steal more than $1.8 million from Mr. Shapiro.”

Although AT&T allegedly followed proper procedures and alerted the authorities, Shapiro’s trust in AT&T was “misplaced,” given that AT&T employees were allegedly working on the inside with hackers.

“A group member brags that they “made 1.3 [million]” and they begin plotting about how to route the stolen cryptocurrency through various accounts and currencies in order to cover their trail. They also brag about plans to “buy some Gucci” or a “dream car” with the money they stole from Mr. Shapiro,”

the complaint states.

The victim is accusing the company of violating Federal Communications act for not protecting the confidentiality of his account information, the California state constitution right to privacy, California state unfair business practices statute, Federal Consumer Fraud, and Abuse Act., and, California Consumers Legal Remedies Act along with two negligence claims.

Shapiro is now seeking monetary damages including punitive damages and injunctive relief.

This article is Originally posted on CoinCentral.com
Author: AnTy

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