The chief executive of crypto company Veritaseum, Reggie Middleton, is suing telecommunications provider T-Mobile for allegedly permitting the theft of $8.7 Mln worth of cryptocurrency within a series of SIM-swap attacks.
In line with a recent filings published on 22nd July, Middleton was first targeted by SIM-swappers within July 2017. Despite immediately reporting the incident to T-Mobile, Middleton claims to possess been the victim of 4 successful SIM-swaps over the rest of 2017, and further attacks during 2018 and 2019.
The suit accuses T-Mobile of getting “abjectly failed” in its responsibility to guard the private and financial information of its customers.
SIM-swap attacks are executed by a hacker with the usually unwitting assistance of an employee of a telecommunications offering – who reassigns the target’s SIM card to a phone under the management of the hacker.
Once control over the SIM is secured, the attacker then attempts to gain access to sensitive accounts controlled by the victim, like emails, online banking, and crypto wallets or exchange accounts.
Adding further, Middleton’s suit revealed:
“As a results of T-Mobile’s gross negligence in protecting plaintiffs’ data, its negligent hiring and supervision of T-Mobile employees who were liable for protecting that information, and its violation of laws that expressly protect the info of wireless carrier customers, plaintiffs lost $8.7 Mln in cryptocurrency.”
The complaint adds that Middleton has “suffered and continues to suffer severe anxiety, fear, and emotional distress concerning the repeated instances of fraud.”
Earlier in Nov, Middleton and Veritaseum settled fraud claims concerning the company’s earlier 2017 ICO and paid $9.4 Mln to the United States SEC.
Lawsuits Against SIM-Swap Attacks
Lawsuits targeting telecommunications providers for permitting SIM-swap attacks to transpire have hiked in number over the past year, with AT&T presently facing two lawsuits from cryptocurrency investors for failing to stop attacks.
Additionally, suing AT&T, BitAngels founder and pioneering crypto investor Michael Terpin has brought a civil complaint against an 18-year-old for masterminding that attacks resulted within the loss of over $24 Mln in crypto.
Earlier in June, a 20-year-old Californian was charged for his role in 28 SIM-swap attacks.