T-Mobile Hit with $33 Million Fine Over SIM Swap Fraud Leading to Crypto Theft
T-Mobile has been ordered to pay $33 million in damages due to security lapses that allowed SIM swap attacks, which ultimately resulted in cryptocurrency theft.
This ruling is the largest known settlement involving SIM swap fraud.
The case was brought to arbitration by law firm Greenberg Glusker, which secured the award after a 12-day hearing in Los Angeles in the fall of 2023.
The arbitration panel found T-Mobile at fault for numerous security flaws that facilitated the SIM swap attacks, which targeted phone numbers to steal digital assets. The total amount includes over $6.5 million in attorney fees, interest, and additional costs.
READ MORE: Japan to Recognize Crypto as a Financial Product
This decision is seen as a landmark in holding telecom companies accountable for preventing SIM swap fraud. Pierce O’Donnell, the lead attorney for Greenberg Glusker, celebrated the ruling as a major win for mobile phone consumers.
He explained that during SIM swap scams, the victim’s phone is disconnected from the network, while the carrier routes the calls and messages to a phone controlled by the attacker, enabling them to access sensitive information.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
