A Bank of America customer named Justin Chan was recently a victim of a SIM-swapping attack, where a hacker was able to drain $38,000 from his account. The attack occurred after the hacker compromised his phone, leading to the unauthorized wire transfers taking place while Chan was sleeping. Chan reported the incident to Carlsbad police and Bank of America, but he faced challenges in getting his funds refunded.
SIM swapping is a growing issue, with about 800 cases reported nationwide this year. In San Diego alone, there have been nine reported cases, but experts believe the actual number is much higher due to underreporting. Criminals use various tactics, such as gathering personal information online, to take over victims’ cellphone numbers and gain access to sensitive accounts.
To protect against SIM swapping and similar scams, experts recommend customers add a PIN to their phone accounts and use unique passwords for added security. If a fraud is caught early, law enforcement can freeze the money through a “financial kill chain.” However, recovering funds becomes challenging once time has passed, especially with cryptocurrencies involved.
In Chan’s case, Bank of America has reopened the investigation, but it’s unclear if he will receive a refund for the stolen funds. The bank prioritizes client protection and reimburses customers for verified, unauthorized transactions. Xfinity Mobile, Chan’s phone carrier, is also working to address the issue and prevent future scams.
Chan is sharing his story to raise awareness and prevent others from falling victim to SIM swapping. He emphasizes that anyone can be targeted by these scams and encourages victims to report such crimes to the Internet Crimes Complaints Center. By taking proactive steps to secure personal accounts and staying vigilant against potential threats, individuals can reduce the risk of falling prey to financial fraud.
