A sim-swap scam is a type of fraud in which a criminal tricks a mobile phone service provider into transferring the target’s phone number to a device controlled by the criminal. The criminal’s goal is to gain access to the target’s personal information, including login credentials, bank accounts, and financial information.
A criminal contacts the target’s mobile phone service provider and pretends to be the target. They provide the necessary personal information to convince the provider to transfer the target’s phone number to a device that the criminal controls. Once the criminal has control of the target’s phone number, they can use it to reset passwords, access bank accounts, and steal personal information.
Steps involved in the scam:
- Criminal obtains personal information about the target, including name, date of birth, and address.
- Criminal contacts the target’s mobile phone service provider and pretends to be the target
- Criminal provides the necessary information to convince the provider to transfer the target’s phone number to a device controlled by the criminal.
- The criminal uses the target’s phone number to reset passwords, access bank accounts, and steal personal information.
Criminals may obtain personal information through various methods, including phishing scams, data breaches, and social engineering.
In Europe, sim-swap scams are becoming increasingly prevalent. According to a report by the European Union Agency for Cybersecurity, over 50% of 22 Mobile Network Operators surveyed from 22 countries across Europe reported swim-swap incidents. This type of fraud is particularly harmful in Europe due to the high number of individuals who use online banking and other financial services..
As of 2021, the UK is one of the countries in Europe that is hardest hit by sim-swap scams. The Financial Ombudsman Service reported that there has been a significant increase in the number of complaints related to sim-swap scams in recent years. In Germany, sim-swap scams have become a major concern for the financial industry, with the German Federal Financial Supervisory Authority reporting a significant increase in the number of cases over the years.
To combat sim-swap scams in Europe, authorities and financial institutions are working together to increase awareness and improve cybersecurity measures. The European Union is also working to improve the regulation of mobile phone service providers to reduce the risk of sim-swap scams and other types of fraud. These measures, combined with increased public awareness, are helping to reduce the number of sim-swap scams in Europe.
Use these tips to protect your personal information and also avoid swim-swap scams:
- Use strong and unique passwords for all accounts.
- Enable two-factor authentication for all accounts.
- Keep personal information private and limit the amount of personal information shared online. Regularly monitor bank accounts and credit reports for suspicious activity.
- Contact your mobile phone service provider and request that they add additional security measures to your account.
- Be cautious of unsolicited phone calls or emails requesting personal information.
- Do not reuse passwords across multiple accounts.
Action Fraud says this crime shot up in the period between 2018 and 2019, with some victims having reported up to five-figures in monetary losses.
