Single Fraudster Steals $385K through SIM-Swapping Scams on Friend.tech
Summary:
A lone fraudster stole Ethereum worth $385,000 in a day through a series of SIM-swap scams targeting users of friend.tech. The scammer managed to SIM-swap four users, with traced transactions leading back to them. Victims reported real-time attacks on Twitter, with some detailing how the scams occurred. Earlier in the week, more users reported their accounts being drained, amounting to 109 ETH in total losses. In light of these attacks, Manifold Trading urged friend.tech to strengthen account security measures, while others called for two-factor authentication to prevent further exposure of mobile numbers.
In a recent incident, a singular fraudster managed to pilfer Ethereum (ETH) worth approximately $385,000 in a span of 24 hours through a series of SIM-swap hacks that predominantly targeted users of friend.tech. Revealed by ZachXBT, a blockchain investigator on October 5, this perpetrator cunningly appropriated 234 ETH by orchestrating SIM-swaps against four unsuspecting friend.tech patrons. The cryptocurrency transactions converged back to the same hacker who had skillfully emptied the accounts of these four victims.
One of the individuals who fell prey to the most recent SIM-swap onslaught voiced his experience on X (Twitter) retorting, "Got sim swapped. The culprit somehow managed it from an Apple store and shifted it to an iPhone SE. Plea not to procure my keys, as the wallet is compromised." In a distressing event, one "KingMgugga" was undergoing an attack whilst simultaneously posting his ordeal on X, seeking assistance. Another X user, "holycryptoroni", confirmed being similarly assaulted expressing sorrow for being "swapped".
Earlier this week, another four friend.tech users professed to have their accounts depleted due to a SIM-swap or phishing attack. This amounted to nearly 109 ETH being purloined.
The platform, Friend.tech permits users to buy "keys" from individuals, thereby allowing access to private chat spaces. These SIM-swap scams take place once the perpetrators obtain the victim's phone number. With it, they gain authentication, granting them access to the victims' social media and crypto accounts.
As a response to these growing threats, Manifold Trading, a company devoted to the development of tools for the ecosystem, evaluated that roughly $20 million of friend.tech's $50 million worth of secured value could come under risk. The firm urged the platform to augment its account security provisions by integrating two-factor authentication.
Additionally, after the major hack of Vitalik Buterin's account in September due to a SIM-swap attack, many have called on X to introduce two-factor authentication to prevent the exposure of mobile numbers. "0xfoobar", Founder and CEO of wallet security company Delegate, advocated for the elimination of phone numbers from social media accounts to mitigate such risks.
Published At
10/5/2023 5:08:41 AM
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