T-Mobile Customers Sues T-Mobile After Losing $8.7 Million of Cryptocurrency Stolen in SIM Swap Scam

T-Mobile Customer Sues T-Mobile After Losing $8.7 Million of Cryptocurrency Stolen in SIM Swap Scam

T-Mobile has been hit with a multi-million-dollar lawsuit after Reginald Middleton lost millions of dollars when hackers gained unauthorized access to his account. The hackers used information supplied by T-Mobile to successfully circumvent the two-factor authentication measure, which allowed them to obtain a SIM card containing all of Middleton’s financial and personal information. Ultimately, $8.7 million in cryptocurrency was transferred out of Middleton’s account. 

Hackers Used T-Mobile’s Flawed Security Measures To Target And Hack Wealthy Individuals with Cryptocurrency Holdings

With this new scheme, called a SIM swap or SIM hack, hackers gain access to cell phone users’ accounts, which they then use to access the cell phone users’ cryptocurrency accounts. The hackers convince the cellphone company to switch a customer’s phone number from a legit device to one that the scammers control.

While such scams are becoming increasingly common and carry a truly frightening potential for fraud, many cellular companies have refused to take the relevant steps to protect their customers’ information. In light of T-Mobile’s recent security breach, where millions of its customers’ information was accessed, SIM swap cases have been on the rise. 

This recent lawsuit was filed in New York’s Eastern District. The suit claims that T-Mobile was culpable of gross neglect by enabling hackers to gain access to the T-Mobile customer’s financial and personal information. This illegal access facilitated by T-Mobile eventually allowed the hackers to move more than $8.7 million worth of cryptocurrency from the plaintiff’s accounts. 

According to the lawsuit, the SIM card swap provided the hackers with invaluable personal and financial data that let them access the plaintiff’s private and corporate cryptocurrency wallet.

The hackers would not have been able to transfer out millions of dollars’ worth of cryptocurrency without the information supplied by the cellular company T-Mobile.

T-Mobile Warned by FTC About Potential Fraud

The Federal Trade Commission (FTC) had warned the cellular company in 2016 about the potential of this kind of fraud. Despite several warnings from the FTC, however, T-Mobile allegedly neglected to improve security measures. According to the complaint, T-Mobile failed to adopt the recommended corrective steps, exercising a “rash disregard for the safety of their customers’ information.” 

Have You Lost Cryptocurrency as a Result of a SIM Card Swap?

Dimond Kaplan & Rothstein, P.A. represents numerous fraud victims, including victims of SIM card swaps. The firm has recovered millions of dollars for victims of fraud schemes throughout the United States and we will aggressively pursue claims to recover your losses.

Contact Dimond Kaplan & Rothstein Today

Contact a fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule a FREE case evaluation to review your rights and options. 

Our offices are located in MiamiLos AngelesWest Palm BeachNew York, and Naples, and we represent clients nationwide. Translation services are available.