In today’s digital world, smartphones are not just tools for communication—they hold the keys to our personal information, finances, and online identities. Unfortunately, this also makes them targets for fraudsters. One of the most dangerous types of fraud is SIM swapping—a scam that can leave you vulnerable to identity theft, account takeovers, and financial loss.

What is SIM Swap Fraud?

A SIM swap scam, also known as SIM hijacking, occurs when a fraudster transfers your phone number from your legitimate SIM card to one they control. Once they have access to your number, they can intercept texts, calls, and, most importantly, One-Time Passcodes (OTPs) used for securing your accounts. This means that if your bank or social media account sends a 2FA code via SMS, the scammer can intercept it and take control of your accounts.

In 2021, SIM swap scams cost victims an astonishing $68 million, with over 1,600 complaints in the US alone in 2022. And this threat is not limited to the United States—it is a global problem that continues to grow as more people rely on mobile devices for securing their digital lives.

How SIM Swap Scams Work

To pull off a SIM swap, fraudsters need to gather personal information about you. They usually do this through social engineering, phishing, or data breaches.

1. Social Engineering: Scammers manipulate victims into revealing sensitive personal information, often by pretending to be customer service representatives from a mobile carrier. They may call, email, or message you, asking for account details.
2. Phishing: This type of scam involves sending fake emails or messages that look like they’re from trusted sources, such as your bank or phone provider. These messages often include malicious links or requests for personal details.
3. Data Breaches: When organizations experience data breaches, personal information—like your name, address, and phone number—can end up in the hands of criminals. Scammers can use this stolen information to impersonate you when attempting a SIM swap.

Once the fraudster has gathered enough personal data, they contact your mobile network provider, pretending to be you. They claim they’ve lost their phone or need a new SIM, and provide the stolen information to convince the carrier to transfer your phone number to a new SIM card. After the transfer is complete, the scammer has full control over your phone number.

The Dangers of SIM Swap Fraud

SIM swapping can lead to devastating consequences. The main risk comes from Two-Factor Authentication (2FA), which is used by most online services to protect your accounts. Many services send a one-time passcode (OTP) to your phone number when logging in, and if a fraudster has hijacked your phone number, they can intercept these OTPs and access your accounts.

Once a fraudster has access to your phone number, they can:

• Access your online banking accounts by resetting your password with the OTP.
• Take over your social media profiles and cause reputational damage or blackmail.
• Steal your personal information and use it for identity theft.

Given that so many services now rely on SMS-based 2FA, the risk of SIM swapping is more dangerous than ever. The FBI reported that SIM swapping scams resulted in a loss of $12 million between 2018 and 2020.

How to Protect Yourself from SIM Swap Scams

There are several steps you can take to protect yourself from SIM swap fraud:

1. Enable Stronger 2FA Methods: Where possible, use app-based 2FA (like Google Authenticator or Authy) instead of SMS-based 2FA. These apps are harder to hijack because they don’t rely on your phone number.
2. Use a PIN or Password with Your Carrier: Many mobile carriers allow you to set a PIN or password on your account. This adds an extra layer of security and makes it harder for fraudsters to convince your carrier to transfer your number.
3. Monitor Your Accounts: Regularly check your bank accounts, email, and social media for unusual activity. If you notice something suspicious, report it to the service provider immediately.
4. Be Careful with Personal Information: Avoid sharing sensitive details like your full name, date of birth, or address on social media or public forums. Scammers often use this information to gather the data they need for SIM swaps.
5. Notify Your Carrier if You Suspect Fraud: If you think your phone number has been hijacked, call your mobile carrier immediately. They can lock your account to prevent further damage.

eSIM Technology: A Step Toward Better Security?

One promising development in mobile security is the rise of eSIM technology. Unlike traditional SIM cards, eSIMs are embedded directly into the device and don’t require a physical SIM card. This makes them harder for fraudsters to manipulate and swap out.

Advantages of eSIMs:

• Convenience: No need to physically swap SIM cards when changing carriers.
• Increased Security: Since eSIMs are harder to tamper with, they make it more difficult for fraudsters to carry out SIM swap attacks.
• Space-saving: eSIMs free up space in devices, allowing for slimmer, lighter designs.

Though not yet widespread, eSIMs are an exciting development that could significantly reduce the risk of SIM swap fraud in the future.

SIM Swap vs. Porting Attacks

You might hear the terms SIM swapping and porting attacks used interchangeably, but they refer to different methods of fraud.

• SIM Swapping: This is when fraudsters hijack your phone number and transfer it to a new SIM card that they control.
• Porting: Porting involves transferring your phone number to a different mobile provider. While porting doesn’t require the fraudster to physically swap your SIM card, it can still result in account takeovers.

Both SIM swapping and porting attacks are methods used by fraudsters to gain access to sensitive accounts, and they are often the first step in account takeover fraud.

How Does SIM Swapping Lead to Account Takeovers?

Fraudsters don’t just want to hijack your phone number—they want access to your online accounts. Here’s how it works:

1. Once the fraudster has your phone number, they can reset passwords for your bank accounts, social media profiles, and email accounts.
2. Most online services use two-factor authentication (2FA), which sends an OTP to your phone number. With the victim’s number, the fraudster intercepts these codes and takes control of the account.

If a fraudster gains access to your banking or email accounts, they can cause financial harm or steal your identity. This is why SIM swapping is such a serious threat.

What Businesses Can Do to Stop Account Takeovers

Businesses, especially those in finance and tech, need to protect customers from account takeover fraud. One way to do this is by using services like Prove’s Trust Score+™, which tracks the risk level of phone numbers in real-time. This service uses a combination of phone data and Mobile Network Operator (MNO) signals to detect SIM swap fraud and alert businesses to suspicious activity before it’s too late.

By implementing solutions like these, businesses can reduce the impact of SIM swap scams and prevent customers from falling victim to fraud.

Conclusion

SIM swap scams are a growing threat that can lead to serious consequences. To avoid them, you need to understand how they work and what steps can be taken to avoid them. Using strong 2FA methods, mobile account security, and monitoring personal information can help keep your digital life safe. eSIM technology can increase protection from these attacks in the future.

Stay vigilant, stay informed, and take the necessary steps to protect your digital identity.