4 Ways To Protect Yourself Against Sim Swap Fraud

No one is safe from SIM swap fraud. According to a study by Princeton University, four out of five SIM swap fraud attempts are successful. SIM swap continues to be challenging to detect and prevent as fraudsters adapt new attack techniques.

However, this does not mean there are no measures in place to protect yourself against fraud. This post will discuss everything you need to know to ensure you don’t fall victim to SIM swap fraud.

What is SIM swap fraud?

Mobile phones have become increasingly vital to the banking and financial sectors, offering users easy and secure access to sensitive accounts.

But the same benefits can be used against you to provide fraudsters with easy access to your financial accounts through your phone. This type of fraud is commonly known as SIM swap fraud, also known as SIM jacking or SIM splitting. It occurs when a fraudster tricks a mobile network provider into transferring your mobile phone’s identity to a SIM card they control.

By doing this, the fraudster will receive all texts and calls meant for you — including the one-time authentication codes that give access to your personal accounts.

How does SIM swap fraud work?

To understand how SIM swap fraud works, you need to know some basics about the SIM card. SIM is an acronym for Subscriber Identity Module — the card stores user data in Global Systems for Mobile (GSM) phones. Without a SIM card, a GSM phone cannot use a mobile network. The SIM card is identified through a unique number, which is a valuable asset for SIM swap fraudsters.

The fraudster starts by collecting any data they can find about you in order to get your number. The amount of data they collect determines how aggressive their social engineering will become. The scammers will then call your mobile provider, impersonating you and claiming to have damaged or lost their SIM card.

Once the mobile network provider falls for their social engineering, they request that a new SIM card — which the fraudster already possesses — be activated. They can also claim to have problems connecting their SIM to a new phone and require help with the process.

The fraudster bypasses your security questions using data collected in the first stage. This data can come from social media research, malware, the dark web, or phishing emails.

After gaining access to your phone number, the fraudster can communicate with financial institutions in your name. They can receive authentication codes or password resets sent to the phone through text or voice calls, create a second account under your name to move money, and avoid raising suspicions — since large transfers between accounts under the same owner may not trigger alerts.

Signs that you may be a victim of SIM swap fraud

The main reason for SIM swap fraud is to gain access to at least one of your financial accounts. If you observe any of the following warning signs, contact your mobile network provider immediately to avoid further losses.

• Unable to place calls or texts: if you are placing calls or text messages and they are not going through, it may mean that the fraudster has deactivated your SIM and is already using your phone number.
• Activity identified elsewhere: if you receive a notification from your mobile network provider that your SIM card or phone number has been activated on another device, contact the provider immediately to block any potential scam.
• Unable to access accounts: when you log in to your financial accounts and your credentials no longer work, you are likely already deep into a swap fraud. Contact your bank or other financial organisations immediately.

Why is SIM swap fraud so dangerous?

The purpose driving a SIM swap fraud scam is to get a victim’s mobile identity. The majority of fraudsters are aware that most people nowadays use their phones for authentication to sensitive accounts.

Once a fraudster has access to your mobile identity, they can blackmail you with personal messages from your social media accounts, or post abusive messages that can cause significant reputational damage. However, fraudsters are primarily after money. They could use your information to take out mortgages and loans under your name, leaving you with massive amounts of unexplainable debt. They can also clean out your entire bank account, max your credit cards, and damage your credit score and standing with most financial institutions.

How to avoid SIM swap fraud

The rising number of sophisticated cyber-attacks demands a new all-inclusive approach to cyber security. The best offence against SIM swap fraud is defence. Here are some ways to protect yourself.

1. Regulate online behaviour: beware of phishing attacks from emails or other forms of attack that aim to make you download malware or give out account credentials. Before downloading or opening a suspicious email, check the institution’s official website for any updates or promotions regarding the email you received. You can also contact the institution through its official social media handles.
2. Boost account security: strong passwords are extremely difficult to crack with standard computing — the more characters you add, the harder it will be. Upgrade all your account passwords to include different character types, and consider also upgrading your security questions and answers to something less easily guessable.
3. Additional PIN codes: you can request your mobile network provider to set a separate PIN code or password for account communications. The PIN should have at least six digits and is also effective against a related form of fraud known as port-out fraud.
4. Bank alerts: many banks and financial institutions now use services such as Verify from TMT ID to alert them to SIM swap activity. These alerts are highly effective in stopping an ongoing SIM swap scam. If there is irregular SIM activity, the bank sends you an alert through an alternate communication method and can add extra checks in the event of a SIM card re-issue. These checks can include:
   • Behavioural analysis technology: financial institutions use behavioural analysis technology that depends on KYC data and AI algorithms to discover irregular patterns in SIM card activity. When alerted to a SIM swap, the technology warns against sending SMS passwords or codes.
   • Call-backs: some financial institutions call the client directly to confirm they are who they claim to be when alerted to irregular activity.
   • Query platforms such as Live from TMT ID: this type of platform identifies the current network of a mobile number within 5ms. The platform has access to the entire number portability database, ensuring alerts are generated if there are any changes.

How TMT ID can protect you from the dangers of SIM swap

Using our real-time telco data, together with our live connections to mobile operators globally, TMT ID delivers a dynamic and protected consumer buying and online experience.

Our Mobile Number Intelligence API alerts our customers when a SIM swap, call divert, or port-out is identified on a mobile device, raising awareness of possible fraudulent activity.

Contact us today to talk about how we can help you in the fight against SIM swap fraud. You can also read about the impact of SIM swap fraud in India.