SIM swap scam victim Michael Terpin has written an open letter to the United States FCC Chairman Ajit Pai to take decisive steps against SIM swapping fraud.
October 22, 2019, | AtoZ Markets – U.S. entrepreneur Michael Terpin has written an open letter to Ajit Pai, chairman of the Federal Communications Commission (FCC), requesting urgent action on SIM swapping fraud.
In a SIM swap, criminals pose as the owners of a victim’s mobile phone number, convincing telecom providers to grant them access to the SIM card.
Terpin proffers solution to SIM swap fraud
In the open letter seen by AtoZMarkets on Monday, Terpin, a victim of SIM swap fraud, described the new Crypto fraud type as the “fastest growing cancer” on the mobile consumer landscape, and said it needs to end “quickly and effectively.”
To that end, Terpin suggested three remedies to combat SIM swap fraud: (1). Mandating all U.S. mobile carriers be prohibited from sharing pins and passwords with employees; (2). Mandating all U.S. mobile carriers to provide a “no port” option, whereby users would have to go through a carrier’s fraud department to transfer their SIM information; and (3). Initiating an “immediate, comprehensive” study (which was done for robocalls) with recommendations for mandatory reforms by carriers.
“These first two measures are easy to implement: the first would simply require using a phone keypad to punch in the numbers, something every carrier already uses for other commands, and the second would mandate a policy that some, but not all, carriers already offer,” said Terpin.
About the $24 million dollars SIM swap scam
In August 2018, Terpin sued wireless network carrier AT&T for $224 million after his SIM got swapped by hackers.
This allegedly resulted in the loss of about $24 million in cryptocurrencies and a further $200 million in punitive damages. In response, AT&T filed a motion to dismiss, saying that Terpin had failed to state a claim upon which relief could be granted. A court, in turn, granted Terpin a period to amend his lawsuit.
In another case, Terpin had also sued 21-year-old Nicholas Truglia for accessing his funds via a SIM swap hack. Terpin won that case as a court ordered Truglia to pay him $75.8 million in compensatory and punitive damages.
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