Michael Terpin has sued AT&T, on the claims that the telecom giant failed to protect his cellphone data eventually leading to hackers stealing $24 million in cryptocurrencies.
In a lawsuit filed by Los Angeles litigation firm on August 15, Terpin claims that AT&T’s have been complicit in a SIM swap fraud. This ia a kind of social reengineering scam, where scamsters try to inact and pose as the owner of mobile phone so as to gain access to the phone via telecom provider. Similar social reengineering scamming attempts have been noted previously on twitter via verified accounts.
This allows them to access various services through the victim’s accounts, which can also includes cryptocurrency wallets.
The lawsuit also claims that this isn’t the first account of At&T negligience on Terpin’s account, since it has been hacked twice in seven months. Terpin states,”most troubling, AT&T has not improved its protections even though it knows from numerous incidents that some of its employees actively cooperate with hackers in SIM swap frauds by giving hackers direct access to customer information and by overriding AT&T’s security procedures.”
$223.8 Million Lawsuit
Currently, Terpin is seeking $23.8 million in compensatory damages and $200 million in punitive damages.
The Lawsuit officialy states,
“In recent incidents, law enforcement has even confirmed that AT&T employees profited from working directly with cyber terrorists and thieves in SIM swap frauds.”
In a public statement, Terpin stated, “mainstream adoption of cryptocurrency cannot take place as long as phone company employees are handing over critical unauthorized access to the heart of everyone’s digital lives.”