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Hackers Charged With Looting $2.4M in Crypto via SIM Swapping

According to federal investigators, the suspects resorted to bribing staffers at the mobile phone providers in order to take over various victims' mobile phone numbers. One SIM swapping scheme allowed them to steal $1.9 million.

 & Michael Kan Principal Reporter

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The US has charged six people for using "SIM swapping" attacks to help them steal $2.4 million in cryptocurrency from various victims.

The six defendants were allegedly part of a hacking group called "The Community," which broke into several online cryptocurrency accounts and plundered the funds inside, according to an indictment unsealed on Thursday.

To break in, the suspects went beyond trying to crack passwords. They focused on taking over the mobile phone numbers of the people in control of the cryptocurrency accounts.

Mobile phone numbers are particularly valuable because they're often tied to your online accounts, particularly email. Forget a password, and the service provider can often send a one-time passcode to your phone number over SMS to help you unlock access. Many cryptocurrency platforms also use mobile phone numbers as a way to protect user accounts through two-factor authentication.

Unfortunately, the numbers can also be stolen. According to federal investigators, the hacking group pulled this off by sometimes impersonating the owner of a mobile phone number, and then tricking the cellular provider to transfer the number to a different smartphone.

At other times, the suspects resorted to bribing staffers at the cellular providers. In addition to Thursday's indictment, US attorneys unsealed a criminal complaint against three former mobile phone provider employees for allegedly helping the hacking group pull off the SIM-swapping attacks.

"Mobile phones today are not only a means of communication but also a means of identification," said US Attorney Matthew Schneider in a statement. "This case should serve as a reminder to all of us to protect our personal and financial information from those who seek to steal it."

The US is charging the six suspects with launching seven different attacks from December 2017 to May 2018, one of which allowed them to steal $1.9 million from a single victim. The stolen funds were then divided among the hacking group's members.

To protect yourself from SIM swapping, you can consider talking to your mobile phone provider about implementing a special passcode or PIN number needed to make significant changes to your account, including porting your phone number. Unfortunately, the security safeguards might not work in the event someone is able to bribe a mobile phone provider's employee into giving up access to your account.

Still, you can consider unlinking your mobile phone number from your most important online accounts. We also recommend substituting any SMS-based two-factor authentication with an authenticator app or hardware-based security key. To do this, you'll have to go into the security settings of your online accounts.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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