Friday, 21 September, 2018

AT&T Sued for $224 Million After Phone Hackers Rob Crypto Investor

Altcoins US Investor Files Lawsuit Against AT&T Over Cryptocurrency Theft Rick D Altcoins US Investor Files Lawsuit Against AT&T Over Cryptocurrency Theft Rick D
Roberta Sherman | 16 August, 2018, 19:24

Terpin, represented by Los Angeles litigation firm Greenberg Glusker, claimed in the lawsuit that after the theft of the digital currency, his cellphone account was transferred to an global criminal gang. In this type of scam, criminals pose as the owners of their victims' mobile phone numbers, convincing telecom providers to grant them access to their phones.

Terpin also alleges the company's efforts to buy Time Warner for $85 billion indicate the company is willing to spend in order to acquire, but not "pay for a state-of-the art security system and hire, train, and supervise competent and ethical employees".

Terpin is seeking $24 million in compensatory damages as well as $200 million in punitive damages.

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The complaint claimed that the theft of the tokens occurred through what is called a SIM swap fraud.

According to the court documents, a total of three million digital tokens were taken from Terpin.

On both occasions, the first Terpin knew of the hack was when his phone went dead. He believes an AT&T worker handed over his phone number and other private information to an impostor.

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SIM swap fraud became an issue more than six years ago and has become an increasing problem, particularly with the growing use of two-factor authentication with hackers often targeting specific individuals. Once they have control of the account, they can use it to access online accounts and change the passwords locking out the rightful owner. Although it appears to have failed to implement its own security requirements - if we take Terpin's account of the theft to be entirely accurate - AT&T's lawyers will no doubt argue that it can not be held responsible for everything that happens subsequently.

When reached for comment, AT&T director for corporate communications Jim Greer told CoinDesk that "we dispute these allegations and look forward to presenting our case in court".

Many do not have the technical knowledge required to set up totally secure paper wallets. The lawsuit has alleged that AT&T's 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".

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Prosecutors could seek to appeal the ruling, and the authorities could still hold them over alleged visa violations. Kim Jong Nam, the estranged half-brother of North Korean leader Kim Jong Un , was killed in Kuala Lumpur airport.

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