VERIFY | SIM swapping is a real scam, and the FCC is cracking down

WASHINGTON, D.C., USA — Scams evolve as quickly as technology changes.

A WUSA9 viewer emailed us about a warning she received from a relative regarding SIM swapping and asked us to verify if it is a real.

QUESTION:

Is SIM swapping an actual scam?

SOURCES:

ANSWER

Yes, SIM swapping is a real concern, and the FCC is taking new, aggressive action to prevent it.

WHAT WE FOUND:

The FBI's Phoenix field office and Norton, a cybersecurity company, both say SIM swapping has become a much more significant concern the last couple years.

They both explained that the goal of SIM swapping is for a scammer to steal your phone number and take control of any accounts connected to it.

The first step in the scam is for a scammer to get someone's personal information, such as their birthday, address, mother's maiden name, or Social Security number. Companies often use those details to confirm someone's identity when logging into a website or using their services.

Some scammers obtain personal information by buying it on the dark web if it has already been compromised. Others use phishing schemes. According to the Federal Trade Commission, phishing involves text messages or emails designed to trick you into giving a scammer your personal information.

Once the scammer has the information they need, they call your cell phone provider pretending to be you. The scammer claims the SIM card in their phone is damaged and they have a new one they want to activate.

Norton says a SIM card contains a chip that contains a person's phone number and other information and allows the phone to make calls and texts.

If the representative for the phone company believes they are talking to you, they will activate the scammer’s SIM card and assign your phone number to the scammer’s device, instead. At that point, you will no longer be able to make or receive phone calls or send or receive text messages. 

After that, the scammer can reset all your passwords. Many companies and apps use two-factor authentication to confirm a user's identity. Most often, that means the user receives a text message with a six-digit confirmation code. Since the scammer has your phone number and receives all the calls and texts to it, the scammer will get those confirmation codes without you knowing.

The scammer can then drain the money from your bank account, and take control of your email, social media, and anything else connected to your phone number.

The FBI reported that SIM swapping is getting more common.

From 2018 through 2020, the FBI Internet Crime Complaint Center (IC3) received 320 complaints regarding SIM swapping representing a theft of approximately $12 million. In 2021, IC3 received 1,611 complaints of SIM swapping that cost people more than $68 million.

The Federal Communications Commission (FCC) acknowledged this week that the problem continues to grow. It announced a new task force dedicated to privacy and data protection. In a speech Wednesday, FCC Chair Jessica Rosenworcel called out wireless carriers for greed and lax data security practices and said the new task force will develop standards to help wireless companies prevent breaches and willful dissemination of customer data.

Verizon offers a few tips to prevent your personal information from being stolen in the first place. It recommends using strong passwords--to make them harder for hackers to obtain--and changing them often. Verizon also says you should be suspicious of unsolicited calls, texts, or emails asking for your data.

"If you receive a suspicious text message claiming to be from Verizon," the company advises on its website, "please forward it to us right away at S-P-A-M (7726), then delete it."