What is a SIM swap attack and how to prevent it

A SIM swap attack can lead to identity theft and loss of cryptocurrency by intercepting 2FA codes and taking over accounts tied to your phone number.

Jul 16, 2025 at 05:43 pm

Understanding SIM Swap Attacks

A SIM swap attack is a form of identity theft where a malicious actor convinces a mobile carrier to transfer a victim’s phone number to a SIM card under the attacker's control. Once the number is transferred, the attacker gains access to text messages and calls intended for the victim. This method is particularly dangerous in the cryptocurrency space, where two-factor authentication (2FA) via SMS is still widely used.

In such an attack, bad actors often target individuals with significant digital assets, including crypto holders. By gaining control over a phone number, attackers can bypass 2FA codes sent via SMS, allowing them to log into accounts associated with that number — especially cryptocurrency wallets and exchanges.

Important: The core vulnerability exploited in a SIM swap attack lies not in the user’s device or password but in the trust relationship between the mobile carrier and the account holder.

How SIM Swap Attacks Are Executed

Attackers typically begin by gathering personal information about their target through phishing emails, social engineering, or data breaches. This information may include the target’s full name, date of birth, address, and last four digits of their Social Security Number.

Using this data, the attacker contacts the mobile carrier, pretending to be the legitimate account holder. They might claim they’ve lost their phone or need a new SIM card due to travel. If the carrier verifies the identity based on weak criteria, the SIM swap is approved, and the victim loses service while the attacker receives all calls and texts.

• Step 1: Collecting personal information about the target.
• Step 2: Contacting the mobile carrier using fabricated scenarios.
• Step 3: Convincing customer support to port the number to a new SIM.
• Step 4: Intercepting 2FA codes and accessing sensitive accounts.

Important: Attackers don’t need physical access to the victim’s phone — just enough personal details to impersonate them during a customer service call.

Risks to Cryptocurrency Users

For cryptocurrency users, a successful SIM swap can lead to complete loss of funds. Many exchanges use SMS-based 2FA as a security layer. When the attacker controls the phone number, they can reset passwords and approve transactions without needing access to the original device.

Once inside the exchange or wallet account, the attacker can initiate transfers to unknown addresses, draining the account before the user even notices. Recovery of stolen cryptocurrency is extremely rare, making prevention crucial.

• Loss of access: Victims are locked out of their own accounts.
• Funds theft: Cryptocurrencies like Bitcoin, Ethereum, and altcoins can be moved instantly.
• Reputation damage: If the compromised account is linked to public keys or NFTs, trust is eroded.

Important: Even hardware wallets can be compromised if recovery phrases are stored digitally or if backup options rely on SMS verification.

Preventative Measures Against SIM Swap Attacks

To protect against SIM swapping, users should take proactive steps with both their mobile carriers and online accounts. One of the most effective strategies is setting up a PIN or passcode with the mobile carrier, which must be provided before any account changes are made.

Users should also avoid using SMS-based 2FA. Instead, opt for authenticator apps like Google Authenticator, Authy, or hardware-based 2FA solutions such as YubiKey. These methods do not rely on phone networks and are far more secure.

• Contact your carrier: Request a porting PIN or account PIN to prevent unauthorized SIM swaps.
• Use app-based 2FA: Replace SMS verification with time-based one-time passwords (TOTP).
• Secure email and accounts: Enable strong passwords and consider multi-layered authentication.
• Limit shared information: Avoid posting personal details publicly, especially on social media.

Important: Regularly review account activity on all platforms, especially those tied to cryptocurrency holdings.

What to Do If You’re a Victim

If you suspect a SIM swap has occurred — for example, your phone suddenly loses service without explanation — act immediately. Contact your mobile carrier to reverse the swap and lock your account.

Simultaneously, check your cryptocurrency accounts for any suspicious login attempts or transactions. If possible, enable temporary account lock features or contact support teams to flag your account for unusual activity.

• Call your carrier: Report the SIM swap and request immediate reversal.
• Change passwords: Update credentials on all major accounts, especially those related to crypto exchanges.
• Enable stronger 2FA: Switch from SMS to app-based or hardware-based authentication.
• Report the incident: File a report with local authorities and notify relevant financial institutions.

Important: Time is critical when responding to a SIM swap — every minute allows the attacker more opportunity to steal assets.

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Frequently Asked Questions

Q: Can I completely eliminate the risk of SIM swapping?

While it’s difficult to eliminate all risks, implementing a carrier PIN, avoiding SMS-based 2FA, and limiting personal information exposure significantly reduces the chances of becoming a victim.

Q: Is it safe to use my real phone number for crypto accounts?

Using your real number is acceptable if you have strong protections in place, such as a carrier PIN and non-SMS 2FA. However, some advanced users prefer burner numbers or virtual phone services for added privacy.

Q: What should I do if my mobile carrier refuses to set up a PIN?

If your carrier does not offer PIN protection, consider switching providers or using a secondary number specifically for account verification purposes.

Q: How can I verify if my number has been swapped recently?

Check for unexpected service interruptions, missed calls or texts, and monitor account activity across platforms. Some carriers provide online logs showing recent SIM changes.