Crypto Holders Beware: FBI Issues Stern Warnings

The U.S Federal Bureau of Investigation (FBI) has sent a red alert to cryptocurrency exchanges and holders on a possible attack this week. The agency identified that the attack would be targeting digital assets which could lead to financial losses for the holders of such tokens. Per the warning, this attack would be largely fueled by Sim swapping, account theft, and tech support staff.

The FBI issued warning was sent out last week through a TLP protocol, with a Green designation signifying permission to share it with all stakeholders in the crypto community.

The FBI stated that the attackers are currently looking for opportunities to gain entrance into crypto companies’ systems. According to the watchdog, the crypto-related firms should be on the lookout for incoming mails, while also monitoring accounts for suspicious activities.

Additionally, it suggested the use of two-factor authentication for crypto holders and also warned them to be wary of the information they post online. The agency however, conceded that sim swap attacks can be unavoidable and very much difficult to tackle.

A sim swap attack becomes possible if the attackers get the victims’ phone number, then contact the tech reps to fool them that the phone number is lost or damaged. If he succeeds, another phone number will be issued to replace the victim’s number. In another way, having an insider in a telephone carrier could also help the attackers achieve their goal.

A notable sim swap case involved Michael Terpin, a blockchain investor, who sued AT&T for $200 million loss, for negligence, following a sim swap attack back in 2020. We also reported a similar case where a woman was suspected to have drugged a man to steal his Bitcoin through accessing his phone.

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