A digital currency investor has filed yet another lawsuit against one of the country’s top cellphone carriers for SIM switch fraud. According to the lawsuit filed in Pennsylvania, T-Mobile failed in its obligation to protect its users, resulting in the plaintiff losing $55,000 in Bitcoin.
SIM swaps have become all too regular in the digital currency business, resulting in millions of dollars in losses in some instances. After convincing the cellular carrier that he has lost his prior card, the fraudster ports the victim’s number to a new SIM card. The scammer now has access to all of the victim’s accounts, including digital currency wallets.AT&T has been the main target for the SIM swap fraudsters, as CoinGeek reported.
T-Mobile faces the latest lawsuit for SIM swap fraud. The lawsuit was filed by Richard Harris at the Eastern District of Pennsylvania.
He accuses the company of gross negligence in protecting customer information, negligent hiring and supervision of customer support personnel, and violation of state and federal laws.
As a result, Harris claims to have lost 1.63 BTC, which at the time of filing was worth over $55,000. He claims that his SIM was swapped on or about July 5, 2021. The fraudsters then accessed his Coinbase account, where they withdrew his entire BTC stash.
According to the investor, T-Mobile also failed to disclose or made false statements to hide the fact that it is aware that its security measures can and do fall short of its declared and implicit guarantees and pledges, as well as its statutory obligations.
Reggie Middleton, a digital currency investor who purportedly lost $8.7 million in digital currencies after a SIM change, was sued by the cell carrier a year ago, according to CoinGeek. Middleton claimed he felt “extreme worry, dread, and emotional suffering connected to the numerous occurrences of identity theft,” in addition to charging the corporation of negligence.