In today’s world, it is almost impossible to live without a mobile phone. As the world is becoming more modernized, new threats like SIM swap scams are also increasing. In general, a lot of online activity of an individual is tied to his data and mobile number.
Though the adoption of new technology is a good thing, people need to be aware of the dark side as well. As Asia is experiencing an unprecedented adoption of the internet and smartphones coupled with first time internet users, creating awareness becomes the key to fighting this kind of fraud. To know more about SIM swap scam and the ways you can use to avoid it, continue reading.
What is a SIM Swap Scam?
SIM swap in simple terms is nothing more than SIM hijacking wherein cybercriminals fraudulently gain access to the victim’s phone number. Once they have the connection established, they can intercept all the communications such as SMS and calls including valuable two-factor authentication codes.
Simply put, once the SIM is compromised, the damages will be significant and can enable the scammers to gain access to any interface linked to your number.
How Does it Work?
SIM swap scam mainly can be divided into 5 steps which will be discussed below in detail.
Reconnaissance – Scammers start by gathering user profiles of the victims. In the initial stage, using things like phishing or social engineering, they procure information such as date of birth, address and even family details.
Contacting the service provider – Criminals get in touch with the service provider claiming that they need a new SIM card due to loss or damage.
Bypassing security – Crooks usually leverage the data gathered through reconnaissance to answer security questions or manipulate the customer support team into approving the SIM transfer.
Control – Once the SIM is activated, scammers start to intercept all calls and messages.
Executing fraud – With access to all the OTPs, cyber criminals can transfer funds, reset account passwords and gather additional information to sell on the dark web.
Why is Asia a Target?
Asia witnessed an unparalleled smartphone adoption. As the population was exposed to the internet, a lot of them didn’t have the awareness of the landscape and that in turn made them vulnerable to scams like this one. Let’s discuss the other factors below.
Rapid Digital Wave – Countries like China, India and other asian nations are witnessing a fintech revolution. A huge part of the population is getting access to mobile wallets and online banking services for the first time. As such, early detection of red flags is not exactly their super power.
Weak Consumer Awareness – Many users especially in the semi-urban areas don’t know the basics of the internet let alone advanced things like cybersecurity.
Inconsistent Regulations – Telecom regulation and policies differ from state to state and country to country. While few of them are thorough, there is a lag in enforcing uniform measures.
Implications of SIM Swap Scams
Implications of SIM swap scam are wide and it is a spectrum with no clear boundary. Below, we have listed the 4 major ones. Keep in mind the fact that scammers can stoop to any level to make a quick buck.
- Financial Losses – Victims usually face monetary losses as soon as their phone number is compromised. By making unauthorized transactions, the crooks drain the account balance.
- Identity Theft – Cyber crooks can use personal data for illegal activities which not only tarnishes victim’s reputation, but also creates a stigma.
- Emotional Distress – Just like any traumatic event, this kind of scam too leaves a mark. Affected people end up feeling violated and are anxious about future security breaches.
- Economic Impact – SIM swap scams erode trust in digital systems and ultimately hamper the adoption of the digital wave.
How to Protect Yourself from SIM Swap Scams
Though SIM swap scams are complicated, there are few things you can do to safeguard yourself from the threats.
For starters, using strong and unique passwords for every platform you interact with is advisable and that includes your mobile services as well. Secondly, monitor and review all of your bank accounts regularly to catch unauthorized transactions at the earliest(if any). Also, use two-factor authentication instead of OTP primarily.
Social media platforms are addictive and in general, people like to share things. However, be careful about what you post and never share sensitive details for any reason. Users also need to exercise caution whenever anyone asks for personal information. Scammers are good at manipulating people and they love to impersonate anyone with authority. So, do not let your guard down or else the consequences might be severe.
Lastly, stay informed about the latest scams by following industry specific blogs.
Conclusion
Sadly, SIM swap scams are growing in Asia and people are suffering significant damages because of it. To end this issue, from regulators, service providers to users, everyone has to put in the efforts. Just like with most things in life, educating the audience is the best way to get rid of this cancer.