California resident sues AT&T for assisting hackers after losing $1.8 million in cryptocurrency – Cryptocurrency News

Telecommunication firm AT&T is sued for selling access to customer phones. The lawsuit filed by Plaintiff Seth Shapiro of California alleges that the company's employees assisted the hackers in performing the trending SIM-swap fraud. The victim was wiped off $1.8 million worth of cryptocurrency. Prior to this, AT&T was also accused of commencing the hack that cost the victim cryptocurrencies worth $24 million. AT&T asserts on their webpage that it is updating its technology and practice to lessen the probability of SIM-swap attacks.

AT&T, the world’s largest telecommunication company, has been charged with severe indictments. A resident of Torrance, California, has filed the lawsuit against the firm claiming that it helped the attackers of the SIM swap fraud by selling access to users’ phones.

Plaintiff Seth Shapiro reportedly lost $1.8 million of cryptocurrencies after falling a victim of the scam. He states that the firm is responsible for the betrayal act of its employees and failed to perform systems and methods to prevent such schemes. The complaint says, “On at least four occasions between May 16, 2018 and May 18, 2019, AT&T employees obtained unauthorized access to Mr. Shapiro’s AT&T wireless account, viewed his confidential and proprietary personal information, and transferred control over Mr. Shapiro’s AT&T wireless number from Mr. Shapiro’s phone to a phone controlled by third-party hackers in exchange for money. The hackers then utilized their control over Mr. Shapiro’s AT&T wireless number—including control secured through cooperation with AT&T employees—to access his personal and digital finance accounts and steal more than $1.8 million from Mr. Shapiro.”

Shapiro has backed his accusation by mentioning the earlier prosecuted AT&T employees, Robert Jack and Jarratt White. He demands the repayment of his financial damages, blaming the company for violating the privacy of its customers under the Communications Act. Besides this, his filed case also implicates AT&T of dishonoring the California Unfair Competition Law.

“The digital currency stolen during the SIM swap attacks also included cryptocurrency raised by Mr. Shapiro for a business venture. As a result of the theft, Mr. Shapiro had to end the venture and lay off all employees,” the lawsuit said. The filing of the suit is not the very first case for the firm. Earlier, a man named Michael Terpin charged AT&T for the same after he lost $24 million worth of virtual coins.

However, in contrast to the accusations, At&T states on its website that it is enhancing its technology to dwindle the possibility of such scams.

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Saloni Sheelwant
Saloni Sheelwant treasures to research and write about the new startups and technologies thriving at a very fast pace.

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