Sim Swapper Arrested Over $14 Million Heist

Karan Balwani

October 12, 2018 1:44 pm

Crypto Hack

Sim Swapper Arrested Over $14 Million Heist
7825 Total Views

Another incident of SIM swapping was foiled by a California task force. The authorities from the city of Oklahoma arrested a man who was a part of the hacking community, known mostly for “SIM swapping” incidents. The convict was accused of the theft of $14 million in cryptocurrencies in a single heist.

As reported by Oklahoma News 4, the Secret Service detained 23-year-old Fletcher Robert Childers and 21-year-old Joseph Harris for their connection to the world of SIM hackers. This is one of the biggest SIM jacking incidents in the crypto space.

SIM swapping is increasingly becoming the preferred method for hackers to scam users out of cryptocurrency. It consists of duping the cellphone service provider into transferring the number from the original user to a SIM card that is accessible by the hacker. The hacker then uses the card to gain access to the victim’s digital assets and reset social media passwords.

Harris has been charged with identity theft, grand larceny, and hacking based on the information provided by the authorities. The duo reportedly stole $14 million worth in cryptocurrencies from a company called Crowd Machine, a blockchain startup. The hackers had gained access to Crowd Machine CEO’s private keys to access the stored cryptocurrencies.

The Crowd Machine CEO reported the incident to the Regional Enforcement Allied Computer Team (REACT). This team is a task force that consists of multiple local California police departments that focus on cybercrimes. This team has been investigating SIM swapping incidents for months prior to this incident. A quick investigation led the task force to Harris and Childers who were arrested and charged for their criminal wrong-doings. It took the team three days to track down the convicts.

The investigators said that there will be more arrests in the future.

“REACT isn’t going to stop the SIM swapping investigation until SIM swapping stops. If it’s gonna take us arresting every SIM swapper in United States.” – John Rose, REACT commander

No Comments