Protect Your Organization From SIM-swapping Attacks

As cyber threats evolve, organizations increasingly adopt stronger cybersecurity measures like multifactor authentication (MFA) to protect sensitive information. MFA requires users to present two or more unique credentials—such as a password and a security code—before gaining access to their accounts. This extra layer of security often deters cybercriminals, as having just the password is not enough to breach an organization’s IT infrastructure.

However, as cybersecurity defenses have strengthened, so have the tactics used by cybercriminals. One of the most concerning methods they employ is SIM-swapping, an attack that exploits the very system designed to protect users. By hijacking a victim’s mobile identity, cybercriminals can bypass MFA and wreak havoc on individuals and organizations.

What is a SIM-swapping Attack?

SIM cards are small chips in mobile phones that store essential information, enabling the device to function properly. They contain a user’s contacts, texts, and other critical data. Normally, transferring a SIM card to a new phone allows the user to seamlessly move their mobile profile to the new device. Unfortunately, cybercriminals have found ways to manipulate this process to their advantage.

In a SIM-swapping attack, cybercriminals deceive mobile carriers into transferring a victim’s phone number to a SIM card in their possession. Once they have control of the number, they can intercept calls, texts, and any other information sent to the victim's phone—especially the one-time passcodes used in MFA. With this access, attackers can infiltrate company networks, steal data, and compromise sensitive financial information. The FBI reports that SIM-swapping attacks led to nearly $50 million in losses last year alone, underscoring the severity of this threat.

How Does a SIM-swapping Attack Work?

SIM-swapping attacks generally follow these steps:

1. Gathering Personal Information: Cybercriminals begin by collecting personal information about their target. This data might include the victim’s name, date of birth, contact details, and even employment history. They often gather this information from social media profiles, phishing emails, or other forms of social engineering.
2. Manipulating the Mobile Carrier: Armed with the victim’s personal information, the cybercriminal contacts the victim’s mobile carrier, posing as the victim. They request a SIM swap, asking that the victim’s phone number be transferred to a new SIM card. Alternatively, the attacker may hack into the victim’s mobile profile and perform the SIM swap themselves, bypassing the carrier’s security measures.
3. Exploiting MFA: Once the SIM swap is complete, the cybercriminal intercepts MFA-related messages sent to the victim’s phone number. This might include one-time passcodes sent via text message, allowing the attacker to successfully log into the victim’s accounts.
4. Compromising Company Information: With access to the victim’s accounts, the cybercriminal can steal sensitive information, disrupt operations, and even drain company funds. The impact on both the individual and the organization can be devastating, leading to significant financial and reputational damage.
5. Reversing the SIM Swap: In some cases, the attacker may reverse the SIM swap after completing their attack, making it harder for the victim to detect that anything is wrong. This delay allows the attacker to continue exploiting the victim’s accounts undetected.

Who is at Risk?

While a SIM-swapping attack could potentially target any employee, cybercriminals often focus on high-profile individuals like executives. These targets typically have extensive online footprints, making it easier for attackers to gather the necessary personal information. Moreover, executives usually have greater access to critical company resources and are involved in high-value transactions, making them attractive targets for those looking to cause maximum damage.

Best Practices to Prevent and Respond to SIM-swapping Attacks

Organizations can take several steps to prevent and respond to SIM-swapping attacks:

1. Strengthen Account Security: Ensure that employees create complex, unique passwords and change them regularly. Implement account activity alerts and use strict access controls, along with a virtual private network (VPN), to minimize vulnerabilities.
2. Use Alternative MFA Methods: Since SIM-swapping attacks rely heavily on intercepting text messages, consider using other MFA options such as biometrics, physical security tokens, or standalone authentication apps.
3. Protect Personal Information: Encourage employees to keep their details private, especially on social media. Advise them to avoid sharing sensitive information via text or email with unverified contacts.
4. Collaborate with Mobile Carriers: Work with mobile carriers to implement additional security measures, such as requiring a PIN or answering security questions before making changes to a mobile account.
5. Educate Employees: Regular training on SIM-swapping attacks and related red flags—like unexpected service outages or suspicious account activity—is essential. Employees should know how to report incidents immediately.
6. Prepare a Response Plan: Develop a comprehensive cyber incident response plan with specific steps for handling SIM-swapping attacks. Ensure that the plan is well-documented, practiced regularly, and covers actions such as contacting the mobile carrier, notifying financial institutions, and reporting the attack to authorities.
7. Secure Insurance Coverage: Given the financial risks associated with SIM-swapping, it’s wise for organizations to secure adequate insurance coverage. Consult with insurance professionals to tailor policies that address the unique risks your organization faces.

Conclusion

As SIM-swapping attacks become more prevalent, organizations must understand these threats and take proactive steps to defend against them. By implementing robust security measures, educating employees, and preparing for potential incidents, companies can reduce their vulnerability to these sophisticated attacks and safeguard their critical assets.

For more expert guidance on managing cybersecurity risks and securing appropriate insurance solutions, contact us today at 909.466.7876

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