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On Monday, Chairman of the Federal Communication Commission (FCC), Ajit Pai, received a letter from Crypto investor Michael Terpin, urging the commission to take SIM swapping fraud seriously.
Terpin, who was a victim of $24 million SIM swap fraud, requested that the commission enforces a law that prevents employees from gaining access to customer passwords.
He further requested that there should be a medium to grant customers access to the company’s fraud department before swapping their SIMs.
The SIM swap is one of the latest means fraudsters use to get critical information about an individual. Criminals use fake identity to claim they are owners of a particular SIM.
There, they convince the telecom providers to release information about the SIM card and grant them access to it. In September, Twitter CEO Jack Dorsey was a victim of a similar type of SIM swap fraud.
Michael Terpin claims AT & T is liable for his financial loss
Terpin had accused AT & T of complacency in the SIM swap fraud, where hackers stole his $24 million crypto fund.
He filed a lawsuit against the company in August 2018. In July this year, a federal judge in Los Angeles ruled that AT & T must respond to the lawsuit.
The lawsuit included other items, including breach of contract and violation of the FCC act.
Terpin wants $200 million in corrective damages and $23.8 million in compensation damage. Already, the court has granted him the right to demand both the violation of the FCC act and a breach of contract.
Presently, AT&T has filed a motion dismissing the damage on the lawsuit and asking Terpin to provide proof he lost cryptocurrency funds from the hack.
The company is also asking Terpin to say why AT & T should take the blame for the said loss.
A letter Terpin sent to FCC, he told the commission that about 50 people had contacted him, telling him that there were also victims of SIM swap hacks.
He pointed out that his case is not a unique one, as so many people have also suffered the same fate from these IM swap hackers. Terpin further requested FCC to investigate this crime in the same way it checked robocalling.
Victims are in the crypto community
Terpin exclusively told that all those who contacted him were traders or investors in the crypto industry.
He emphasized that the vigor Ajit Pai used in checkmating robocalling should be the same when investigating SIM swap fraud.
He pointed out that the victims of the latter have lost a lot of money, while there is no known financial loss by anyone who has been a victim of robocalling.
In his assertion, whatever irregularities people are doing to cause financial loss to others, need proper investigation and legal actions.
He hopes that the Commission tackles the issue so that it will not happen to future traders or investors in cryptocurrency.
According to him, if it continues, it will discourage those who are interested in blockchain or cryptocurrency.