Smartphones have become an essential part of daily life, powering food delivery, bank transfers, and access to cloud-based work. As people rely more on these devices, cybercriminals innovate, creating increasingly sophisticated schemes to mislead users.
One prevalent threat is identity fraud through SIM swap, a scam where criminals try to copy a victim’s SIM card. According to the Internet Security Office, attackers impersonate the user to obtain a replacement SIM from the mobile operator.
First, the attacker convinces the operator that they are the legitimate account holder. They may supply personal details such as name and identification numbers, which they often gathered through prior social engineering, SMS scams, phishing attempts, or data gleaned from the victim’s social networks.
Criminals can also exploit fake or insecure apps and vulnerable Wi-Fi networks to harvest sensitive information from devices. Once they have enough data, they contact the operator requesting a new SIM. The old card is deactivated and a new card is activated in the attacker’s hands.
As a result, the victim loses control of their mobile service. The device can fail to identify the SIM, show incorrect coverage, and be unable to send or receive texts. Meanwhile, fraudsters gain access to personal data and can impersonate the victim across social networks, email accounts, and digital banking platforms.
From there, they may carry out banking transactions by intercepting or altering notifications and confirmations that typically verify transfers, effectively masking unauthorized activity in plain sight.
identity fraud
Identity fraud via SIM swap is a growing concern for users in Canada and the United States. The crime blends social engineering, credential theft, and SIM manipulation to take over critical communications channels, making it possible to access financial services and other accounts with relative ease. To mitigate risk, individuals should treat personal details as valuable assets and apply strict security measures to mobile accounts and linked services. Markers of risk include unexpected service outages, sudden changes in service terms, and unusual login patterns across devices. [OSI]
coverage is lost
With a swapped SIM, legitimate lines can lose service, complicating text-based verification and OTP delivery. Attackers can then pose as the user to reset passwords, authorize payments, or approve new devices. Personal information stored in apps and cloud services can be exploited, enabling broader access to emails, social profiles, and financial data. The result is a dangerous combination of reduced device control and elevated access to private information. [OSI]
Criminals often leverage this access to monitor notifications and use the compromised accounts to approve or cancel actions. In this way, they can oversee transactions, manipulate alerts, and continue exploiting the victim’s digital footprint for monetary gain. [OSI]
Understanding the chain of events helps users recognize risk signals early and respond quickly to protect their digital life.
How to avoid being a victim of ‘trading’?
Because SIM swap scams are common and increasingly nuanced, the Internet Security Office recommends several practical precautions to reduce exposure and slow attackers down.
First, contact your mobile operator immediately if service is unexpectedly cut off or if you notice a portability request to another network without your consent. Establishing two-factor authentication as an extra precaution is highly advisable.
Use authentication apps like Microsoft Authenticator or Google Authenticator for second-factor verification whenever possible. These apps generate time-based codes that stay on the device and are not sent via SMS, adding a robust layer of protection.
Review and update account recovery options so attackers cannot assemble enough personal data to perform the swap. Maintain strong, unique passwords for each service, and avoid reusing credentials across sites.
Be cautious about what is shared on social networks and adjust privacy settings to limit public exposure. Regularly audit connected apps and services to minimize risk exposure.
Only download apps from official stores such as Google Play or the Apple App Store, and routinely refresh access credentials. Keeping software up to date reduces the chances of exploitation through known vulnerabilities.
Finally, monitor financial accounts closely for unusual activity and enable alerts for payments and login attempts. If fraud is suspected, report it to the service providers and relevant authorities promptly to minimize damage and lock down accounts. [OSI]