Justin Chan from Carlsbad, California, recently found himself at the center of a nightmare that could happen to anyone. A hacker drained $38,000 from his bank account after his phone number was compromised in a SIM swapping scam. Now, he’s uncertain whether he’ll ever get his money back.
“This could happen to anybody,” Chan told ABC 10 News during a broadcast on Nov. 25.
How It Happened
One night in September, Chan noticed something was off with his phone. Odd notifications appeared, and suddenly, his phone no longer connected to his cellular network. He couldn’t send or receive calls or texts.
That’s when he realized he’d been targeted by a SIM swapping scam — a type of fraud where criminals gain control of a victim’s phone number by convincing a mobile carrier to transfer it to a device they control.
Access to his cell service wasn’t the only thing stolen. A letter shared with ABC 10 News revealed that three wire transfers totaling $38,000 had been made from his Bank of America account.
“I’ve never wired money out of Bank of America,” Chan said. “It’s just been money sitting there waiting for my mom to use for rent, food, and utilities.”
Fighting for Justice
Chan claims his mobile carrier, Xfinity Mobile, gave control of his number to the scammers after they provided only the last four digits of his credit card as verification.
“I asked them, ‘What kind of verification did you have?’” Chan said. “And they said, ‘We had the last four digits of your credit card.’”
The hackers didn’t stop there. Once they gained control of Chan’s number, they intercepted two-factor authentication (2FA) codes sent via text, which gave them access to his financial accounts.
To make matters worse, Bank of America initially denied Chan’s fraud claim. A letter obtained by ABC 10 News indicates that at least one of the fraudulent transactions was confirmed via text — a text Chan never saw because the scammers had taken over his phone number.
“That was just as bad as the criminal taking the money from me initially,” Chan said.
Following media coverage, Bank of America reopened the investigation. However, it remains unclear if Chan will recover his stolen funds.
A spokesperson for Bank of America stated, “We reimburse our customers for fraud losses resulting from verified, unauthorized transactions.”
Meanwhile, Xfinity Mobile is reportedly working with Chan to address the issue.
What Is a SIM Swap Scam?
SIM swapping is a growing threat where fraudsters impersonate a victim to convince a mobile carrier to transfer the victim’s phone number to a new SIM card. Once they have control, scammers can:
- Intercept calls and text messages.
- Bypass two-factor authentication (2FA).
- Access bank accounts, social media profiles, and email accounts.
According to the FBI, over 1,000 victims reported SIM swap crimes in 2023, with losses exceeding $48 million.
How to Protect Yourself
SIM swapping is particularly dangerous because it doesn’t always require victims to fall for a phishing scam or hand over sensitive information themselves. Fraudsters often gather personal details, such as names, addresses, and even birthdates, from publicly available sources.
Here’s how you can protect yourself:
- Use Strong, Unique Passwords: Avoid reusing passwords across accounts.
- Set Up a PIN with Your Carrier: Contact your phone provider and request a PIN or password that must be provided before any changes are made to your account.
- Avoid Text-Based 2FA: Use an authentication app like Google Authenticator or Authy instead of SMS for two-factor authentication.
- Limit Personal Information Online: Be cautious about what you share on social media.
- Monitor Your Accounts: Check your bank and financial accounts regularly for any suspicious activity.
What to Do If You’re a Victim
If you suspect you’ve been targeted by a SIM swap scam:
- Contact Your Carrier Immediately: Report the issue and regain control of your phone number.
- Notify Your Bank: Report unauthorized transactions as soon as possible.
- File a Complaint with the FBI: Visit the Internet Crime Complaint Center at IC3.gov.
- Freeze Your Credit: Protect against potential identity theft.
Final Thoughts
Justin Chan’s story is a stark reminder of how vulnerable we can all be to digital scams. Taking proactive steps, like enabling additional security measures and limiting personal information online, can make a big difference.
If you’ve been impacted by a similar crime or want to safeguard your finances, don’t wait—act now to protect yourself.
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