Don’t Get SIM Swapped! New Scam Explained

Imagine waking up one morning, grabbing your phone to check your messages, and realizing you can't make calls or send texts. Panic sets in as you discover that scammers have taken control of your phone number. They have gained access to your bank accounts, email, and social media. This nightmare scenario is known as a SIM swap scam, and it’s unfortunately becoming all too common. But what is a SIM swap scam, anyway? Keep reading. We'll break down how SIM swapping works, its risks, the signs you might be a victim, and how you can protect yourself.

What is a SIM Card?

SIM stands for Subscriber Identity Module, and a SIM card is a small chip that slides into your phone and gives your device access to cellular networks. It’s responsible for identifying you to your mobile service provider, allowing you to make calls, send texts, and use data. Think of it as your phone's personal ID badge. Without it, your smartphone is just a really expensive camera!

What is SIM Swapping?

SIM swapping, sometimes called SIM hijacking, is a type of fraud where scammers trick your mobile carrier into transferring your phone number to a new SIM card in their possession. Once they have control of your phone number, they can intercept calls, texts, and even security codes sent by SMS. Ultimately, this can give criminals unauthorized access to your bank accounts, enabling them to initiate transfers and change passwords.

How SIM Swap Scams Work:

1. Information Gathering: Fraudsters collect your personal information through phishing emails, digging through social media, or buying info on the dark web.
2. Impersonation: They call your mobile carrier pretending to be you, claiming you have “lost” your SIM card and need a replacement.
3. SIM Activation: The mobile carrier transfers your phone number to a new SIM card controlled by the scammer.
4. Access and Exploit: With control over your phone number, fraudsters can access accounts that use SMS for two-factor authentication, such as your bank account.

Risks of SIM Swapping:

SIM swapping might sound like something out of a spy movie, but its risks are very real and can cause serious headaches if you're not prepared. Here is why SIM swapping can be such a nightmare:

Potential Identity Theft:

SIM swapping poses significant risks, especially regarding identity theft. Once scammers control your phone number, they can impersonate you and access sensitive personal information, such as banking details, social media accounts, and emails. This unauthorized access can lead to legal issues, damaged credit, and even the potential for further fraud—especially if your personal data is used to create new accounts using your identity.

Impact on Bank Accounts and Financial Transactions:

As mentioned, many banks use text-based two-factor authentication (2FA) for added security, but with control of your SIM card, scammers can intercept these verification codes, making it easier for them to bypass security measures and access your funds undetected. Therefore, scammers can quickly gain entry to your online banking accounts and make unauthorized transactions and transfers. This means they could potentially drain your bank accounts, max out your credit cards, and even take out loans in your name.

Access to Login Credentials and Other Accounts:

The most frightening part is that they can change your passwords and lock you out of your accounts, leaving you with little control over your personal and financial information. This can make it nearly impossible to access services like banking, email, sports tickets, social media, and more. Plus, the recovery process involves having to prove your identity to multiple institutions, which can be both time-consuming and frustrating.

Are You a Victim of a SIM Swap Scam?

One of the first signs of SIM swap fraud is losing the ability to make calls or send texts. If you experience this, contact your mobile carrier right away. Be cautious of any notifications from your mobile provider about surprising changes to your SIM card or phone number—these are major red flags.

Unexpected account lockouts, especially with online banking, might also indicate you are a victim. And finally, if you notice unauthorized transactions in your bank accounts, contact your bank immediately to freeze your accounts and start an investigation.

How to Prevent SIM Swapping:

• Use strong, unique passwords and PINs for banking apps and other sites. Never reuse passwords across multiple accounts.
• Enable two-factor authentication (2FA) using authentication apps like Google Authenticator instead of SMS for added security.
• Regularly monitor bank accounts for suspicious activity and report any unusual findings straightaway.
• Consider using identity protection services like Norton or LifeLock to monitor your accounts and alert you of suspicious activity.
• Be cautious of phishing attempts and unsolicited contacts requesting financial information. ALWAYS verify the source before sharing sensitive details.

How to Respond to a SIM Swapping Scam:

1. Contact Mobile Carrier: If you receive a message from your phone carrier disclosing that a new SIM card or device was activated, notify them immediately.
2. Freeze Accounts: If you believe you have been targeted by a SIM swapping scam, contact your bank directly to freeze your accounts and prevent further unauthorized transactions.
3. Change Passwords: Update passwords for all your accounts, starting with your email and bank accounts. This should also include changing your security questions like your mother's maiden name or the city where you were born.
4. Report to Authorities: File a report with the Federal Trade Commission(FTC), the Consumer Financial Protection Bureau(CFPB), and your local police.

Fraud Resources at Academy Bank:

At Academy Bank, your safety is our top priority. We are committed to keeping you informed about the latest fraud trends, and our dedicated bankers are ready to assist if you suspect fraudulent activity. Together, we can remain proactive and protect what matters most—your financial well-being.

If you think you've fallen victim to a SIM swap and can’t access your mobile or online banking, here’s how to contact Academy Bank for help:

• Option 1: Visit academybank.com and click on the chat bubble in the bottom right corner. Request to speak to a banker, available Monday - Friday, from 8:00 AM - 10:00 PM, Central Time; AND Saturday, 9:00 AM - 5:00 PM, Central Time.
• Option 2: Call the Academy Bank Client Care Line at 877-712-2265, Monday - Friday, 8:00 AM - 7:00 PM, Central Time.

FINANCIAL EDUCATION: Scams & Fraud; Preventing ID Theft; Reporting ID Theft; Fraud Alerts & Freezes; Mobile Security Tips; Visa Card Security.

SCAM-SPECIFIC RESOURCES: General Cybersecurity; Phishing Emails; Phone Scams; Text Scams; Pig-Butchering Scams; Elder Financial Abuse; Business Fraud; Tax Return Security.

Member FDIC