Scammers are using increasingly new and sophisticated tricks to steal mobile phone numbers to gain access to victims’ bank accounts, credit card details, and other personal data.
SIM swap is a type of phishing fraud that poses a serious threat to mobile phone customers and bank security.
The scammers use SIM swap frauds to cancel and re-activate new SIM cards to their names to target bank accounts or any other money transfer services.
On 22nd April, Melbourne man Manpreet Singh Sapra received an email from the Bank of Melbourne suggesting that he may have been a target of phishing scam.
“When I tried to use online banking, I got to know that my password has been changed. I instantly tried to contact my bank but my phone was not working,” said Mr Sapra.
“The same thing had happened to my friend about two months ago. So I was sure that it was a fraud and I need to act quickly.
“I used my wife’s phone to alert the bank and I also contacted Vodafone to block my SIM."
Mr Sapra ended up having his Bank of Melbourne account hacked and the scammer also used his money transfer app ‘Orbit’ for an international transfer of $5000.
Manpreet Singh Sapra lost $5500 in a phishing scam Source: SBS
“It is very shocking and now I feel exposed to this world of hackers. All my personal information has been taken using the phone back-up and the passwords for my emails have also been changed,” he said.
Mr Singh alleges his phone service provider (Vodafone) didn’t do enough to prevent this data theft. “I am very frustrated. My phone was swapped to someone else without my authorisation and now Vodafone is saying that it’s not their responsibility and not their fault.”
Vodafone confirmed that a SIM swap was processed via the automated voice line (IVR) on 22 April 2018.
“In order for these to be processed the correct Vodafone account PIN was used,” Vodafone said in an email sent to Mr Sapra.
A Vodafone spokesperson told SBS Punjabi that SIM swap fraud and porting fraud is a concerning issue for all mobile carriers.
“The entire telco industry has been raising concerns about SMS banking authentication for years.”
“PIN security is very crucial. Just as you would protect your banking password and/or PIN, we stress to customers the importance of having a secure PIN for their mobile account.”
“We take customer security and privacy very seriously. We have robust processes and systems in place to minimise fraud against customers and Vodafone.”
Meanwhile, the Communications Alliance has also called on Australia's banks to use technologies other than mobile phones.
The lobby group for Australian telcos has declared that of verifying the identity of an individual during a banking transaction.
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Melbourne-based Dharminder Singh lost more than $11,000 to SIM swap scam in Feb 2018.
Mr Singh told SBS Punjabi that he still fears that fraudsters may hit again.
“They’ve all my personal information. Who knows how they’ll use it. It was a nightmare that I can't forget," he said.
"It took me a week to change all my passwords and banking details and I had to make numerous visits to banks and Vodafone centre to resolve this matter
“The hacker cancelled and re-issued my SIM on his name. An iPhone was also ordered on a delivery address in Canberra, which I cancelled after alerting Vodafone.
“Use your mobile phones and online information wisely as it can happen to anyone. Just be safe and be smart!”
Australians lost more money to scammers in 2017 than in any other year since the Australian Competition and Consumer Commission (ACCC) began reporting on scam activity.
According to the ACCC’s 9th annual Targeting Scams report released today, more than 200,000 scam reports were submitted to the ACCC, Australian Cybercrime Online Reporting Network (ACORN) and other federal and state-based government agencies in 2017.
Total losses reported were $340 million – a $40 million increase compared to 2016.
On this year’s (21- 26 May 2018) Scamwatch is asking people to “Stop and check: is this for real?” when they’re contacted by scammers who are pretending to be from well-known government organisations or businesses.
The ACCC encourages people to visit to report scams to warn others about them and learn more about what to do if they’re targeted by scams.
