A 44-year-old former AT&T retail store employee from Portland, Oregon, was sentenced to 16 months in federal prison for selling his access to his employer's internal network to a hacker in a case involving unauthorized SIM swaps and bank-fraud charges. A federal judge also ordered him to pay $99,528 in restitution.
According to FBI Los Angeles
, Carter's case involved SIM-swapping activity while he was working at an AT&T store, per a
U.S. Department of Justice
press release. Carter pleaded guilty on March 24 to one count of conspiracy to commit wire fraud and bank fraud, and U.S. District Judge Stanley Blumenfeld, Jr. handed down the sentence.
SIM swapping involves transferring a victim's cell phone number to a SIM card the attacker controls. Once that number is hijacked, criminals can intercept two-factor authentication codes sent by phone call or text message, potentially exposing the victim's online accounts. SIM swapping can therefore be used to target bank accounts and other online services.
An Interagency Investigation
The Department of Justice announcement concerns Carter's sentencing. The case was ultimately prosecuted.
Carter's case illustrates how telecom access can be exploited by cybercriminals. SMS-based two-factor authentication can be used to help secure online accounts.
A Growing National Threat
The scale of the problem has drawn attention in recent years.
SIM-swapping can lead to account takeovers and related financial fraud. Criminals can use hijacked numbers to target online accounts.
Carter's case is far from an isolated incident. Hoodline previously reported on a separate Manhattan SIM-swapping case involving telecom workers. In another example, a November 2022 SIM-swap-related theft involved more than $400 million in digital assets.
Regulators and Courts Push Back
The risks associated with SIM swaps have drawn attention. Hardware tokens and app-based authenticators are authentication options.
SIM-swapping cases have also involved telecom workers.
Carter's sentencing adds to a string of recent cases involving carrier insiders and SIM-swapping fraud. Hoodline previously reported on a $435K Telecom Heist Indictment in Manhattan involving telecom workers, while this article discusses SIM-swapping activity.
