The Evolution of SIM Swapping Fraud: How Fraudsters Bypass Security Layers
Summary:
A new blog post by Group-IB highlights a surge in SIM swap fraud, despite security measures implemented by telecom providers to prevent such attacks. SIM swap fraud occurs when an actor obtains sensitive information, such as a victim's national ID, phone number, and card details, typically through phishing websites or social engineering tactics. The fraudster then uses this information to request a SIM swap or port the victim’s number to another telecom provider, sometimes converting it to an eSIM. This process is often carried out remotely through telecom provider apps, allowing the fraudster to take control of the victim's phone number. In certain regions, SIM swap and port-out requests are protected by a Government E-Verification Platform, which requires users to verify their identity by confirming a login request or using biometric authentication. However, researchers note that fraudsters have been able to bypass these safeguards by tricking victims into approving the verification, “often by posing as representatives of legitimate services—such as job applications or account updates.”
According to Group-IB, phishing websites have been commonly associated with SIM swap attacks, as these sites will typically impersonate reputable platforms to deceive victims into sharing sensitive information. Rather than creating random sites, fraudsters have been observed exploiting high-demand services in targeted regions by analyzing popular search trends and crafting convincing fake websites. Industries commonly targeted include car-related services, hiring platforms, government services, and other niche sectors, where fraudsters exploit user trust to collect personal details and facilitate SIM swaps or account takeovers.
Security Officer Comments:
SIM swapping has become a highly effective method for fraudsters to bypass security measures, particularly SMS-based two-factor authentication codes, which are commonly used to verify online transactions and account access. By gaining control of a victim's phone number, criminals can intercept these verification codes, allowing them to log into the victim's accounts and carry out unauthorized transactions. This access goes beyond financial theft, as fraudsters can also use the victim's phone number to steal personal information, gain entry to sensitive accounts, and even apply for loans or credit in the victim's name.
Suggested Corrections:
For Financial Institutions:
https://www.group-ib.com/blog/the-e...-fraud-how-fraudsters-bypass-security-layers/
A new blog post by Group-IB highlights a surge in SIM swap fraud, despite security measures implemented by telecom providers to prevent such attacks. SIM swap fraud occurs when an actor obtains sensitive information, such as a victim's national ID, phone number, and card details, typically through phishing websites or social engineering tactics. The fraudster then uses this information to request a SIM swap or port the victim’s number to another telecom provider, sometimes converting it to an eSIM. This process is often carried out remotely through telecom provider apps, allowing the fraudster to take control of the victim's phone number. In certain regions, SIM swap and port-out requests are protected by a Government E-Verification Platform, which requires users to verify their identity by confirming a login request or using biometric authentication. However, researchers note that fraudsters have been able to bypass these safeguards by tricking victims into approving the verification, “often by posing as representatives of legitimate services—such as job applications or account updates.”
According to Group-IB, phishing websites have been commonly associated with SIM swap attacks, as these sites will typically impersonate reputable platforms to deceive victims into sharing sensitive information. Rather than creating random sites, fraudsters have been observed exploiting high-demand services in targeted regions by analyzing popular search trends and crafting convincing fake websites. Industries commonly targeted include car-related services, hiring platforms, government services, and other niche sectors, where fraudsters exploit user trust to collect personal details and facilitate SIM swaps or account takeovers.
Security Officer Comments:
SIM swapping has become a highly effective method for fraudsters to bypass security measures, particularly SMS-based two-factor authentication codes, which are commonly used to verify online transactions and account access. By gaining control of a victim's phone number, criminals can intercept these verification codes, allowing them to log into the victim's accounts and carry out unauthorized transactions. This access goes beyond financial theft, as fraudsters can also use the victim's phone number to steal personal information, gain entry to sensitive accounts, and even apply for loans or credit in the victim's name.
Suggested Corrections:
For Financial Institutions:
- Automatically freeze high-risk actions when a SIM swap event is detected and require additional identity verification.
- Treat failed fraud attempts as early indicators of reconnaissance attacks rather than isolated incidents.
- Complement historical analysis (what happened?) with predictive analytics to stay ahead of fraudsters who operate in real-time. Effective fraud prevention requires instant, API-driven intelligence that continuously adapts to emerging threats.
- Fraudsters can fake data but cannot mimic genuine user behavior. Therefore, relying solely on knowledge-based authentication (e.g., security questions) is no longer sufficient. Integrating device history, geolocation consistency, and behavioral analysis (typing speed, mouse movement, login habits, session behavior) is essential, and can be achieved through solutions like Group-IB Fraud Protection.
- Fraudsters share tactics and exploit gaps in banking systems as a network, yet financial institutions often work in silos. Real-time intelligence sharing between banks, merchants, and identity verification providers is essential to staying ahead of evolving fraud tactics.
- Replace SMS-based 2FA with authenticator apps like Google Authenticator or Duo to minimize the risk of SIM swap fraud.
- Stay alert for unexpected 2FA prompts or password reset messages. If you receive one without initiating it, assume someone is testing your account security and take immediate action.
https://www.group-ib.com/blog/the-e...-fraud-how-fraudsters-bypass-security-layers/