July 21, 2024
Friend.tech Users Suspect SIM Swaps, Loses 100 ETH+ in a Week
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Friend.tech Users Suspect SIM Swaps, Loses 100 ETH+ in a Week

Users of Friend.tech are cautioning against potential SIM-swap attacks following a recent series of alleged hacks resulting in the loss of nearly 109 Ether, valued at approximately $178,000, from four users within a week.

On September 30, the Twitter user formerly known as “froggie.eth” alerted that their Friend.tech account had been SIM-swapped, a method where attackers gain control of a user’s mobile number to intercept two-factor authentication codes, subsequently leading to the compromise of their account and the loss of over 20 ETH.

Several days later, on October 3, a series of Friend.tech users reported similar incidents. Musician Daren Broxmeyer revealed that he had been SIM-swapped and lost 22 ETH. He mentioned that his phone had been bombarded with phone calls, possibly in an attempt to prevent him from receiving a warning text from his service provider about the account breach.

On the same day, another user, “dipper,” shared that their account had been compromised, despite using strong passwords. They expressed bewilderment about how the attackers gained access to their accounts.

The fourth affected user, “digging4doge,” lost around 60 ETH after falling victim to a phishing scam that tricked them into sharing a login code. Manifold Trading, a crypto investment firm, explained that once a hacker gains access to a Friend.tech account, they can manipulate the entire account.

Manifold Trading estimates that approximately $20 million is at risk of exploitation through Friend.tech user-focused exploits, assuming that one-third of Friend.tech accounts are connected to phone numbers. They also noted that the platform’s security setup puts the entire platform at risk and emphasized the urgency of addressing these issues.

Manifold proposed that Friend.tech should allow users to implement two-factor authentication for logins, key decryptions, and transactions. Users should also be given the option to switch from a phone number-based login method to email, and third-party wallets should be permitted.

Notably, high-profile figures in the crypto space have previously fallen victim to SIM-swap attacks, resulting in their accounts being used for phishing attacks. This includes Ethereum co-founder Vitalik Buterin’s X account in September.

Image by Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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