Different kinds of scams and frauds are prevalent in the crypto world. These can range from building imposter websites and fraudulent applications to sending malicious emails and stealing and using someone else’s identity. These are the attacks that no one wants to fall victim to, so it’s very important to always be on the lookout for any potential strikes.

Apart from these, the most common attacks in the fintech space also include SIM-swapping, or what is also referred to as a SIM swap scam. 

In this blog, we’ll discuss what you need to know about SIM swapping and the practical steps to take to stay ahead of scammers.

Key takeaways

• SIM swapping is a scam where a hacker impersonates you to take over your phone number. Once successful, they can intercept calls and texts, including 2FA codes, and take control of your crypto and other accounts.

• If you’re a victim, act fast: contact your carrier, lock down accounts, and report it to the authorities.

What is SIM swapping, and how does it work?

SIM swapping (also known as SIM-jacking or port-out fraud) is when a hacker tricks your mobile carrier into assigning your phone number to their SIM card, giving them control over your calls, texts, and two-factor authentication.

How does SIM swapping work?

Usually through social engineering, basically, psychological hacking. They’ll dig up personal info from data breaches, social media, or public records, then use that to convince your carrier that you’re switching phones or replacing a “lost” SIM card. Once they pull it off, your phone goes dead. Meanwhile, the attacker is receiving your calls, texts, and any two-factor authentication codes meant for you. 

And here’s the kicker: carriers have made it easier than ever to move a number to a new device. Great for convenience. Not so great when someone’s pretending to be you. With your number in their hands, attackers can waltz right into your accounts, reset passwords, and lock you out of your digital life in minutes.

One of the high-profile incidents on SIM swapping involved the hacking of Jack Dorsey in 2019, the then-Twitter CEO.

Signs that you’re a victim of a SIM swapping attack

While this fraud seems harmless at first, the truth is it can be very tricky. Here are some of the highly noticeable indicators to know whether or not you’ve become a victim of this malicious attack.

• Notification of activity from another device. You’ll get a notification from your mobile carrier when there’s any detected activity made elsewhere, such as activating your SIM card on another device.
• You’ll be unable to receive or place calls and text messages. This is often the first sign that you’re likely a victim of SIM swapping. If your text messages and phone calls won’t go through, it’s probably because the hackers have already deactivated your SIM and are using your number on their device.
• You’ll be unable to access accounts linked to the mobile number. Once your SIM gets compromised, your bank accounts, social media accounts, or emails are susceptible to hacks. If your login credentials are no longer working, it’s best to call your account providers immediately.
• Can’t call or text anyone:  If your calls and messages keep failing. Especially right after losing service. That’s a strong hint that someone else is now “you” in the eyes of your mobile network. Not good.
• Locked out of accounts tied to your number: These include banking apps, email, social media, or crypto wallets. If you can’t log in and you’re suddenly getting “wrong password” errors, your number might’ve been used to reset your credentials. Time to hit the panic button.
• Surprise transactions you didn’t approve: Are any odd bank alerts or crypto movements popping up via SMS? If it wasn’t you, it might be someone who’s rerouted your number and is now helping themselves to your money.

There are more ways to detect SIM swapping attacks, but these are the most common signs that you likely have fallen victim. Now that you know about these, how can you prevent your identity from being compromised?

Helpful tips to protect yourself from a SIM swap attack

Hackers and cyber fraudsters will do everything to make their mission a success. The good thing is, the chances of taking over your SIM and the confidential information linked to it can be reduced. If ever you find yourself a target, there’s still a way out. Here are some practical and helpful tips you can explore and try your hand at so these hackers won’t accomplish their mission.

• Enable authentication apps. For accounts that contain very sensitive and confidential information—like bank accounts and crypto or bitcoin wallets—consider using authentication apps, which enable two-factor authentication (2FA), which is a lot stronger than your normal passwords. This app generates a verification code and is tied to your smartphone or device instead of your mobile number. 
• Set up a strong PIN code. For an added layer of protection, it’s recommended that you enable a separate PIN or password for your accounts if your wireless service provider has this feature. With this enabled, a PIN will be required for logins and password changes. 
• Strengthen your account security. Use randomized, long, and unique character combinations in creating strong passwords. If there’s a question-and-answer or recovery question option, use information that only you know.
• Limit the amount of personal information you share online. This is very important as fraudsters use social media profiles and other websites to gather information about you, which they can use for impersonation. 
• Be aware of the prevalent fraudulent activities online. Technology is continuously developing, and as it evolves, the tactics and strategies of cyber hackers are also advancing. With that, you should familiarize yourself with the typical Internet scams like phishing, compromised software, applications, and websites, and so on.
• Be careful of responding to malicious emails, texts, and calls. Hackers and fraudsters usually carry out their plan by sending you either emails or text messages that need immediate attention and responses. If the message asks you for personal information or asks you to click a suspicious link, it’s likely a phishing scam. Hackers can also lure you through calls, so always be on the lookout for any unusual requests.
• Safeguard access to your passwords: Don’t save your passwords, usernames, or other login details directly in mobile apps for easy access.
• Stay updated on scam tactics: Fraud evolves fast. Phishing emails are getting more convincing, fake apps look real, and sketchy websites are harder to spot. Follow a few reputable cybersecurity blogs or news sources so you’re not caught off guard by the latest trick in the book.

Using your SIM card as an account and identity authentication is not always advisable. But there are still a lot of approaches you can use to prevent SIM swapping attacks. These are just a few examples, so don’t be limited to this list! But if you think you haven’t done any or all of these yet, perhaps it’s high time you tried them out!

What to do right away if you’ve been SIM-swapped

If your phone suddenly goes dark and strange things start happening with your accounts, don’t wait. The sooner you act, the better chance you have of stopping the damage. Here’s what to do fast:

• Call your mobile carrier right away: This should be your first move. Let them know your number’s been hijacked and that you did not authorize any SIM transfers. Ask them to shut down the compromised SIM immediately and flag your account for unusual activity.
• Contact your bank and other critical services: Next stop: any financial institution or important account tied to your number. Call your bank, credit card companies, crypto exchanges, and even email or social media platforms. Explain the situation so they can lock things down, flag suspicious activity, and keep thieves from moving your money or hijacking your identity.
• Change your passwords: Go through every major account and reset your passwords. Start with the big ones: email, banking, and crypto. If you’re using SMS for two-factor authentication, switch to an app like Authy or Google Authenticator ASAP. Don’t assume the hacker only targeted one account. They’re usually going for everything.
• Report it to the authorities: File a report with your local police or the appropriate cybercrime unit (in the U.S., that’s often the FBI’s Internet Crime Complaint Center). Include everything: dates, times, names of affected accounts, and any evidence you’ve got. It may not reverse the damage, but it helps create a paper trail and could assist in tracking down the attacker.

💡Time is critical. Act fast to limit damage.

Other Bitcoin scams to watch out for

Bitcoin scams, unfortunately, come in all shapes and sizes, targeting everyone from first-timers to seasoned holders who let their guard down. 

Phishing scams

One of the most common? Phishing. Scammers pose as trusted exchanges or wallet providers and trick you into handing over your login details or private keys. Sometimes it’s under the guise of a security check. Other times, it’s baited with flashy promises of bonuses or urgent “account issues.” Either way, once you hand over access, your coins are gone.

Learn more: How to Protect Your Account from Phishing Attacks

Fake investment schemes

Then there’s the classic fake investment scheme. These pitch wild returns like 10x in a week, that kind of thing. Some run like Ponzi setups, where early “investors” get paid out using money from new victims. It looks legit… until the whole thing crashes and burns.

Romance scams

A more personal angle? The romance scam. It starts innocently. Maybe on a dating app or social media. Weeks of chatting, building trust… then a sob story hits: medical bills, a family emergency, some manufactured crisis. And the solution? Just a little help with Bitcoin, of course.

Giveaway scams

Giveaway scams are another favorite. You’ll see them on social platforms, often featuring fake screenshots of Elon Musk, Vitalik Buterin, or some random influencer promising to double any BTC you send. “Limited time!” “Act now!” Sadly, people still fall for it.

Malware 

Oh, and let’s not forget malware. Some hackers plant code to lift your crypto keys or redirect your transactions without you noticing until it’s too late. One wrong download and you’re compromised.

The harsh reality? Once your Bitcoin’s gone, it’s gone. No chargebacks. No “oops” button.

The best defense? Skepticism. If something feels off, it probably is. Take your time. Verify links. Question offers. And always remember: in crypto, trust is expensive and often counterfeit.

Important note: These materials are for general informational purposes only and do not constitute financial, investment, or professional advice. Cryptocurrency investments involve significant risks, including potential substantial financial loss, and we do not endorse specific investments, tokens, or projects. Always conduct your own research and consult qualified financial or legal professionals before investing, as Paxful disclaims liability for any losses arising from reliance on these materials to the fullest extent permitted by law.