Carlos Tapang of the US state of Washington has filed a lawsuit against T-Mobile. A lack of security allegedly allowed cybercriminals to hijack his mobile account and steal thousands of dollars worth of cryptocurrency tokens. Once the hackers had gained control of his mobile account, hackers changed the password on one of Tapang’s accounts and stole 19.6 BitConnect coins and one thousand OmiseGo tokens.
Allowed wrongdoers access
Carlos Tapang accuses T-Mobile of “improperly allowing wrongdoers to access” his wireless account on November 7th, 2017, according to Verge. Once the hackers had access, They then canceled Tapang’s number and transferred it to an AT&T account under their control.
The hackers then exchanged the coins for 2.875 Bitcoin and transferred it out of his account, the suit states. Meanwhile, the telecom company took a full day to secure the victim’s account.
At the time, the price of Bitcoin was $7,118.80, so had the hackers cashed out then, they would have netted a profit of $20,466.55.
Tapang on to say, “After the incident, BTC price reached more than $17,000.00 per coin,” but given the volatility of bitcoin prices, the hackers may not have benefited from the soar.
Slow and ineffective response
Tapang’s lawsuit maintains that T-Mobile is at fault because the telecom giant was too slow and ineffective in securing the account. Since T-Mobile failed to require a PIN and allowed the number to be transferred without any authentication, Tapang has accused the company of negligence, and therefore responsible for the hack. The lawsuit places blame on the telecom.
T-Mobile has failed to establish or implement reasonable policies, procedures, or regulations governing the creation and authentication of user credentials for authorized customers accessing T-Mobile accounts, creating unreasonable risk of unauthorized access.
The complaint also lists several anonymous internet users who have posted about similar security breaches to their own T-Mobile accounts.
Tapang claims he couldn’t use his cell phone number and had to “expend time, energy, and expense.” He’s also seeking damages for “emotional distress” from the incident. As the value of cryptocurrency rises, more hackers and fraudsters are targeting crypto assets. Hopefully, T-Mobile will step up their security as more people rely on their mobile devices to secure their crypto assets.