AT&T Sued for $224 Million After Phone Hackers Rob Crypto Investor

Cryptocurrency investor Michael Terpin has resisted the telecom giant AT&T, alleging the firm failed to safeguard his mobile phone from a hacking event which finally cost him $24 million.

In a litigation filed by Los Angeles litigation firm Greenberg Glusker on August 15, Terpin asserted that AT&T’s workers are complicit in a SIM swap fraud. In that this kind of scam, criminals present as the proprietors of the victims’ cell phone numbers, forcing telecom suppliers to give them access to their own phones.

This enables them to get the victim’s account at different providers, including cryptocurrency wallets.

The lawsuit asserts Terpin’s account was hacked twice in seven weeks, stating “most troubling, AT&T has not improved its protections even though it knows from numerous incidents that some of its employees actively cooperate with hackers in SIM swap frauds by giving hackers direct access to customer information and by overriding AT&T’s security procedures.”

Terpin is looking $24 million in compensatory damages and an additional $200 million in punitive damages, according to the lawsuit.

The lawsuit also asserts that safety problems are not anything new to AT&T, that has already been accused of failing to secure its clientele.

“In recent incidents, law enforcement has even confirmed that AT&T employees profited from working directly with cyber terrorists and thieves in SIM swap frauds,” the prosecution claimed.

When reached for comment, AT&T manager for corporate communications Jim Greer advised CoinDesk that “we dispute these allegations and look forward to presenting our case in court.”

He declined to elaborate on the organization’s objections to the allegations.

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