SIM Swapping is a known fraud and type of account takeover fraud that generally targets a weakness in two-factor authentication and two-step verification. The second factor or step is a text message. Since 2018, over $55M amount of money has been stolen through SIM swap attacks in the United States alone. Blockchain-based ecosystem, NEM believes that decentralized apps can provide a solution to this kind of problem.
NEM said that they are currently working on a solution that they called “FIX Network”. This is established to help mobile subscribers secure private keys and their transactions on SIM cards. NEM explained, “This unique architecture will allow mobile operators to deliver services such as digital identity management, cryptocurrency wallets, and personal data firewalls, all enabled by the safekeeping of private keys on the subscribers’ SIM cards.”
A feature of the FIX network called FIX ID will be able to prevent fraudulent activities by making identification on participants through owner global phone numbers. The company believes that mobile carriers would be able to use the FIX Network to provide OTT services like mobile banking, crypto wallets, and ID management. They also made some clarifications that FIX ID won’t be blockchain-based. The decentralized characters will be the ones to follow the philosophy of FIX Network as a solution.
FIX Network’s co-founder, Edwin Terek said: “Our exhaustive search for an appropriate platform led us to converge on NEM’s Symbol, as we are confident as this technology includes the features, security, reliability and interoperability between private and public blockchain networks to fulfill our current and future requirements. We are proud of our technology partnership with NEM.” Chief Executive of Veritaseum, Reggie Middleton, sued T-Mobile recently for enabling theft of amounting to $8.7 Million worth of cryptocurrency by SIM-swapping method.
Richard Yuan Li, a 20-year-old Californian, was charged on June 11 with the conspiracy to commit wire fraud by making SIM-swapping attacks. It is said that the attack affected at least 20 individuals. He was also charged with attempted extortion of a crypto investor, Investor A.