Wireless Carriers Accepting Bitcoin Make Big Push for SIM Swap Cell Phone Security Programs

Cloaked Wireless, a Mobile Virtual Network Operator (MVNO), has recently introduced strong measures against unauthorized SIM swapping and porting attacks, aiming to solve the SIM swapping problem by introducing robust measures against unauthorized SIM swapping and porting out attacks. It also stood out by accepting Bitcoin as a payment method, demonstrating its crypto-friendly approach to the U.S. telecom industry.Bitcoin Miner

In the crypto ecosystem, the threat of SIM swapping fraud is a pressing issue that jeopardizes personal and financial security.

Can Cloaked Wireless Prevent SIM Swap Incidents?BITMAIN Antminer E9 Pro

CEO Jeremy Hill emphasizes the company’s commitment to protecting subscriber data. They claim to achieve this through advanced authentication technologies and minimal data collection policies. As a result, these strategies significantly enhance cell phone security and reduce the likelihood of a breach.

In addition, Cloaked Wireless offers both electronic SIM ( eSIM ) and traditional SIM options. The company claims to have implemented strict controls to prevent unauthorized account changes, a typical tactic of SIM swapping fraud.

To bolster its defenses against SIM-swapping attacks, Cloaked Wireless draws on the expertise of crypto, privacy, and security experts. The company’s interaction with the cryptocurrency community is evident. It offers free lifetime service to major Bitcoin Core developers.

However, the company still lacks relevant experience and a proven track record in preventing SIM swap incidents.

How SIM Swap Fraud Happens｜Source: cyberHoot

The industry’s concerted efforts to combat SIM-swap fraud include important collaborations. Global communications giant Telefónica and Chainlink Labs joined forces last month to develop a solution based on blockchain technology. The collaboration marks the integration of telecoms with blockchain technology and aims to protect networks from SIM-swap attacks.

Recent cybersecurity incidents have highlighted the need for these precautions. For example, a SIM-swapping attack affected the U.S. Securities and Exchange Commission’s (SEC) X account in January, sending shockwaves through the cryptocurrency market.

Similarly, in November 2022, the FTX crypto exchange lost more than $400 million as a result of a SIM swap attack. Hackers used personal data to manipulate cell phone carriers to transfer phone numbers from the exchange to devices under their control.

These incidents highlight the vulnerabilities inherent in traditional mobile networks, thus underscoring the importance of strengthening security protocols.