Canadian Police Arrest Teenager Who Commits Crypto Fraud Through SIM-swapping

Teen arrested for theft of millions of dollars using SIM swap tricks to steal crypto. (photo credit: pixabay)

JAKARTA – Police in Canada have arrested a teenager for allegedly stealing CAD 46 million (approximately $36.5 million) in cryptocurrency using a SIM-swapping scam.

According to the Hamilton Police Service in Ontario, Canada, the teenager arrested for the theft of millions of dollars used a SIM swap trick to steal crypto. A SIM swap involves transferring the victim's phone number to the scammer's SIM card, allowing the latter to intercept the two-factor authentication (2FA) code and gain access to the victim's account.

According to the Canadian police department, the accused was identified and tracked down after spending some of the stolen crypto to buy a rare online gaming username. Following the arrest, the teenager has been charged with theft and possession of stolen goods, but the police were only able to confiscate about 7 million CAD dollars in stolen cryptocurrency.

The arrests were the result of a joint investigation by the FBI and the US Secret Service's Electronic Crime Task Force. Operations restarted in March 2020 and culminated in this week's arrests.

The Hamilton Police Service described the crime as "the largest reported theft of cryptocurrency from a single person." The accused was not named by police to comply with Canadian laws that prevent suspects under the age of eighteen from being identified in public. The victim is said to be an American citizen and has also not been officially identified.

Cryptocurrencies are starting to gain mainstream acceptance and attract new investors every day. It also creates new opportunities for scammers, fraudsters and cybercriminals to scam people out of their money, whether crypto or otherwise.

Despite the ongoing campaign against cybercriminals, the vast majority of cybercrimes continue to go unpunished. That is why the onus is on law-abiding citizens to save themselves from becoming another faceless victim.