Home News Bitcoin Investor Sues AT&T for $224 Million after Mobile-Linked Theft

Bitcoin Investor Sues AT&T for $224 Million after Mobile-Linked Theft

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A bitcoin investor has sued telecommunications big AT&T for $224 million after shedding thousands and thousands of {dollars} price of cryptocurrency in a theft that he says is the mobile service supplier’s fault.

According to CNBC, California resident Michael Terpin has filed a 69-page grievance towards AT&T in U.S. District Court in Los Angeles, wherein he alleges that he misplaced $24 million price of cryptocurrency after the mobile service supplier negligently allowed a hacker to acquire unauthorized entry to his cellphone account.

Terpin, who in 2013 co-founded an angel investment group called BitAngels and was additionally a founding accomplice of the Dapps Venture Fund, claims that a person working with the hacker impersonated him and satisfied an AT&T retailer worker to present them entry to Terpin’s cellphone quantity with out requiring him to point out legitimate identification or present the PIN code to Terpin’s account.

“AT&T’s willing cooperation with the hacker, gross negligence, violation of its statutory duties, and failure to adhere to its commitments in its Privacy Policy,” he mentioned within the grievance. “What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”

In addition to the $24 million he misplaced within the two thefts, Terpin is looking for $200 million in punitive damages from AT&T, which is the world’s largest telecommunications supplier and the second-largest cellular providers supplier.

AT&T mentioned that it disputes the allegations and “look forward to presenting our case in court.”

In any case, the incident presents one other reminder of the risks of SMS-based two-factor authentication (2FA), which — although generally safer than not using 2FA at all — nonetheless locations customers liable to SIM-card jacking assaults, wherein an attacker methods a cellular supplier into transferring the sufferer’s cellular account to a hacker-controlled cellphone.

When accessible, safety consultants advise that customers safe their on-line accounts utilizing app- and safety key-based 2FA, although sadly many web sites don’t assist them. Cryptocurrency traders must also take into account securing their long-term holdings in offline “cold storage” wallets, which forestall hackers from acquiring entry to the personal keys over the web.

Featured Image from Shutterstock

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