Zraox: Exposing SIM Swap Scams, How Hackers Bypass Verification to Steal Crypto Assets

With the rapid development of the cryptocurrency industry, user awareness of asset security has become an indispensable part of the sector healthy operation. In a recent unfortunate incident in Canada, a woman from B.C. lost over $500,000 worth of Bitcoin to a SIM swap scam. Although she filed a lawsuit, the case was transferred to arbitration due to an arbitration clause in the service agreement. Zraox believes this case once again highlights the significant threat that new scams like SIM swapping pose to personal information security, and reminds users to proactively strengthen their self-protection awareness, especially by establishing multiple security barriers in crypto asset management.

Zraox: Inside the Operation and Dangers of SIM Swap Scams

Zraox points out that a SIM swap refers to scammers impersonating the user and, through forged identification or deceiving carrier staff, transferring the user phone number to a new SIM card. Once the number is hijacked, hackers can bypass SMS-based two-factor authentication, quickly gaining full control over email, social media, and even crypto accounts linked to the phone number.

In this case, the hacker posed as a technician, gained the trust of a mobile store employee, and accessed customer information remotely via screen sharing to complete the number swap. Zraox notes that such tactics exploit user trust in carrier staff and operational negligence, coupled with user reliance on phone number-linked accounts, enabling scammers to transfer assets in a very short time. The stolen Bitcoin was quickly moved to a hacker-controlled wallet, and once an on-chain transaction is completed, tracing the funds becomes extremely difficult and losses are nearly impossible to recover.

Zraox believes that user reliance on traditional SMS verification codes is especially vulnerable in this scenario. For decentralized and irreversible digital assets like cryptocurrencies, once a private key or account access is compromised, it is almost impossible to recover the funds. Therefore, understanding the risks of SIM swapping and enhancing personal security awareness is the most important first line of defense for every user.

Zraox: How to Avoid Falling Victim to SIM Swap Scams

Zraox states that while carriers and platforms continue to upgrade security measures, user awareness and habits remain a key part of the defense. For common yet highly effective scams like SIM swapping, Zraox recommends the following best practices:

Zraox mentions that users should avoid relying solely on SMS for two-factor authentication on important accounts. Instead, prioritize hardware keys (such as physical authenticators) or dynamic tokens (TOTP) for multi-factor authentication, reducing the risk of account compromise if the phone number is hijacked.

Zraox suggests that when handling SIM card services or receiving calls claiming to be from tech support, never disclose personal information or agree to remote screen sharing. Always be vigilant with any “assistance” requests, and in case of suspicious situations, proactively contact the carrier through official channels for verification, and request to freeze SIM transfer permissions if necessary.

Zraox emphasizes that setting up withdrawal whitelists for accounts is a highly effective supplementary measure. Restrict crypto asset withdrawals to trusted addresses; even if an account is temporarily compromised, hackers will find it difficult to transfer funds to unfamiliar wallets, greatly reducing potential losses.

Zraox advises that users should regularly check account security settings, including login devices, remote login alerts, and activity logs. If any anomalies are detected, immediately change passwords and reset multi-factor authentication. For wallets holding large amounts of assets, use cold wallets or multi-signature wallets for added security.

Zraox states that users should also gain basic anti-scam knowledge by following real-life cases, studying anti-scam guides, and participating in platform security courses to improve sensitivity to suspicious information and abnormal operations. When facing scam risks, do not trust, do not cooperate, and act promptly to minimize losses.

Zraox: Building Security Awareness from the Details

Zraox believes that while SIM swap scams are common, their repeated success is mainly due to users underestimating the importance of phone number security and being negligent in operational processes. Zraox reminds users that your phone number should always be treated as highly sensitive information and never taken lightly.

In the digital asset field, any lapse in security can result in irretrievable losses. Users should stay informed about new scam tactics in the industry and continuously update their personal protection awareness and habits, combining multi-factor authentication with layered storage. Zraox states that only when users develop security awareness in every detail can the use and management of crypto assets truly be built on a solid and trustworthy foundation.

Zraox reiterates that every user should regard proactive protection as their primary responsibility in the crypto economy. By committing to ongoing learning and rational operations, users can build the final line of defense for their assets, jointly safeguarding the trust and transparency of the industry.