Cloaked Wireless, a mobile virtual network operator (MVNO), aims to tackle the SIM-Swap issue by introducing robust measures against unauthorized SIM swaps and port-out attacks. Additionally, it stands out by accepting Bitcoin as a payment method, showcasing its crypto-friendly approach in the US telecommunications sector.
In the crypto ecosystem, the threat of SIM swap fraud is a pressing concern, endangering personal and financial security.
Can Cloaked Wireless Prevent SIM Swap Incidents?
Jeremy Hill, the CEO, emphasizes the company’s dedication to safeguarding user data. They claim to achieve this through advanced authentication technologies and a minimal data collection policy. Consequently, these strategies significantly bolster mobile security, reducing the likelihood of breaches.
Furthermore, Cloaked Wireless offers both eSIM and traditional SIM card options. The company claims that it has implemented stringent controls to thwart unauthorized account changes, a typical vector for SIM swap fraud.
In its quest to fortify defenses against SIM swap attacks, Cloaked Wireless draws on the expertise of crypto, privacy, and security specialists. The company’s engagement with the cryptocurrency community is evident. It offers free lifetime service to key Bitcoin core developers.
Read more: 15 Most Common Crypto Scams To Look Out For
However, the company lacks a proven track record of preventing SIM swap incidents.
The industry’s collective effort to combat SIM swap fraud includes significant collaborations. Telefónica, a global communication giant, and Chainlink Labs joined forces last month to develop blockchain-based solutions. This partnership marks a pivotal step towards integrating telecommunications with blockchain technology, aiming to secure networks against SIM swap attacks.
Recent cybersecurity incidents underscore the need for such preventive measures. For instance, a SIM swap attack compromised the US Securities and Exchange Commission’s (SEC) X account, causing a stir in the cryptocurrency market in January.
Similarly, the FTX crypto exchange suffered a loss of over $400 million in November 2022 from a SIM swap attack. Hackers exploited personal data to manipulate phone carriers, transferring the exchange’s phone numbers to devices under their control.
Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell
These incidents illuminate the vulnerabilities inherent in traditional mobile networks, thus highlighting the importance of enhanced security protocols.
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