How does SIM swapping compromise SMS authentication?

SIM swapping is a fraudulent attack where cybercriminals take over a user’s mobile phone number by transferring it to a new SIM card. This enables them to intercept SMS-based authentication codes (OTPs) and gain unauthorized access to user accounts, which is why many people prefer using a virtual number for added security.

1. Target Identification: The attacker identifies a victim with valuable accounts (e.g., banking, email, crypto wallets).
2. Social Engineering or Hacking:

• The attacker impersonates the victim and contacts the mobile carrier.
• Using stolen personal data (like name, date of birth, or address), they trick customer support into transferring the victim’s phone number to a SIM card they control.

3. SMS OTP Interception:

• The victim's phone loses service.
• The attacker receives all SMS messages, including authentication codes.

4. Account Takeover:

• The attacker bypasses SMS-based authentication, gaining full access to sensitive accounts.
• This often results in identity theft, financial fraud, and data breaches.

🚨 Bypasses 2FA Security:

• Even if users have two-factor authentication (2FA) enabled via SMS, attackers can bypass it and gain access.

💰 Leads to Financial Fraud:

• Banking, cryptocurrency, and payment accounts are prime targets for SIM swap attacks.

🔓 Weak Carrier Security:

• Mobile providers lack strong authentication measures, making social engineering attacks successful.

🔄 Hard to Detect in Real-Time:

• Victims only notice after losing service or when their accounts are already compromised.

🔹 Avoid SMS-Based Authentication: Use a more secure method like passkeys or app-based authentication.
🔹 Enable Carrier PIN Protection: Set up a port-out PIN with your mobile provider.
🔹 Monitor for Unexpected Service Loss: A sudden loss of phone service could indicate a SIM swap attack.

Unlike SMS OTPs, passkeys use public-key cryptography, making them:
✅ Phishing-resistant
✅ Not tied to phone numbers
✅ Secure against SIM swap attacks

Businesses and users looking to enhance security and eliminate account takeovers should transition to passkeys as a more secure authentication solution.