AT&T Faces Another SIM Swapping Lawsuit

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  • AT&T is facing another SIM swapping lawsuit
  • The latest is from Jamarquis Etheridge who lost almost 160 ETH to a SIM swapper
  • The company last year got a $200 million SIM swapping claim thrown out

AT&T faces yet another SIM swapping lawsuit after a customer sued the company for the loss of 159.8 ETH ($460,000) which he says was their responsibility. Jamarquis Etheridge filed a lawsuit in Texas last week which suggests that the firm “allowed wrongdoers access to plaintiff Etheridge’s wireless account and, without his authorization” and steal the cryptocurrency. AT&T has faced similar suits in the past, most notably that of Michael Terpin who sued the firm for $200 million, and has a case currently pending for $1.8 million.

AT&T Accused of Failing to Protect Customers

Etheridge claims that a breach in protocol from AT&T allowed someone to gain fraudulent access to his account, leading to the ETH being drained from his phone. By the time the breach was remedied the next day it was too late. The claim further alleges that AT&T was “well aware of the pervasive harm posed by SIM swapping” given the public advisory warnings the company has given to customers after a rise in such attacks in recent years.

Etheridge’s filing also claims that AT&T assured customers it was taking adequate care in protecting users from SIM swap attacks, a set of protocols that he says clearly failed:

AT&T engages in practices that…fail to provide reasonable and appropriate security to prevent unauthorized access to its customer wireless accounts, allowing unauthorized persons to be authenticated and then granted access to sensitive customer wireless account data, including access and control over 159.8 ethereum tokens.

One Thrown Out, Two to Go

Etheridge is seeking “compensatory and equitable relief restoring him” in reference to the 159.8 ETH, as well as seeking relief for statutory damages, treble damages, punitive damages, and all associated costs of the case. Unless he has a stronger case than Terpin however, he might leave worse than empty handed. AT&T is still facing another SIM swapping case to the tune of $1.8 million that was filed in 2019.