AT&T is getting sued for security negligence in a US $224 million lawsuit filed earlier this month, which was the result of a major security breach.
The lawsuit was raised by the co-founder of a private investment group for Bitcoin (BTC) and CEO of TransformGroup, Michael Terpin, who is suing AT&T for neglecting security flaws and vulnerabilities allowing hackers to gain access to Terpin’s SIM information and steal around $23.8 million of his cryptocurrency tokens.
Hackers managed to get details by using the SIM swapping scam, which allows attackers to update the card without any security information which is usually required by AT&T and other providers.
To make things worse for AT&T, the lawsuit is a result of two breaches, one in June 2017 and other in January 2018, with the second one allegedly got completely ignored by AT&T.
The lawsuit accuses AT&T of failing to reasonably protect their customers from these attacks despite being supposedly aware of the breaches as they are happening.
While these attacks happen often, security experts advise on using a two-factor authentication which is not phone-based as well as add extra passwords to the account at the service provider level.
According to an email statement from AT&T given to HiBusiness.ca site, the company will dispute the allegations and “look forward to presenting their case in court”.