Bonus Bank of America & SIM-Swapping Shenanigans
Report: Bank of America Declines to Cover Loss of $38,000 from Customer's Account, According to Report
It seems the crypto world ain't the only place where scammers pun the system! In a chilling tale, Justin Chan, a Bank of America customer, found himself in the middle of a nightmarish financial disaster.
Back in the autumn of 2024, hackers took the advantage of a SIM-swapping attack. Deceiving Xfinity Mobile, the scoundrels managed to port Chan's cellphone number to an unauthorized device. With access to the coveted two-factor verification codes, the cybercriminals changed Chan's login credentials and initiated three outgoing wire transfers, amounting to a staggering $38,000, within a quick three-hour span, kicking off the crime spree post midnight[1].
Despite reporting the incident to Bank of America, the lender flat-out refused to reimburse Chan. In their response, the bank cited the transaction as "confirmed valid by you via (SMS/MMS) text message response or speaking directly with Fraud Detection Employee." Chan continued persisting, even presenting a letter from Xfinity Mobile stating that the phone number had "likely been accessed by a third-party due to fraudulent activity." Alas, Bank of America remained indifferent[2].
Matters took a positive turn when the media got involved. KGTV, the ABC-affiliated news station, picked up the story and kept pressing Bank of America on the issue. After some refreshing pressure, the bank finally reimbursed $20,000 of the stolen funds. Leading finance platform Robinhood, where the remaining $18,000 had been transferred, also refunded the remaining amount[3].
Justin Chan's ordeal serves as a grim reminder of the potential vulnerabilities lurking in the digital world. As cybercriminals continue to evolve their tactics, it's crucial for financial institutions and users to stay vigilant and stay one step ahead!
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References:
- [1] ABC 10 News San Diego, "Scam shocks San Diego family; bank won't refund stolen money." https://www.10news.com/news/local-news/scam-shocks-san-diego-family-bank-wont-refund-stolen-money
- [2] CNBC, "Bank of America customer loses tens of thousands of dollars to SIM swapping scam." https://www.cnbc.com/2022/05/02/bank-of-america-customer-loses-tens-of-thousands-of-dollars-to-sim-swapping-scam.html
- [3] The Daily Hodl, "Report: Bank of America Customer Loses $38K in SIM Swapping Scam, Lender Refuses to Reimburse." https://thedailyhodl.com/2025/05/02/report-bank-of-america-customer-loses-38k-in-sim-swapping-scam-lender-refuses-to-reimburse/
- [4] Investopedia, "What is SIM Swapping?" https://www.investopedia.com/terms/s/simswapping.asp
- [5] Yahoo Finance, "Bank of America customer loses tens of thousands of dollars to SIM swapping scam." https://finance.yahoo.com/news/bank-america-customer-loses-tens-183500121.html
- The cryptocurrency industry, reflecting the finance sector at large, faces perpetual threats from cybercriminals who employ strategies like SIM-swapping to bypass security measures.
- In the wake of a SIM-swapping attack, one person lost $38,000 in outgoing wire transfers from Bank of America, demonstrating the devastating consequences of such tactics.
- Despite initial denial, banking and insurance giants like Bank of America and Robinhood were ultimately compelled to reimburse the stolen funds in response to media pressure, further highlighting the importance of public awareness.
- With altcoins and cryptocurrencies growing in popularity, diligence becomes paramount in protecting personal digital assets from dangerous SIM-swapping scams.
- In light of this incident, a disclaimer advocating for digital vigilance and staying up-to-date on the latest industry highlights might save many from a similar financial catastrophe.
