Canadian Pharmacy Manager Loses 12.58 Bitcoins in SIM-Swapping Scam

A Canadian pharmacy manager is embroiled in a legal battle after losing 12.58 bitcoins, now worth over $1.36 million, in a SIM-swapping scam. The woman, Raelene Vandenbosch, has filed a lawsuit against a telecom company and a trading platform, alleging that a security lapse by a cellphone store employee led to the theft of her digital assets.

The incident occurred on or around June 30, 2021, when a hacker posing as a technician from Rogers Communications convinced an employee at a WOW! Mobile Boutique kiosk in Montreal to share their computer screen. This granted the hacker access to a Rogers customer database, allowing them to download Vandenbosch's account information onto a SIM card in their possession. Despite Vandenbosch living in British Columbia, the hacker was able to take control of her phone number, including her emails, text messages, and other messaging services.

Vandenbosch discovered the breach the following day when she found herself locked out of her phone number and mobile data. The hacker, now in control of her digital identity, gained access to her cryptocurrency wallets on Ledger and Shakepay, ultimately stealing all 12.57969337 bitcoins, which were valued at $392,704.61 at the time.

Vandenbosch is suing for negligence, breach of privacy, and breach of contract. She accuses Rogers of failing to adequately bolster its security measures and protect her privacy by granting kiosk workers excessive access to personal information and not enforcing mandatory verification questions. Match Transact Inc, the owner of the WOW! Mobile Boutique, faces similar accusations for failing to safeguard her personal data.

In response, neither Rogers nor Match has admitted or denied the allegations, instead advocating for the dispute to be resolved through private arbitration, citing an arbitration agreement Vandenbosch signed as part of her cellphone plan. However, a recent B.C. Supreme Court decision by Justice Anita Chan has ruled that the majority of the case must proceed to arbitration, with the exception of the portion of Vandenbosch’s claim seeking a public admission of wrongdoing, which can proceed in open court due to its public interest implications.

Vandenbosch’s legal team has not yet decided on the next steps, and Vandenbosch declined to comment. This case highlights the growing threat of SIM-swapping scams and the importance of robust security measures to protect digital assets. The outcome of this legal battle could set a precedent for future cases involving SIM-swapping scams and the liability of telecom companies and trading platforms in such incidents.