T-Mobile Ordered to Pay $33 Million for SIM Card Attack

T-Mobile has been ordered to pay $33 million in damages due to a SIM card attack that resulted in cryptocurrency theft. The telecom giant was found liable for multiple security failures that enabled SIM card swap attacks, leading to the theft of cryptocurrency. The final amount, including over $6.5 million in attorney's fees, interest, and costs, has been fully paid by T-Mobile. The law firm Greenberg Glusker, which represented the plaintiff, has filed a petition with the Los Angeles Superior Court to confirm the award and make the details of the case public. The firm emphasized the scale and significance of this outcome, stating that this is the largest known SIM card swap-related award and a significant victory for cellphone consumers.

The litigation team, composed of attorneys Pierce O’Donnell, Paul Blechner, James Molen, and Eric Sefton, demonstrated T-Mobile's long-standing failure to address known security vulnerabilities. Blechner, while examining key witnesses including the perpetrators of SIM card swap attacks, highlighted that SIM card swap has been an uncontrolled security vulnerability for years. Operators like T-Mobile have long known about this issue but failed to take basic preventive measures. This ruling indicates that they must do better in securing their systems against such attacks.

The arbitration panel's decision underscores the importance of holding telecommunications operators accountable for their security failures. The outcome serves as a reminder to other operators to prioritize security measures to prevent similar incidents in the future. The case also highlights the growing concern over SIM card swap attacks, which have become a significant threat to cryptocurrency holders. As the use of cryptocurrency continues to rise, it is crucial for telecom companies to enhance their security protocols to protect their customers' assets.