Scammer Attack Friend.tech Users in Latest SIM Swap Scourge, Stealing $385K in ETH

Jimmy Aki
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Amidst the recent surge in SIM swap hacks, a scammer has made off with roughly $385,000 worth of ETH in under 24 hours. The victims of this cyber theft were users of Friend.tech, a decentralized social network for crypto enthusiasts.

Friend.tech Community Exploit Leaves Victims Compromised

Reports of drained funds affecting users on Friend.tech began surfacing early last week, and unfortunately, the attacker shows no sign of relenting.

In the late hours of October 4, blockchain investigator ZachXBT revealed that the same scammer had successfully pilfered 234 ETH worth $385,000 within a day.

According to ZackXBT blockchain transaction data, the on-chain movement of crypto assets was traced back to the same scammers who exploited the accounts of four victims from Friend.tech.

The victims of these attacks were left in shock as their ETH holdings were swiftly plundered.

One victim, identified as “KingMgugga” on the decentralized social network, shared his experience as horrific while desperately seeking assistance, which was futile.

Another victim, “sumfattytuna,” confirmed his unfortunate encounter with a SIM swap attack on the platform.

He explained how the scammer accessed his Friend.tech account from an Apple store and executed a SIM switch to an iPhone SE, ultimately compromising his wallet security.

The decentralized social network has long been tagged as a risky platform. On September 30, X user, “froggie.eth,” raised the alarm about his account on the social hub being compromised through a SIM swap attack.

This incident resulted in the theft of 20+ ETH from his account, estimated to be $32,600.

ZackXBT: Over $13.3M Has Been Stolen Through 54 SIM Swaps

ZachXBT has previously warned crypto traders about the surge in SIM swap attacks targeting various platforms within the crypto space.

On August 23, the blockchain investigator reported that $13.3 million had been stolen through 54 SIM swaps.

The affected platforms include Aptos Network, Metis DAO, PleasrDAO, Faraway, Supreme Kongs, Pixels Online, Swaap Finance, and more.

Manifold Trading’s Security Assessment

Manifold Trading, a platform designed to solve market inefficiencies through applied mathematics, has raised concerns that around $20 million of Friend.tech’s total locked value of $50 million might be at risk.

The platform stated that the firm’s current stricture allows scam developers to rebuild private keys through Shamir-Secret-Sharing shares to recover user data in their database.

To avert continuous account breaches, the platform proposed a series of security measures to fortify the integrity of the social ecosystem, with the initial step being the adoption of two-factor authentication (2FA).

Other proposed security measures include the integration of 2FA on key descriptions and transactions and enabling users to connect hardware wallets during the onboarding process.

Nevertheless, experts in blockchain and security argue that the call for enhanced security measures extends beyond Friend.tech. They are urging platforms, including X, to implement 2FA as a safeguard against scammers trying to exploit phone numbers.

This concern arises following Vitalik Buterin’s Twitter account hack through an alleged SIM swap attack in September.

In light of these spates of attacks, Oxfoobar,” the founder and CEO of Delegate, a reliable crypto wallet security platform, has instructed individuals to remove their phone numbers from all connected accounts.

This proactive measure can significantly reduce the risk of falling prey to SIM swap attacks.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.