Cybercrime is a growing threat in Canada. In 2023, Canadians lost over $569 million to fraud, a dramatic rise from previous years. Whether through identity theft, data breaches or phishing scams, Canadians are increasingly at risk of falling victim to cybercrime.
One cybercrime that is gaining attention is SIM swapping. SIM swapping allows criminals to take over your phone number and gain access to personal accounts, often leading to swift and significant financial losses.
A recent example from Toronto underscores the threat of SIM swapping. As part of "Project Disrupt," a law enforcement effort to combat cybercrime, 10 people were arrested and face a combined 108 charges after allegedly stealing more than $1 million through SIM swapping. At least 1,500 cellular accounts across Canada were compromised. This case highlights just how vulnerable digital lives can be to this type of attack.
A SIM swapping event can give criminals access to any account linked to your phone number, even those using two-factor authentication. Once they gain control, they can reset passwords and access your online accounts, including banking and investment platforms.
How Does SIM Swapping Work?
SIM swapping occurs when a bad actor uses social engineering, phishing or other methods to gather personal information. Once the criminal collects enough information, they impersonate you with your phone provider and convince them to transfer your number to a new SIM card.
This action disables your device, allowing the criminal to use your phone number to reset passwords and access accounts, including those secured with two-factor authentication. From there, they can transfer funds or commit other forms of fraud.
Signs You May Be a Victim of SIM Swapping
- Your phone suddenly stops working, loses network connection or can only operate on Wi-Fi.
- You receive a text message warning that your service is about to be switched to another provider.
Any unusual activity on your phone should prompt you to contact your phone provider immediately.
Best Practices to Protect Yourself from SIM Swapping
- Avoid sharing personal information online, especially on social media.
- Be cautious of phishing emails or calls asking for personal details.
- Use unique and strong passwords and secure your mobile provider account with a PIN.
- Reach out to your phone provider to ask about additional security measures against SIM swaps.
How NFP Can Help
Whether it's SIM swapping, a ransomware attack or another cyber event, NFP’s Personal Cyber Insurance team is committed to proactive support. In the event of a claim, we provide fast and equitable resolutions to even the most complex scenarios.
In the response to the needs we see among our clients every day, we’ve developed DigitalShield, an online personal cyber insurance policy that can be purchased in less than five minutes.
This policy covers financial losses and cybercrimes if you are a victim and need to make a claim, and provides 24/7 support with any question you have. It removes the guesswork, whether it be about your home network, your personal safety online or if you need to review a suspicious call or email you received. This bonus cyber concierge service gives you and your family members access to reliable support to bring you peace of mind.