Criminals are cloning victims’ mobile phone SIM cards and to help them access their bank accounts and steal their money.
The problem has been highlighted after a couple’s foreign cruise holiday was ruined when they fell victim to the scam.
Stephen and Karen Ratchford, from Grimsby, Lincolnshire, had set off on a cruise last which turned into a nightmare after they fell victim to the SIM card scam.
The scammers took control of the Stephen’s phone which allowed them to take out several loans in in his name, including a £25,000 loan from HSBC.
Their ordeal began when Stephen’s phone was “SIM-jacked” while they were in Split, Croatia, which meant the fraudsters were able to take control of his phone and use two-factor authentication by text to control his bank account.
The scammers drained his bank account and applied for loans in his name.
Stephen, 64, said: “Some scammer got hold of new SIM cards with our numbers – which obviously meant we lost ours – and they had total control of our phone numbers.”
Martin Richardson, a partner at National Fraud Helpline solicitors, said: ‘”SIM-jacking”, also known as “SIM-swapping”, is a scheme where a malicious party transfers an unsuspecting victim’s phone number to a new SIM card, which allows them to access incoming security codes used to compromise personal accounts and change passwords.
‘Victims often feel helpless as it takes them a while to understand how the scammer is accessing their bank account and their money can disappear very quickly.
‘Anyone who falls victim to this scam should contact their banks immediately to block payments and contact their phone service provider.’
The couple’s mobile network provider, iD Mobile, has since issued them with an apology and increased its security measures.
The scammers were able to drain money from the couple’s joint bank accounts, take out loans and apply for overdrafts. Thankfully, they did not lose any money, as all banks involved began cancelling the loan and overdraft applications once the fraudulent activity was detected.
Have you lost money to a scam? Contact National Fraud Helpline. Call 0333 0033218 or fill out our Claim Form.