A new scam has emerged that thieves have been using to steal
money from consumers. Called the Port Out Scam, it steals your phone number,
transfers it to a different cell phone service provider, then uses it to take
money from your bank accounts or make purchases using your bank or credit card
accounts.
In this scam, the scammer takes advantage of your ability to
change phone carriers and keep your old phone number, called porting in the
industry. The reason scammers want to do the porting is to get around two
factor authentication. Security experts have been encouraging the public to use
two factor authentication to safe guard online transactions. Two factor
authentication works like this; you log into your account, then the company/financial
institution sends a text message to your smart phone with a one-time code. You enter
that code into the login form online. That way, the company knows that you are
you.
The scammers obtain your phone number and may have collected
other personal information (such as your grandparents name, or other
information that may be used by companies to verify your identity) that they
can use to verify themselves as you. They contact your cell phone company and
change your password and possibility other verifying information. They then move
your phone number to another cell phone provider. If they have your bank account
information, this gives them the ability to tap them, even if they have two
factor authentication.
So far, this is a little-known problem. However, KIRO TV
news has found one victim in Everett and reports that the Redmond Police
Department is investigating 7 port out cases. Port out scams have been reported
in other parts of the U.S and even in Australia.
In the Everett case, the thieves took the T-mobile phone number
of the victim. And T-mobile has issued a text alert to some of its customers
about the scam. While T-mobile has received the publicity, this could happen to
any cell phone carrier.
To prevent port out scamming, security experts recommend
adding a PIN to your cell phone account. Ask your cell phone provider about
this option.
KIRO TV:
Check the end of this blog posting for links on security for
the four major cell phone providers-
New Jersey Cybersecurity & Communication Integration
Cell:
TmoNews:
news.com.au:
Scam Detector:
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