Decentralized applications can solve SIM exchange attacks

In the United States alone, more than USD 55 million has been stolen through SIM exchange attacks since 2018. NEM, a blockchain-based ecosystem, believes that decentralized applications (DApps) could provide a significant solution to this problem.

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According to NEM, they are working with a solution called FIX Network, which was established to help mobile subscribers secure their private keys and SIM card transactions.

The network leverages a blockchain-based protocol to support the security and privacy of mobile subscribers, NEM explained:

“This unique architecture will allow mobile operators to offer services such as digital identity management, crypto wallets and personal data firewalls, all enabled by the storage of private keys on subscribers’ SIM cards.

The goal is mass adoption
One of its features, FIX ID, aims to prevent fraudulent activity by identifying participants through global phone numbers owned by the subscriber.

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NEM expects mobile operators to be able to use the FIX Network to provide OTT services such as crypto wallets, mobile banking and identity management. However, they clarified that the FIX ID function will not be based on blockchain. Instead, it will be based on decentralized features that follow the FIX Network philosophy.

Edwin Terek, co-founder of FIX Network, provided some details about the purpose behind the solution:

“Our exhaustive search for a suitable platform led us to converge on the NEM Symbol blockchain, as we are confident that this technology includes the features, security, reliability and interoperability between private and public blockchain networks to meet our current and future requirements. We are proud of our technology partnership with NEM.

Blockchain Summit Global 2020 to be held September 3-4

Latest SIM exchange cases
Recently, Reggie Middleton, chief executive officer of the Crypto Investor company, Veritaseum, sued the telecommunications provider, T-Mobile, for allegedly allowing the theft of crypto coins worth USD 8.7 million in a series of SIM exchange attacks.

Trezor took advantage of the recent data breach suffered by Ledger to attack them
California’s Richard Yuan Li, 20, was charged on June 11 with conspiracy to commit electronic fraud for his role in the SIM exchange attacks. These attacks targeted at least 20 people. He was also charged with attempted extortion of a doctor who resides in New Orleans and is also a crypto currency investor known only as “Investor A”.