Ga. Couple Sues T-Mobile After Losing $50,000 on SIM Swap
T-Mobile’s transfer of two customers’ cellphone numbers to a third-party device via a SIM swap, without their permission or authorization, allowed a fraudster to unlawfully access their accounts and steal more than $50,000, said a Friday negligence complaint (docket 1:24-cv-00627) in U.S. District Court for Northern Georgia in Atlanta.
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Plaintiffs Ashley and Sebastian Schanz allege the Feb. 9 SIM swap is not the first they have experienced with T-Mobile. After the first unauthorized SIM swap, the plaintiffs requested that T-Mobile not authorize SIM swaps on their accounts unless they were present, "in person, at a store with proper identification,” the complaint said. But on Feb. 9, it did just that, the complaint said. The Georgia residents are T-Mobile family cellphone plan subscribers.
As a result of the most recent unauthorized SIM swap, the fraudster accessed communications intended for the Schanzes, including security communications from their bank. These were used to unlawfully access their joint account and obtain a virtual card number used to transfer more than $50,000 to the fraudster’s Fan Duel account, the complaint said. Subsequently, several of the Schanzes' legitimate transactions, including payments to creditors, were returned “insufficient, leading to penalties and interest,” the complaint said.
The plaintiffs have suffered “severe worry, distress, confusion, and marital instability while trying to undo the damages” the unauthorized SIM swaps caused and recover the lost funds, the complaint said.
T-Mobile is “well aware” of SIM swaps dangers, the complaint said. It was sued “on numerous occasions” for allowing unauthorized SIM swaps. The company participates in the FCC’s proceedings on swaps and related port-out fraud, it added.
Despite “clear knowledge” of the harm of SIM swaps and the Schanzes' “direct request” that T-Mobile not authorize SIM swaps on their accounts “unless done in person with proper identification,” T-Mobile allowed the fraudster to overtake the plaintiffs’ cellphone number and direct "private, confidential financial communications” intended for them elsewhere, it said.
The Schanzes allege violations of the Communications Act, the Computer Fraud and Abuse Act and Georgia’s Identity Fraud Act, plus negligence, including negligence in the facilitation of the SIM swap and negligence in hiring. They seek compensatory, treble and punitive damages and reasonable attorneys’ fees and costs. T-Mobile didn’t comment.