Two residents of San Antonio, Texas have pleaded guilty to engaging in a crypto fraud scheme. Andrew Trujillo and Zena Dounson allegedly looked through various online channels as a means of scoping out people who had earned money through crypto investing.
Andrew Trujillo and His Partner Are Guilty
From there, they would choose specific targets and go in for the kill. Dounson – who worked at AT&T – used her employee credentials to sneak into the victims’ phones and conduct SIM swaps, a process that allows hackers to take control of users’ phones. From there, they were able to put the phones under the control of Trujillo, who took charge of the numbers and then the digital wallets attached to them.
SIM swapping is a dangerous tactic that has been utilized for years by hackers and malicious thieves seeking control of crypto funds. As many crypto traders have their accounts linked to their phones, they often check their balances, log into their accounts, and conduct business via mobile means. This makes it easy for hunters to garner funds through mobile data as there are so many individuals that incorporate their phones into their crypto habits.
Trujillo would utilize the “forgot password” option when seeking out ways to garner the funds from crypto investors. By doing so, reset links would be sent to him that he’d utilize to change their data and gain access to their accounts, allowing him and his counterpart to steal the money from there. Along with the help of co-conspirators, it appears the duo made off with more than $250K in Ethereum units.
Both attackers now face five years in prison each. They’ve been charged with wire fraud, along with conspiracy to commit computer fraud and abuse. Mike Zaroudny – chief information officer at One IT, Inc. – explained in an interview:
This situation, you know, it crosses a barrier. A lot of these theft deterrents or notification (programs) that are out there, people just don’t take advantage of [them].
Is Regulation Needed?
The situation has proven to be relatively constant in the world of digital currencies. Fraud and illicit behavior like this have been occurring since crypto first rose to fame roughly 13 years ago, and it appears that the topic of regulation has become a serious one due to these consistent instances.
It appears that many are against the idea of regulation, as it will permit prying eyes and third parties to enter an arena that was built on the ideas of autonomy and financial independence. However, it also seems that if there isn’t some level of regulation in the mix, these kinds of instances will continue, and thus crypto has no chance of ever reaching the mainstream status we all know it deserves and needs to fully thrive.
Source: https://www.livebitcoinnews.com/andrew-trujillo-and-zena-dounson-guilty-of-crypto-fraud/