Businesses should take reasonable steps to protect sensitive data from cyberattacks, reduce financial risk, support compliance obligations, and preserve customer trust. One commonly recommended safeguard is multifactor authentication (MFA), where a user provides two or more proofs of identity to access an account, device, or application.
While MFA significantly improves security, not every method offers the same level of protection. SMS-based authentication, for instance, involves entering a one-time PIN sent to a user’s phone via text message. Unfortunately, cybercriminals are actively exploiting this method through an attack called SIM swapping, which can help them intercept login codes and gain access to accounts that rely on SMS-based verification.
In this blog post, we will explore what this technique is, how it works, how it can impact businesses, and practical steps organizations can take to reduce their exposure. We will also explain how a managed security services provider like Techmedics can help strengthen defenses against SIM swapping and related account takeover risks.
Also known as SIM hijacking or simjacking, SIM swapping is a tactic where a cybercriminal tricks a wireless network operator, such as T-Mobile or Verizon, into transferring a victim’s mobile number to a new SIM card under the attacker’s control. This allows the attacker to intercept authentication codes, access online accounts, and commit fraud.
In 2024 alone, the FBI logged 982 complaints associated with SIM swapping attacks, recording a total loss of $26 million.
Here’s how threat actors typically carry out SIM swapping:
Scammers often begin by gathering information about a victim through social engineering, phishing, or publicly available data.
For instance, they might pose as a business partner or a colleague and send an email asking the recipient to verify their personal details (e.g., name, date of birth, mobile number) to update company records or resolve an urgent issue. They may also obtain information through known data breaches.
After successfully obtaining the necessary personal information, the cybercriminals will impersonate the victim and contact their mobile carrier, claiming they lost their phone or need to activate a new SIM card. If the network operator falls for this, they’ll transfer the victim’s phone number to the scammer’s SIM card, deactivating the old one.
With control of the victim’s phone number after the SIM transfer, cybercriminals can now access calls and text messages and receive verification codes from banks, online platforms, and other services.
For example, they can capture SMS-based MFA codes that businesses may rely on to secure access to critical systems. If the affected accounts lack stronger safeguards, attackers may be able to access emails, shared drives, or user accounts tied to the compromised identity.
SIM swapping does not always stop at account access. Depending on the systems tied to a phone number and the controls already in place, it can threaten businesses in several ways, including:
Because SIM swapping can allow attackers to intercept SMS authentication codes, it may help them access HR or payroll systems if those accounts rely on SMS-based verification and lack stronger safeguards. In that scenario, attackers could attempt to change employee bank details or divert payments to fraudulent accounts.
Moreover, attackers can impersonate finance staff or executives through hijacked email accounts to trick vendors or clients into wiring money into fraudulent channels.
Businesses that hold cryptocurrency assets may face heightened risk from SIM swapping, particularly when wallet access or recovery flows depend on SMS-based authentication. Cybercrime groups have reportedly stolen millions of dollars by intercepting wallet access codes. In fact, T-Mobile was ordered in 2025 to pay $33 million after a SIM swapping attack that led to the theft of $165 million in cryptocurrency in 2020.
Once an attacker bypasses login protections through SIM swapping, they may be able to access business applications, cloud accounts, or sensitive data tied to the compromised identity. Depending on the user’s permissions and the organization’s controls, this can create opportunities to steal intellectual property, customer records, or internal files.
After exfiltrating confidential files, threat actors may attempt ransomware-like extortion by threatening to publish or sell stolen data unless the business pays a large ransom, often requested in cryptocurrency.
If threat actors gain access to a business’s systems, they may be able to reset passwords or change recovery details, which can prevent legitimate staff from accessing cloud platforms, email, or collaboration tools. This can disrupt productivity and slow day-to-day operations.
As a result, critical processes such as payroll runs, client communications, or other workflows may be interrupted. In some cases, this can contribute to costly downtime, reputational harm, or customer dissatisfaction.
Data breaches connected to SIM swapping can create compliance concerns, particularly for organizations that handle regulated data or financial information.
For example, stolen patient records or disrupted access to medical systems can raise HIPAA compliance concerns for healthcare organizations. Incidents involving regulated health information may lead to regulatory review, penalties, or other consequences depending on the facts of the case.
Similarly, businesses that rely solely on SMS-based authentication for critical access may struggle to meet evolving security expectations under PCI DSS. Depending on the circumstances, this could increase compliance risk or affect merchant account standing.
To mitigate the risks caused by SIM swapping, businesses can enforce the following safeguards:
Companies can also partner with a managed security services provider (MSSP) like Techmedics. We help implement layered security controls across systems and design admin access policies that are harder for attackers to exploit. With 24/7 monitoring, suspicious activity such as unusual login attempts or mass password resets can be flagged earlier so teams can investigate and respond before issues escalate.
Request a consultation today with Techmedics to see how we can reduce the risk of SIM swapping and other cyberthreats.
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