Friend.Tech users' funds lost due to SIM-swap attacks

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Friend.Tech users' funds lost due to SIM-swap attacks

A wave of reported stolen accounts and the loss of funds via SIM-swap attacks and hacks are causing concerns about the security of Friend.Tech users' funds.

In an October 3 post on X, a victim, Daren, revealed how he was robbed and SIM swapped from 22 ETH.

Daren said that due to a series of spam calls, he enabled the silent mode on his phone. Due to this, however, he forgot a critical notification from Verizon regarding suspicious activity on his account. He added: 'It's something we can all learn from before we die,' he said.

Dipper, another victim, explained that their FT account was breached despite their use of a strong password. But the attacker could not stop the attacker, who siphoned all the keys and funds in the wallet to another. Dipper claimed to have lost 6.5 ETH to the incident.

Following the attacks, SlowMist founder Cos said Friend.Tech's centralization risks information leakage because the platform requires users to register with a mobile phone number, a Gmail email address, or an Apple account. He added: 'It's a pain in the ass,' he said.

Dune Analytics data shows that Friend.Tech has experienced a viral growth that has led to the total value of assets locked on the platform balloon to over 30,000 ETH, around $50 million.

These security concerns pose a significant threat to the funds of Friend.Tech users. Manifold's analysis suggests that a minimum of 20 million in the platform users' assets may be vulnerable to sim-swap attacks.