My phone lost service at 8 PM on a Friday. I thought it was a glitch. By 8:15 PM, my Gmail password was changed. By 8:30 PM, my Coinbase was drained of $20,000. Someone had impersonated me at the T-Mobile store, ported my number to their SIM, and used “Forgot Password” SMS codes to take my life.
Key Takeaways
- Carriers Are Not Liable: You signed a contract saying T-Mobile isn’t liable for “unauthorized access” or security failures. You can’t easily sue them.
- SMS 2FA is the Vulnerability: If your 2FA is text-based, a SIM swap gives the hacker the keys to the castle. You must switch to Authenticator Apps or Hardware Keys.
- Cyber Insurance (Personal) helps: Some Personal Cyber policies cover “Digital Theft” or “Funds Transfer Fraud,” but the limits are often low (
10k−10k−25k). - Identity Theft Insurance is Weak: ID Theft insurance covers fixing your credit score. It rarely reimburses stolen crypto or cash.
The “Why” (The Trap): The “Voluntary Transfer” vs “Computer Fraud”
If the hacker logs in and sends the money, insurance argues: “The credentials were used correctly.”
However, better Cyber Insurance policies have “Social Engineering” or “Computer Fraud” clauses.
- Computer Fraud: Someone hacked the system (SIM swap counts).
- Social Engineering: You were tricked.
You need to verify your policy covers “Theft of Funds via Unauthorized Access.” NOTE: Crypto is often specifically excluded or sub-limited to $1,000.
The Investigation: “I Called Them”
I checked how to insure my crypto and accounts.
1. Coincover / Breach Insurance
- The Product: Specific insurance for crypto wallets.
- The Verdict: If you use a partner wallet (like BitGo), it’s insured. If you use a standard hot wallet, it’s hard to get coverage.
2. Homeowners Cyber Endorsement
- The Verdict: Most cap “Digital Currency” loss at $500. Useless for a $20k loss.
3. Creating “The Wall”
- The Solution: Not insurance, but prevention. Porting your number to Google Voice or Efani (secure carrier).
- Cost: Efani costs $99/mo but guarantees protection against SIM swaps.
Comparison Table: SIM Swap Defense
| Strategy | Cost | Effectiveness | Insurance Payout |
| Standard Carrier (T-Mobile) | $50/mo | Low (Retail employees bribed) | $0 |
| Secure Carrier (Efani) | $100/mo | High (11 layers of verification) | Insurance Included ($5M) |
| Hardware Key (YubiKey) | $50 (Once) | Very High (Stops the hack) | N/A |
| Personal Cyber Policy | $20/mo | Medium | ~$25k Limit |
Step-by-Step Action Plan
- Get a YubiKey: Buy two. Register them to your Google and Cloud accounts. Turn off SMS 2FA. If they swap your SIM, they still can’t get in without the physical key.
- Call Your Carrier: Ask to set a “Port Freeze” or “High Security PIN” on your account. It adds a layer of friction.
- Separate Your 2FA Number: Do not use your public phone number for 2FA. Use a Google Voice number that is locked behind a YubiKey-secured Google Account.
- Buy Personal Cyber: Check companies like Blink or add it to your high-net-worth home policy (Chubb). Look for “Funds Transfer Fraud” coverage.
FAQ
Q: Can I get my crypto back?
A: Almost never. The blockchain is immutable. Once sent, it’s gone. Insurance is the only way to be made whole.
Q: Why did the carrier let them switch my SIM?
A: Hackers often bribe retail store employees $500 to override the security. It’s an “insider threat.”
[IMAGE: Photo of two YubiKeys (USB-C and NFC) next to a smartphone.]