friend.tech Users Fall Prey To SIM Swap Attacks

friend.tech users have been targeted by a series of SIM swap attacks that started over the weekend, raising concerns over the safety of user funds and the need for improved security measures.

Several users of the popular social app reported that their mobile phones were compromised, allowing the attackers to gain control and siphon off tens of thousands of dollars worth of ETH. Currently, any users who signed up using their phone numbers can be targeted by the scammers.

Manifold Trading, a firm that is building tools for the ecosystem, estimates that $20M of the project’s nearly $50M TVL remains at risk, and called for the team to immediately implement enhanced security measures.

friend.tech is an application that allows users to purchase "keys" of individuals who hold an account on X, granting access to private chat rooms. The SIM swap attacks targeted the users' mobile phones, which were then used by the hackers to take control of their friend.tech accounts and drain assets.

SIM swap attacks have become increasingly common in recent years, involving criminals tricking service providers into connecting a phone number to a SIM card under the hacker's control. Once the swap is complete, the compromised phone can be utilized for unauthorized access and fraudulent transactions.

The extent of the losses incurred by friend.tech users remain unclear as new cases continue to emerge.

The incidents once again highlight the importance of taking proactive steps to protect one’s digital assets. Users are advised to implement two-factor authentication using a hardware key or authenticator app, utilize hardware wallets, and remain vigilant regarding any suspicious activity on their mobile devices, email or cryptocurrency accounts.

TVL Drops

Total value locked in friend.tech has fallen by nearly 10% since peaking at $52M on Oct. 2. The platform saw its first day of net outflows since Sep. 21.