SIM-SWAP FRAUD: How Criminals Can Hijack Your Phone Number and  Empty Your Crypto Account

Nigerian cryptocurrency users have been urged to strengthen the security of their digital accounts as fraudsters increasingly exploit SIM-swap schemes to gain unauthorised access to financial and personal information.

SIM-swap fraud occurs when criminals manipulate mobile network operators into transferring a victim’s phone number to a SIM card under their control. Once successful, the perpetrators can intercept text-message security codes and use them to reset passwords or gain access to email, banking and cryptocurrency accounts.

Cybersecurity experts warn that cryptocurrency accounts are particularly vulnerable because access to associated email addresses and mobile numbers can provide criminals with opportunities to take over accounts and initiate unauthorised transactions.

To reduce exposure, users are advised to stop relying on SMS-based verification as their primary security measure. Authenticator applications, passkeys and hardware security keys offer stronger protection against SIM-swap attacks.

Users are also encouraged to secure their email accounts first, as email access can provide a route to resetting passwords on cryptocurrency exchanges and digital wallets.

Other recommended measures include storing backup codes securely offline, using withdrawal address allowlists where available, protecting National Identification Number (NIN) information and avoiding the disclosure of personal details to unverified individuals.

In Nigeria, SIM replacement procedures require NIN verification, while the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) have introduced a framework known as the Telecom Identity Risk Management System to help financial institutions identify phone numbers recently swapped, reassigned or flagged for suspicious activity

The report also cited NIBSS data indicating that Nigerian banks lost ₦25.85bn to electronic payment fraud in 2025.

Users who suddenly lose mobile network service without explanation are advised to contact their network providers immediately, notify their banks and cryptocurrency platforms, secure their email accounts and report suspected fraud to the police.

Financial security experts stress that protecting digital assets requires stronger authentication, careful handling of personal information and regular monitoring of account activity.