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10-Year Archive

Humanizing Tech

Diary of a Madman, Page 43

11,500 people peering inside, you’re one of the chosen.

I. This Week’s Analyses

II. T-Mobile Could Be How Hackers Steal Your Life Savings

A Note on Ethereum & Coinbase Fraud

Ethereum continues to set new records in terms of price and market cap, trading at almsot $180 over the weekend. That’s up from $10 in January. To put that into perspective, it’s highly likely it will hit $200 by June making it a 20x return in 6 months.

VC’s can raise another fund if they return even 5x on the last one. And 10x is a unicorn. But that usually takes 10 years. Doubling that performance in 1/20th of the time and you’ve got something special on your hands.

That is, of course, until someone goes in your bank account and steals it all.

Last week a hacker targeted me specifically. They convinced T-Mobile to change the SIM linked to my phone to a different one linked to one of their own phones. T-Mobile called me to verify. I told them absolutely not and that it was fraud. They went ahead with it anyways (I’m not making this up).

Now the hacker would get my SMS. Meanwhile my cell phone service completely shut off, which means my only phone didn’t work.

Then they reset the password on Gmail. Then they reset the password on coinbase. Then they transferred all my Ethereum to Litecoin (note that this is a currency developed by an employee of Coinbase) then they transferred that Litecoin to an unknown wallet. Then they pulled another $500 from my linked Chase bank account.

I have a few screen shots of what was happening as viewed from the notifications received in my Apple Mail account. Note the Opera on Windows browser/OS combo. That’s for anonymity. But also shows it’s real. I don’t use either, nor have touched a windows machine for well over a decade.

Note that the account my money was sent to via Litecoin is as follows:

LVY1K8aQ4KGCbDzdESU63jX5oDeT358pKM

So now we have two pieces of data, as well as tracing IP addresses and cross-referencing other attacks to triangulate the bad actors.

So where are we a week later?

Coinbase has been silent, save for one request for infromation, not giving me an answer to my queries on what they’re going to do after someone drained my account. T-Mobile gave me a $100 credit, which was the “limit” of what they could do. Haaaaaaa. Gmail isn’t immune either but they don’t have a phone number to call so I guess they get away free and clear. Chase Bank sent me a new, more secure card and reversed the $500 Coinbase transaction, thereby affecting Coinbase’s credit worthiness.

I know of another gentleman who’s entire wealth was drained from Coinbase as well.

So, if you’re relying on the industry standard 2-factor authentication, it won’t protect you in this case. If you rely on Apple’s Touch ID fingerprint, it won’t protect you in this case. The vulnerability is your cell phone provider. The attacker will just keep calling T-Mobile until one of the representatives is tired and just switches the SIM, even if you have a passcode on the account.

I wonder how many lawyers out there are focused on the cryptocurrency domain? Seems like a ripe opportunity for some hungry young attorneys. We’re reaching out to our friends at Fortune as well.

What should you do right now?

Go protect yourself. Call your cellular provider, make sure you have a secure pin in place, reset your security answer and tell them to double the security on your account. Patch the hole in the leaky ship first.

If you’re technical, here’s how legacy mathematic fraud detection algorithms work. Wonder how Biologic Intelligence would fare.

III. Newsworthy News

Sean

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Humanizing Tech is a premium technological think tank for building humanity’s future. It covers Biologic Intelligence, autonomous robotics, self-learning AI, superhuman augmentation, personal hedge funds, editable DNA, SAAS space platforms, personal power stations, and video as an app. This newsletter is a peek inside the Editor’s mind.


Diary of a Madman, Page 43 was originally published in Humanizing Tech on Medium, where people are continuing the conversation by highlighting and responding to this story.



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