The Phone Scam That Could Wipe Out Your Bank Account—And How to Stop It

Imagine waking up one morning, trying to check your texts, and realizing your phone isn’t working. Weird, right? Now imagine finding out a few hours later that someone drained $38,000 from your bank account. That’s not just a bad day—it’s a complete nightmare.

This is exactly what happened to Justin Chan, a Carlsbad resident who fell victim to a sophisticated scam called SIM swapping. If you’ve never heard of it before, don’t worry—you’re not alone. But after hearing Justin’s story, you’ll know exactly what to watch out for and how to protect yourself.

What Happened to Justin?

One night, Justin noticed some strange notifications on his phone. Suddenly, it wasn’t working—no calls, no texts, just a little “SOS” in the corner where the signal bars should be. At first, it seemed like a glitch, but the reality was way worse.

Here’s what happened:

1. The SIM Swap: Scammers called his phone carrier, Xfinity Mobile, pretending to be him. They convinced the company to transfer his phone number to their device, using only the last four digits of his credit card as “verification.” (Yes, that’s all it took.)

2. Locked Out: With control of his phone number, the scammers intercepted all his calls and text messages. Justin couldn’t use his phone at all.

3. Bank Account Wiped: The scammers used his phone to bypass two-factor authentication and initiate three wire transfers totaling $38,000 from his Bank of America account—all while he was asleep.

4. Email Hijacked: They even got into his email, deleting notifications from the bank so Justin wouldn’t notice the transactions right away.

When Justin woke up and pieced it all together, he was devastated. His bank initially refused to reimburse him, claiming the transactions had been “confirmed valid” via text—texts he never even saw. Thankfully, after pressure from investigative reporters, Bank of America reopened his case, but Justin is still waiting for a resolution.

What Is SIM Swapping?

SIM swapping is a high-tech scam with low-tech entry points. Here’s the gist: scammers trick your phone carrier into transferring your number to their SIM card. Once they have control of your number, they can:

• Bypass Two-Factor Authentication (2FA): You know those codes your bank sends to verify your identity? They’re now sent straight to the scammer.
• Access Email and Financial Accounts: With your number, they can reset passwords for your email, bank accounts, and anything else linked to your phone.
• Cause Major Havoc: Scammers can clean out your bank account, lock you out of your email, and even take over your social media accounts.

How to Protect Yourself

The good news? You can protect yourself from SIM swapping with a few simple steps:

1. Set Up a PIN or Passcode with Your Carrier– Call your phone provider and ask them to add a PIN to your account. This means no one can make changes (like transferring your number) without providing the code. It’s an easy, effective way to stop scammers in their tracks.

2. Use App-Based Authentication Instead of SMS – Switch from SMS-based 2FA to app-based options like Google Authenticator or Authy. These apps generate codes on your device, so scammers can’t intercept them.

3. Strengthen Your Passwords – Use strong, unique passwords for your email, banking, and other important accounts. A password manager like 1Password or Dashlane can help you keep track of them.

4. Monitor Your Accounts Regularly – Keep an eye on your bank accounts and credit reports. If something looks off, act fast.

5. Be Cautious with Personal Info – Scammers often gather details (like your address or credit card digits) from public sources. Be mindful of what you share online.

Why Justin’s Story Should Be a Wake-Up Call

Justin Chan’s ordeal is a powerful reminder of how vulnerable we can be in a world where our phones are the keys to our digital lives. One moment, everything seems fine; the next, your accounts, your email, and your savings are in someone else’s hands.

The good news? This doesn’t have to happen to you. By taking a few simple precautions—like setting up a PIN with your phone carrier, switching to app-based two-factor authentication, and using strong, unique passwords—you can make it much harder for scammers to target you.