Security Failures Lead to $1.3M Bitcoin SIM-Swap Scam: Canadian Woman Takes Legal Action
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Security Failures Lead to $1.3M Bitcoin SIM-Swap Scam: Canadian Woman Takes Legal Action

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Azeez Mustapha

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Security breaches in telecom systems continue to enable devastating financial crimes, as demonstrated by a recent high-profile lawsuit. Raelene Vandenbosch, a Canadian pharmacy manager, is now fighting to recover over $1.36 million in Bitcoin lost to a sophisticated SIM-swap attack—a scam made possible, she alleges, by glaring security lapses at Rogers Communications and Match Transact Inc.

Security Failures Lead to $1.3M Bitcoin SIM-Swap Scam: Canadian Woman Takes Legal Action How the Bitcoin SIM-Swap Scam Unfolded

According to court documents, the attack began on June 30, 2021, when a hacker impersonated a Rogers technician and called a WOW! Mobile Boutique kiosk in Montreal. Shockingly, the employee allegedly granted the fraudster remote access to their computer, providing unrestricted entry into Rogers’ customer database.

Despite Vandenbosch residing in British Columbia, the hacker swiftly extracted her account details and downloaded them onto a fraudulent SIM card. Within hours, they seized control of her phone number, locking her out of critical services—including email, text messages, and WhatsApp.

By the next day, the attacker had infiltrated her Ledger and Shakepay cryptocurrency wallets, stealing 12.57969337 Bitcoin (then worth $392,704.61, now valued at $1.36 million).

Security Failures Lead to .3M Bitcoin SIM-Swap Scam: Canadian Woman Takes Legal Action

Legal Battle Exposes Critical Security Failures in Telecom Systems

Vandenbosch’s lawsuit accuses Rogers of negligence, citing its failure to strengthen security protocols despite being aware of SIM-swap risks since 2015. She further alleges the company granted kiosk employees excessive data access without proper verification safeguards. Meanwhile, Match Transact Inc. faces claims of privacy breaches for allegedly failing to train staff to prevent such scams adequately.

Neither defendant has admitted liability. Instead, they’ve pushed for private arbitration, citing a clause in Vandenbosch’s service agreement. However, in a pivotal June 27 ruling, B.C. Supreme Court Justice Anita Chan allowed one key exception: Vandenbosch’s demand for a public admission of wrongdoing may proceed in open court due to its broader implications for consumer protection.

Security Reforms Take Center Stage in Next Phase

With the majority of the case diverted to arbitration, Vandenbosch’s legal team, led by Hammerco Lawyers’ Alexia Majidi, must now strategize their next move. Meanwhile, this lawsuit underscores an urgent need for stronger telecom security measures—before more victims suffer similar devastating losses.

For now, Vandenbosch’s fight continues, serving as a stark warning about the real-world consequences of digital security failures.

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