An Alabama man, Eric Council, was arrested by the Justice Department for his involvement in hijacking the SEC’s Twitter account earlier this year. Council, along with other conspirators, aimed to manipulate Bitcoin’s value by gaining unauthorized access to the SEC’s Twitter/X account on January 9th. The hack involved a SIM swap, where a fraudster deceives a mobile carrier into transferring a victim’s phone number to a new SIM card, allowing them to control the victim’s phone.
Council, as detailed in the indictment, utilized an ID card printer to create a fake FBI employee ID and impersonated one to trick an AT&T employee into performing the SIM swap. By targeting an SEC employee with access to the Twitter account, Council and his associates successfully orchestrated the swap, enabling them to post false information about Bitcoin ETFs on national security exchanges. This deceptive act aimed to manipulate the value of Bitcoin for financial gain.
The illicit activities demonstrate the vulnerability of individuals’ personal information to cybercriminals, who use SIM swaps to hijack accounts and carry out fraudulent schemes. In response to the surge in SIM swapping attacks, the FCC is working on implementing new regulations at carriers to prevent such incidents. The ease with which fraudsters can conduct SIM swaps underscores the importance of safeguarding personal information and adopting security measures to mitigate risks.
Despite his efforts to mask his identity by posing as an FBI employee, Council was eventually apprehended by federal investigators. Details on how the FBI tracked him down remain undisclosed, but it is evident that Council’s internet activity played a role in his capture. Search queries for terms related to the SEC hack and FBI investigation indicated his awareness of potential legal implications. Council now faces charges of conspiracy to commit aggravated identity theft and access device fraud, carrying a maximum penalty of five years in prison if convicted.
The case serves as a cautionary tale about the consequences of engaging in cybercriminal activities and the importance of cybersecurity measures to protect against such threats. As technology evolves, individuals and organizations must remain vigilant in safeguarding their digital assets to prevent unauthorized access and manipulation by malicious actors. The arrest of Council highlights the collaborative efforts of law enforcement agencies to combat cybercrime and uphold the integrity of online platforms.