What Is a SIM Swap and Why Bitcoin Users Are Targeted

A SIM swap is a form of account takeover where an attacker convinces a mobile carrier to transfer your number to a SIM card they control. Once the number is moved, calls and texts—including many two-factor authentication codes—go to the attacker. With control of SMS, criminals can reset email and exchange passwords, bypass alerts, and break into accounts that depend on phone numbers as a security factor.

Bitcoin users are high-value targets because cryptocurrency transactions are final and irreversible. Attackers do not need to physically steal your device if they can redirect your phone number long enough to change passwords and drain an exchange account. Even if you self-custody with a hardware wallet, a SIM swap can expose linked emails, personal data, or cloud backups of recovery phrases and can enable social engineering against your bank, exchange, or contacts.

The core lesson: a phone number is not an identity document, and SMS is not a secure second factor for Bitcoin security.

How SIM Swaps Happen in Canada

The mechanics of a SIM swap are similar worldwide, but Canadian details matter. Carriers like Rogers, Bell, and Telus facilitate legitimate number transfers when customers upgrade phones, switch to eSIM, or port to new providers. Criminals exploit these processes by collecting your personal data through phishing, data breaches, or public profiles, then persuading carrier support to move your number. The attacker may also use in-store social engineering, fake identity documents, or compromised insider access.

Common pathways include:

• Phishing emails or texts that trick you into revealing account numbers, one-time codes, or personal info.
• Call center deception using partial data from old breaches or public records to pass verification questions.
• In-person fraud where the attacker convinces a retail associate to activate a new SIM or eSIM with your number.
• Account recovery loops where attackers reset your email using SMS, then reset your exchange using the newly recovered email.

Because many Canadian financial institutions and exchanges still support SMS-based resets, a single port-out can cascade into multi-account compromise. Bitcoin users should therefore reduce their reliance on numbers for authentication and harden carrier accounts against unauthorized changes.

Your SIM Swap Threat Model as a Bitcoin Holder

Security should be proportional to risk. Consider where your Bitcoin is held and how your accounts are protected:

• Exchange-only users: Your primary risk is an attacker draining balances after hijacking SMS-based logins or password resets.
• Self-custody users with mobile wallets: If your seed phrase or cloud backups are exposed and your email is compromised via SIM swap, you could lose funds or privacy.
• Hybrid users: Attackers can pivot between exchange accounts, emails, and financial apps to find the weakest link.

Your defense plan should shift critical authentication away from SMS, protect email accounts with strong factors, and ensure Bitcoin keys never depend on phone-based access for restoration.

Carrier-Level Protections Canadians Can Enable

Start by reducing the probability that your number can be ported or reactivated without your consent. While procedures vary by provider, these steps reflect best practices you can request in Canada:

• Enable a strong account PIN or passcode that is required for all changes, including SIM swaps, eSIM activations, and ports.
• Ask for a port validation lock that blocks number transfers without in-person presentation of government ID or additional verification.
• Add an account note that no changes are permitted via phone support and that all modifications require in-store verification with ID.
• Turn on change alerts for SIM, eSIM, and account details. Request immediate SMS and email notifications for any modification.
• Remove unused lines, ensure billing address accuracy, and minimize public exposure of the number tied to your crypto accounts.

If you operate a business that accepts Bitcoin, consider a dedicated line not publicly listed for customer inquiries. Separate public contact numbers from the line that protects your financial accounts.

Modern Authentication That Beats SIM Swaps

The best way to neutralize SIM swaps is to remove SMS from your security chain. Replace SMS with phishing-resistant factors and offline-safe practices.

Use FIDO2 Security Keys and Passkeys

Hardware security keys that support FIDO2 or WebAuthn provide a strong, phishing-resistant factor that attackers cannot redirect with a SIM swap. Many services now support passkeys, which are built on similar standards and can be secured with device biometrics. Keep at least two keys: a primary and a backup, stored separately.

• Register two physical keys to your email and exchange accounts and store one in a safe location.
• Record recovery codes offline. Treat them like partial keys and do not save them in cloud notes.
• For accounts that support passkeys, enroll them on secure devices protected by a strong device passcode and hardware-backed encryption.

Prefer TOTP Apps Over SMS

If a service does not support FIDO2, choose a time-based one-time password app instead of SMS. Use an authenticator that allows encrypted, offline exports so you can back up your tokens without the cloud. Store TOTP backups in a safe with your other Bitcoin recovery materials.

Harden Your Primary Email

Your email is the reset gateway for exchanges and financial apps. Protect it as if it were a wallet:

• Enable FIDO2 keys or passkeys and disable SMS recovery where possible.
• Set a strong, unique password. Use a reputable password manager with a strong master passphrase.
• Create a separate email address for Bitcoin-related accounts. Do not share it publicly or reuse it for newsletters.

Bitcoin Self-Custody With Phone Risk in Mind

Self-custody reduces exchange risk, but it must be executed in a way that does not depend on your phone number or mobile device accounts. Align your wallet setup with these principles:

Keep Private Keys Off Connected Devices

Use a hardware wallet to generate and store keys offline. Confirm addresses on the device screen. Avoid mobile-only hot wallets for large balances. If you need spending on the go, keep a small hot wallet balance and treat it like cash in a physical wallet.

Protect the Recovery Phrase From Cloud Exposure

Never take photos of your seed phrase and never store it in cloud drives or email drafts that could be reset with a SIM swap. Write the phrase on durable media and consider metal backups for resilience against fire and water. For extra protection, add a BIP39 passphrase that is stored separately from the seed.

Consider Multisig for Higher Balances

A well-designed multisig vault reduces single points of failure. Even if an attacker breaches your email or phone, they still cannot spend without additional keys. Keep at least one key completely offline and store the quorum information in your written recovery plan.

Securing Canadian Exchange Accounts Without SMS

If you buy or sell Bitcoin through Canadian platforms such as Bitbuy or Coinsquare, review your security settings and eliminate SMS wherever you can. While each platform differs, use this checklist as a baseline:

• Turn on FIDO2 security keys or passkeys for login and withdrawals if available.
• Enable TOTP as the fallback factor and store the setup secret offline. Do not rely on SMS codes.
• Set a strong, unique password and avoid password reuse across exchanges or email.
• Whitelist withdrawal addresses where supported. Confirm whitelisting requires a cooling-off period and strong authentication.
• Review account recovery options and remove phone-based resets. Favor recovery codes and secure email.
• Withdraw to self-custody after trades settle. Reducing custodial balances lowers the impact of account compromise.

Interac e-Transfer and Banking Considerations

Many Canadians fund crypto purchases via Interac e-Transfer. A SIM swap can be paired with email compromise to approve fraudulent transfers or change deposit notifications. Reduce this risk by separating your banking email from your Bitcoin email and by enabling strong second factors at your bank that do not rely on SMS. Be cautious about meeting strangers to complete peer-to-peer trades. Use official exchange channels and verify payee details carefully before sending funds.

Device Hygiene: Hardening the Smartphone Itself

Even with superior authentication, device hygiene matters. Treat your phone like a security token and limit its exposure.

• Use a long device passcode and enable biometric unlock with a fallback that is hard to guess. Avoid simple patterns or short PINs.
• Keep the operating system updated and remove unused apps that request sensitive permissions.
• Disable SIM toolkit or carrier apps you do not use, and review permissions for messaging apps.
• Do not store seed phrases, exchange recovery codes, or wallet backups on the phone.
• Use a separate device for signing when possible. Consider an air-gapped approach for larger holdings.

A 30-Minute SIM Swap Hardening Plan

If you only have half an hour, you can still significantly reduce risk. Work through this rapid plan today:

1. Call your carrier to add a strong account PIN and request a port validation lock. Ask that all changes require in-person ID.
2. Disable SMS-based two-factor on email and exchange accounts. Switch to FIDO2 keys or TOTP.
3. Add a second FIDO2 key as backup. Store it with your Bitcoin recovery materials.
4. Create a new, private email address for Bitcoin accounts. Update your exchange profile to use it.
5. Write down recovery codes for email and exchange logins and store them offline.

Building a Full Incident Response Plan

Preparation turns panic into action. Document a step-by-step plan, practice it twice a year, and keep a printed copy with your backups.

Early Warning Signs

• Sudden loss of cellular service, especially if Wi-Fi still works.
• Unfamiliar emails about password resets or new device sign-ins.
• Carrier notifications about SIM changes or eSIM activations you did not request.

Immediate Actions

• Contact your carrier using a landline or another device. Report a suspected SIM swap and request an immediate freeze.
• Log in to your primary email from a trusted device and rotate passwords. Invalidate active sessions.
• Check exchange and banking accounts. If you see suspicious activity, contact the platform’s support right away.
• If funds are at risk, move Bitcoin from hot wallets to a pre-prepared cold address that you control.

Who to Inform in Canada

Report the incident to the Canadian Anti-Fraud Centre and your local police service. If your bank or exchange requests documentation, keep ticket numbers and timelines. If you operate a business registered with FINTRAC obligations, follow your compliance playbook and document suspicious activity reports as required.

Post-Incident Reset

• Rotate all passwords and regenerate recovery codes.
• Reissue your SIM or eSIM in person with verified ID and ensure the port lock remains in place.
• Review every account that used the compromised number for login or recovery and remove phone-based resets.

Privacy Practices That Reduce SIM Swap Exposure

Attackers need your personal data to pass verification gates. Reduce your public footprint and compartmentalize contact points.

• Do not publish the number tied to financial accounts. Use a separate public contact number for business or social profiles.
• Opt out of data broker listings when possible and limit the personal details you share online.
• Be skeptical of inbound calls. Hang up and dial the carrier’s published number yourself before sharing any information.
• Use email aliases for newsletters and public registrations. Keep your Bitcoin email private and unique.

For Families and Small Businesses: Shared Responsibility

Households and small Canadian businesses that use Bitcoin should standardize protections. Criminals often target the least prepared member of a family or team to pivot into shared accounts.

• Issue two FIDO2 keys per person and keep a third as a team recovery key in secure storage.
• Document who controls which email addresses, domains, and exchange accounts. Eliminate SMS resets across the board.
• For business custody, consider multisig with role separation. Never allow a single employee’s phone number to act as a recovery choke point.
• Run a tabletop exercise twice a year where you simulate a SIM swap and walk through the response plan.

Common Myths About SIM Swaps

Myth 1: A new phone model prevents SIM swaps

Hardware improvements help, but SIM swaps exploit carrier processes and identity verification, not device hardware. Your defenses must focus on authentication and carrier policy.

Myth 2: Using eSIM solves the problem

eSIM can be more convenient, but carriers can still activate a new eSIM on another device if an attacker passes verification. Keep the same protections and port locks in place.

Myth 3: Only high-net-worth holders are targeted

Attackers automate and scale. Smaller balances are also targeted, especially during market volatility when users are distracted and willing to respond to urgent messages.

A Practical Canadian Checklist

• Carrier: Add a strong PIN, request a port validation lock, and require in-store ID for changes.
• Email: Enable FIDO2 or passkeys, remove SMS recovery, and use a private address for Bitcoin accounts.
• Exchanges: Use hardware keys or TOTP, whitelist addresses, and withdraw to self-custody after trades.
• Wallets: Keep seeds offline, consider a BIP39 passphrase, and use multisig for higher balances.
• Banking and Interac: Separate emails, enable non-SMS factors, and verify payee details carefully.
• Response: Print your incident plan and keep it with your backups. Practice twice a year.

Putting It All Together

A robust Bitcoin security posture in Canada starts with the assumption that phone numbers are not trustworthy identity factors. By locking down your carrier account, eliminating SMS from authentication, and protecting your self-custody setup from cloud or device dependence, you make SIM swaps dramatically less effective. Combine strong factors like FIDO2 keys with disciplined email hygiene, and you close the most common paths attackers use to reach exchange balances or personal wallets.

Security is an ongoing habit rather than a one-time project. Review your setup quarterly, update your recovery plan after any account change, and keep your skills sharp with simple practice drills. Bitcoin rewards those who take ownership seriously. With this playbook, you can enjoy the benefits of cryptocurrency while keeping phone-based risks in check.