Canadian Woman Blames Security Lapse by Telecom Employee for Crypto Loss
Canadian woman Raelene Vandenbosch is embroiled in a multi-million dollar legal battle, alleging she lost 12.57969337 bitcoins, now valued at approximately $1,359,246, to a sophisticated SIM-swapping scam. Her lawsuit, filed against telecom company Rogers Communications and Match Transact Inc., attributes the devastating loss to a security lapse by a cellphone store employee.
According to a report citing Vandenbosch’s court filings, the elaborate scheme to hijack her digital assets unfolded on or about June 30, 2021. The central point of vulnerability was a WOW! Mobile Boutique (owned by Match Transact Inc.) kiosk in Montreal. A clerk at this kiosk allegedly answered a call from an individual posing as a Rogers technician.
This fake technician then convinced the unsuspecting clerk to share their computer screen, granting the hacker “unfettered access” to a Rogers customer database. Despite Vandenbosch residing across the country in British Columbia, the hacker, now privy to her account information, was able to download it onto a SIM card in their possession.
With this access, the hacker proceeded to assign Vandenbosch’s account to a new SIM card giving them control over her phone number, including her emails, text messages, Whatsapp, and other messaging services. Vandenbosch reportedly discovered the breach the following day when she found herself completely locked out of her phone number and mobile data.
The hacker, now in control of her digital identity, swiftly gained access to her cryptocurrency wallets on Ledger and Shakepay, ultimately pilfering all the bitcoins which were valued at $392,704.61 at the time.
Majority of Case Referred to Arbitration
Vandenbosch, pharmacy manager from Squamish, is suing for negligence, breach of privacy, and breach of contract. She accuses Rogers of failing to adequately bolster its security measures, despite being aware of the escalating risk of SIM swap scams since 2015. She further alleges Rogers failed to protect her privacy by granting kiosk workers excessive access to personal information and not enforcing mandatory verification questions. Match Transact Inc faces accusations of negligence and breach of privacy for failing to safeguard her personal data.
In response, neither Rogers nor Match has admitted or denied the allegations, instead advocating for the dispute to be resolved through private arbitration, citing an arbitration agreement Vandenbosch signed as part of her cellphone plan.
However, a recent B.C. Supreme Court decision by Justice Anita Chan has introduced a complex twist. While Justice Chan ruled on June 27 that the majority of the case must proceed to arbitration, she made an exception for the portion of Vandenbosch’s claim seeking a public admission of wrongdoing. This specific demand, the judge ruled, can proceed in open court due to its public interest implications.
Vandenbosch’s legal team, led by Alexia Majidi of Hammerco Lawyers, has reportedly not yet decided on the next steps while Vandenbosch declined to comment.
