SIM swap fraud is becoming an increasingly common threat, and the recent appellate court decision in Terpin v. AT&T is a major development for victims seeking justice. This case sheds light on how telecom companies may be held accountable when they fail to safeguard sensitive customer data.
If you’ve experienced losses due to SIM swapping, explore your legal options—our team at Meyer Wilson Werning can talk you through the steps of your case and help those who have been wronged. Reach out today to discuss your next steps with us.
Key Legal Moments in the Terpin v. AT&T Case

Early Wins for the Plaintiff
Michael Terpin filed his lawsuit in 2018, targeting AT&T for its alleged failure to prevent unauthorized access to his phone number, which led to millions in stolen cryptocurrency. This was one of the earliest major lawsuits to address telecom responsibility in SIM swap cases.
-
Courts initially allowed Terpin’s case to proceed, rejecting AT&T’s attempt to dismiss it outright.
-
This early decision signaled that telecom companies could potentially be held responsible for lapses in protecting customer data.
The Case Took a Turn—Then Rebounded
The lower court later granted judgment in AT&T’s favor, which seemed to end the case. But Terpin appealed—and on September 30, 2024, the 9th Circuit Court of Appeals reversed the lower court’s decision.
This appellate ruling revived the lawsuit by finding that Terpin raised a valid issue regarding AT&T’s obligations under the Federal Communications Act (FCA). Specifically, the court emphasized that the FCA doesn’t just ban disclosure of private information—it also prohibits allowing access to it.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
What the Terpin Case Means for SIM Swap Victims
This legal development matters because it strengthens the potential for victims of SIM swap fraud to bring cases against telecom companies. It also highlights that such companies may be liable if they fail to prevent unauthorized access to customer data. This appeals court ruling is a big deal in the field for a few reasons:
-
It broadens the interpretation of telecom company responsibilities under federal law.
-
Victims may be able to claim attorney’s fees and other costs if they prevail.
-
It creates a precedent that future plaintiffs may rely on when suing telecom companies.
This case reinforces that customers shouldn’t bear the burden when telecom providers fail to protect them from fraud.
How SIM Swap Fraud Works—and Why It’s So Dangerous
SIM swap fraud happens when scammers convince a telecom provider to transfer your phone number to a SIM card they control. This gives them access to text messages, account logins, and more. It’s often the first step in larger identity theft or financial theft schemes.
Victims Can Face Serious Consequences
-
Financial loss: Victims may lose thousands—or even millions—through unauthorized transactions.
-
Emotional fallout: Feelings of helplessness, violation, and anxiety are common.
-
Identity theft: Stolen information can be used to open fraudulent accounts or drain investments.
Telecom companies are expected to have procedures in place to prevent this kind of exploitation. When they don’t, legal action may be the only path forward for many victims.
Our lawyers are nationwide leaders in investment fraud cases.
What Investors Should Take Away from the Terpin Case
The Terpin v. AT&T decision is more than just a legal technicality—it’s a call to hold powerful companies accountable. As SIM swap attacks continue to rise, this ruling sends a strong message: Telecom providers have a legal responsibility to protect your private information.
If you’re an investor who’s been affected by SIM swap fraud, know that there may be legal options available to you. Meyer Wilson Werning is committed to helping victims seek justice when a financial advisor or other party fails in their duty to protect your financial well-being. Contact us today to discuss your situation and explore your path forward.
We Are The firm other lawyers
call for support.
Frequently Asked Questions

What is SIM swap fraud?
SIM swap fraud is a type of scam where hackers gain control of a victim’s phone number by manipulating telecom providers, leading to unauthorized access to sensitive information.
How do I know if I was SIM-swapped?
If you suddenly lose cell service, receive texts about a port-out request, or see logins from unfamiliar devices, you may have been SIM-swapped. These are common tactics used to bypass two-factor authentication and access your crypto accounts.
Can I hold my mobile carrier liable for a SIM-swap?
In some cases, yes. Courts and arbitrators have awarded millions to victims when carriers failed to follow FCC security rules or acted negligently in handing over control of a phone number.
What steps can I take to prevent SIM swap fraud?
To prevent SIM swap fraud, consider the following measures:
-
Use two-factor authentication on accounts whenever possible.
-
Set up a PIN with your telecom provider to add an extra layer of security.
-
Monitor your accounts for suspicious activity regularly.
-
Be careful about sharing personal information online.
-
Use strong, unique passwords for your accounts.
What evidence should I collect right now?
Preserve anything that shows what happened—screenshots, transaction IDs (TXIDs), phone carrier logs, and any reports you filed with the police or IC3. This information will help prove your case during recovery or arbitration efforts.
Recovering Losses Caused by Investment Misconduct.