Security News > 2021 > September > AT&T lost $200M in seven years to illegal phone unlocking scheme
A Pakistani fraudster was sentenced to 12 years in prison earlier this week after AT&T, the world's largest telecommunications company, lost over $200 million after he and his co-conspirators coordinated a seven-year scheme that led to the fraudulent unlocking of almost 2 million phones.
Throughout this operation, Muhammad Fahd - the scheme leader - bribed multiple AT&T employees to do his bidding, including unlocking phones, giving him access to their credentials, and installing malware that gave him remote access to the mobile carrier's servers.
Starting with April 2013, the fraudster was forced to hire a malware developer to design malicious tools after AT&T introduced a new unlocking system that prevented corrupt employees from continuing unlocking phones on his behalf.
Throughout the scheme, Fahd and his co-conspirators used multiple shell companies to cover-up their illegal activity, including Swift Unlocks Inc, Endless Trading FZE, Endless Connections Inc, and iDevelopment Co according to the indictment.
Continued unlocking phones although aware of ongoing investigation.
"We're seeking damages and injunctive relief from several people who engaged in a scheme a couple of years ago to illegally unlock wireless telephones used on our network," AT&T said in a statement to GeekWire at the time.