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Former AT&T Worker Sentenced to 16 Months for SIM‑Swapping Scheme

The case shows how an employee’s misuse of carrier tools let criminals bypass SMS two‑factor authentication.

Overview

  • Kenneth Carter, 44, pleaded guilty to conspiracy to commit wire fraud and bank fraud and was sentenced on Wednesday, Sept. 9, 2026, to 16 months in federal prison with a $99,528 restitution order.
  • Prosecutors say Carter used his access at an AT&T retail store to transfer customers’ phone numbers to devices controlled by co‑conspirators so those criminals could receive bank verification texts and reset passwords.
  • Court records show at least three identified victims faced a combined intended loss of $593,963 and one victim had about $99,528 moved to a Portuguese bank account.
  • Investigators recovered victims’ personal identifying information during a November 2019 search of Carter’s Oregon residence, and federal agencies including the FBI, IRS‑CI, and FDIC OIG led the probe.
  • Officials say insiders were typically paid $1,000–$2,000 per swap while conspirators sought far larger wire transfers, a gap that highlights weaknesses in carrier controls and the limits of SMS‑based two‑factor authentication.