Oregon Man Sentenced for Role in SIM Swapping Scheme Targeting Nearly $600,000

Kenneth Carter, a 44-year-old former employee of AT&T in Portland, Oregon, has been sentenced to 16 months in federal prison for his involvement in a SIM swapping conspiracy that aimed to defraud victims of approximately $593,963. In addition to his prison term, Carter has been ordered to pay $99,528 in restitution. He pleaded guilty on March 24, 2026, to one count of conspiracy to commit wire fraud and bank fraud, with the sentencing taking place on September 9, 2026.

Carter's scheme involved exploiting his insider access at AT&T, where he worked from May 2018 until his termination in November 2019. He facilitated unauthorized SIM swaps, allowing hackers to intercept victims' phone calls and text messages, including critical banking two-factor authentication codes. For each swap, Carter received between $1,000 and $2,000, and he admitted to performing additional unauthorized swaps beyond those documented in the charges against him.

One notable incident involved a fraudulent transfer of $99,528 to a bank account in Portugal controlled by his co-conspirators. Investigators discovered personally identifiable information belonging to the victims at Carter's residence, highlighting the extensive nature of the fraud. This case underscores the risks associated with insider threats in telecommunications and the significant financial losses that can result from such schemes.

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Source: KLEA News