SIM swap scam leads to prison term

TDT | Manama

Email: mail@newsofbahrain.com

A 36-year-old Bahraini man has been sentenced to three years in prison and fined BD 3,000 by the High Criminal Court after being convicted of hacking a businessman’s financial application account and fraudulently transferring BD 2,490 from his bank account.

The court upheld an earlier ruling, finding that the defendant unlawfully accessed the victim’s electronic banking services, used verification codes sent to a mobile number linked to the account, and executed unauthorized money transfers.

According to the Public Prosecution, the defendant illegally used the victim’s electronic signature—represented by one-time verification codes used to activate the BenefitPay app and linked banking services—to carry out fraudulent transactions. He was also charged with unlawfully accessing an information system and transferring funds without authorization.

Power of attorney misused  

Court documents show that the victim, a 42-year-old Gulf businessman, had granted the defendant limited power of attorney to manage specific administrative matters in Bahrain, including opening bank accounts. However, he was not authorized to manage funds or access the victim’s personal phone number.

The defendant allegedly exploited the victim’s absence from Bahrain to obtain a replacement SIM card registered in the victim’s name. This allowed him to receive banking verification codes and gain access to the victim’s account.

Unauthorized SIM replacement  

The court heard that the victim later discovered his SIM card was not functioning upon arrival in Bahrain. A telecom provider issued a replacement SIM, but it later emerged that another replacement SIM had already been issued earlier the same day without the victim’s knowledge.

Using the active SIM linked to the victim’s banking services, the defendant carried out two transactions totaling BD 2,490—transferring funds to his own account and to his daughter’s account.

The victim realized something was wrong after attempting to use his banking application while abroad and finding insufficient funds. Upon contacting his bank, he was informed of transactions made through the mobile banking app using verification codes sent to his number.

Banking investigation 

A financial compliance official testified that the account was activated using SMS verification codes sent to the linked number. Within 30 minutes, two separate transfers were made—BD 1,490 and BD 1,000—each requiring authentication.

Investigators confirmed that both transactions were authorized using access to the victim’s mobile-linked verification system, and records showed the beneficiaries were the defendant and his daughter.