Already having our primary access points for code and infrastructure behind strong authentication requiring two factor authentication (2FA), we learned that SMS-based authentication is not nearly as secure as we would hope, and the main attack was via SMS intercept.
Somehow, the masses have been led to believe that phone numbers are inextricably bound to identities and therefore make good authentication tools. There’s a reason that Kraken has never supported SMS-based authentication: The painful reality is that your telco operates at the security level of a third-rate coat check. Here’s an example interaction:
Hacker: Can I have my jacket?
Telco: Sure, can I have your ticket?
Hacker: I lost it.
Telco: Do you remember the number?
Hacker: Nope, but it’s that one right there. 😉
Telco: Ok cool. Here ya go. Please rate 10/10 on survey ^_^