Karsten Nohl, founder of Security Research Labs in Berlin, told The New York Times that he has identified a flaw in SIM encryption technology that could allow an attacker to obtain a SIM card's digital key, the 56-digit sequence that allows modification of the card. The flaw, which may affect as many as 750 million mobile phones, could allow eavesdropping on phone conversations, fraudulent purchases, or impersonation of the handset's owner, Nohl warned.
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The U.N.'s Geneva-based International Telecommunications Union, which has reviewed the research, described it as "hugely significant."
Cracking SIM cards has long been the Holy Grail of hackers because the tiny devices are located in phones and allow operators to identify and authenticate subscribers as they use networks. (more)