"A German mobile security expert says he has found a flaw in the encryption technology used in some SIM cards, the chips in handsets, that could enable cyber criminals to take control of a person’s phone.

Karsten Nohl, founder of Security Research Labs in Berlin, said the encryption hole allowed outsiders to obtain a SIM card’s digital key, a 56-digit sequence that opens the chip up to modification. With that key in hand, Mr. Nohl said, he was able to send a virus to the SIM card through a text message, which let him eavesdrop on a caller, make purchases through mobile payment systems and even impersonate the phone’s owner..." Read more

Source: New York Times