The Intercept says the revelations came from US intelligence contractor turned whistleblower Edward Snowden.
The Dutch company allegedly targeted - Gemalto - says it is taking the allegations "very seriously".
It operates in 85 countries and has more than 40 manufacturing facilities.
The Intercept says
that "the great Sim heist" gave US and British surveillance agencies
"the potential to secretly monitor a large portion of the world's
cellular communications, including both voice and data".
It says that among the clients of the Netherlands-based
company are AT&T, T-Mobile, Verizon, Sprint and "some 450 wireless
network providers around the world".
Full investigation
The Intercept alleges that the hack organised by Britain's
GCHQ and the US National Security Agency (NSA) began in 2010, and was
organised by operatives in the "Mobile Handset Exploitation Team".
Neither agency has commented directly on the allegations.
However GCHQ reiterated that all its activities were "carried
out in accordance with a strict legal and policy framework which
ensures that our activities are authorised, necessary and
proportionate".
How does the hack work?
Each Sim card has an individual encryption key, installed by
the chip manufacturer, that secures communications between the handset
in which it inserted and mobile phone masts.
This means that if anyone were to snoop on conversations or text messages, they would receive garbled, unintelligible data.
That is, of course, unless those carrying out the
surveillance get hold of the encryption key. With that information, they
can even decrypt previously intercepted communications.
However, this tactic only works for phone conversations and
text messages. Communications through mobile applications such as
Whatsapp, iMessage and many email services have separate encryption
systems.
The stolen encryption allowed the agencies to decode data that
passes between mobile phones and cell towers. They were able to decrypt
calls, texts or emails intercepted out of the air.
A Gemalto spokeswoman said the company was unable to verify
whether there had indeed been a breach, and highlighted that other Sim
manufacturers could also have been targeted.
She added: "We take this publication very seriously and will
devote all resources necessary to fully investigate and understand the
scope of such highly sophisticated techniques to try to obtain Sim card
data".
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