Have you ever received a text message claiming to be from your bank, an odd message from the IRS, someone claiming that you’ve won a jackpot, or perhaps a text saying that your new account needs to be verified (even though you didn’t open a new account)?
If so, you’ve been a victim of smishing, a dangerous phishing attack that targets mobile phone users through SMS text messages, using carefully crafted messages to imitate trusted sources.
Smishing attacks can be difficult to spot, as they often appear to come from reputable sources like banks, government agencies, or well-known companies. However, falling victim to a smishing scam can have serious consequences, from identity theft to financial fraud.
Today, we’ll discuss smishing, how it works, common examples, and how you can protect yourself from it.
So, what is smishing in cybersecurity, and how might it affect you?
Contents
- Key Takeaways
- What Is Smishing?
- How Does Smishing Work?
- Types of Smishing Attacks
- Smishing vs. Phishing vs. Vishing
- How to Protect Yourself from Smishing Attacks
- What to Do if You Fall Victim to a Smishing Attack
- How Can Businesses Protect Against Smishing?
- The Bottom Line on Smishing Scams
- Frequently Asked Questions
Key Takeaways
- Smishing is a type of phishing that uses SMS text messages to trick recipients into revealing sensitive information or downloading malware.
- Smishing attacks often involve messages claiming to be from trusted sources like banks, government agencies, or popular companies.
- Different types of smishing scams include account verification, lottery scams, tech support scams, and fake package delivery notifications.
- Smishing can lead to severe consequences like financial fraud, identity theft, and the spread of malware.
- To protect against smishing, be cautious of unsolicited messages, verify senders, and use security tools like anti-malware software and multi-factor authentication.
What Is Smishing?
Smishing is a phishing attack that uses SMS text messages to trick victims into revealing sensitive information or taking actions that compromise their security. The term “smishing” is a combination of “SMS” (short message service) and “phishing.”
In a smishing attack, cybercriminals send deceptive text messages that appear to be from legitimate organizations, such as banks, government agencies, or popular brands.
These messages often create a sense of urgency or curiosity, often using an “act now, or else” approach, prompting the recipient to click on a malicious link, reply with personal information, or download malware onto their device.
It is interesting to note that according to Carnegie Mellon University, only 35% of the population knows what smishing is. Yet in 2023, upwards of 75% of organizations were victims of smishing attacks, with upwards of 61% of organizations suffering serious financial losses due to smishing attacks.
In terms of the individual, smishing attacks, on average, result in financial losses of $800, a substantial amount, with over 30% of all mobile phone users being targeted quarterly.
Furthermore, according to RoboKiller, in December 2023 alone, over 300,000 spam messages were received every minute, accounting for 19 billion spam messages over the course of the month, the vast majority of which were smishing scams.
Seeing as data breaches rose by over 70% from 2021 to 2023 and are predicted to only keep rising, being aware of smishing scams and how to spot them is now more important than ever before.
With the basics covered, let’s move on and find out how smishing works.
How Does Smishing Work?
Smishing attacks follow a well-planned process to deceive targets into revealing sensitive information or compromising their devices. They start with finding the right target and crafting a well-thought-out message.
Here’s how a typical smishing attack unfolds:
1. Target Selection
Attackers randomly select their targets, using lists of phone numbers purchased on the dark web or, more strategically, using data obtained from previous data breaches. This targeted approach allows them to craft more personalized and convincing messages.
2. Crafting the Message
Smishers create deceptive text messages designed to evoke a strong emotional response, such as urgency, fear, or curiosity. To lend credibility to their messages, they often impersonate trusted entities like banks, government agencies, or well-known brands. These messages typically include a call to action, such as clicking a link, replying with personal information, or calling a phone number.
3. Message Delivery
Using various tools, such as SMS gateways, spoofing software, or even infected devices, attackers send crafted smishing messages to their targets’ mobile phones. These tools allow them to mask their true identities and make the messages appear to come from legitimate sources.
4. Interaction
Upon receiving the deceptive message, the victim is prompted to take action. They may click on a provided link, leading to a phishing website designed to steal their login credentials or other sensitive data. Alternatively, they might be asked to reply with personal information or call a phone number, connecting them directly to the scammer.
5. Data Collection or Malware Deployment
If the victim falls for the scam and enters their information on a fraudulent website, the attackers capture and collect this data for future use, such as identity theft or financial fraud. In some cases, clicking on the link may also trigger the download of malware onto the victim’s device, allowing the attackers to gain remote access or steal data directly from the phone.
Now that we know what smishing is and how it works, let’s look at the most common examples of smishing attacks you might face.
Types of Smishing Attacks
Cybercriminals employ various tactics to make their smishing messages appear legitimate and trick you into divulging sensitive information or performing actions that compromise security. Some of the most prevalent smishing attacks include account verification, lottery, bank fraud, and tax scams.
Some common types of smishing attacks include:
Account Verification Scams
In this type of attack, you receive a text message claiming to be from a reputable company or service provider, such as a bank, social media platform, or online retailer.
The message typically states that your account is having an issue or that suspicious activity has been detected, urging you to verify your account details by clicking on a provided link or calling a phone number.
However, the link leads to a fake website designed to steal your login credentials, while the phone number connects you to a scammer posing as a customer service representative.
Prize or Lottery Scams
These messages promise attractive rewards like cash prizes, gift cards, or exclusive discounts in exchange for your personal information or a small fee. The catch?
You must click on a link or provide sensitive data to claim your supposed winnings. There is no prize, and the scammers will steal any information or money you send.
For example, in Canada, people over 55 are some of the most common targets for these attacks, with an average loss of $978 to lottery scams per person in 2020.
Tech Support Scams
In this scenario, you receive a text claiming to be from a well-known tech company. The message informs you that your device has been compromised or infected with malware. It urges you to contact a provided “tech support” number or click on a link to resolve the issue.
However, the phone number connects you to a scammer who will attempt to gain remote access to your device or trick you into installing malicious software. The link may also download malware onto your phone.
The Federal Trade Commission wants you to know that legitimate tech companies would never contact you via SMS to inform you that your device or computer has a problem.
Bank Fraud Alerts
Smishers often impersonate banks, sending messages that warn about suspicious transactions or unauthorized access to your account.
The message includes a link to a phishing site that closely resembles your bank’s legitimate website. It prompts you to log in and verify your information. Once you enter your credentials, the attackers can steal your login details and access your real bank account.
Tax Scams
These scamming attempts, especially prevalent during tax season, involve scammers posing as representatives from tax agencies like the IRS.
They may send messages claiming that you owe back taxes and face legal consequences unless you make an immediate payment or, conversely, that you’re eligible for a tax refund but must provide personal information to claim it.
These scams aim to steal your money or sensitive data, as legitimate tax agencies would never request such information via text message.
This is one of the most prevalent types of smishing scams in the USA, with IRS smishing scams rising dramatically over the past several years. Texas is hit the hardest, with 68% of Texans being hit with tax fraud smishing scams, with New York, California, and Alaska not far behind.
Moreover, according to McAfee’s 2024 Tax Scam Study, an average of $8,199 per person was lost to tax-related smishing and phishing scams, with one in four Americans being targets.
Fake Package Delivery Notifications
These messages appear to be from a shipping company like UPS or FedEx, claiming they could not deliver a package to you. The message includes a link to track or reschedule the delivery, but clicking it downloads malware onto your device or takes you to a phishing site.
These types of smishing scams are also very common. For instance, in the UK, fake package smishing scams account for as much as 67.4% of all smishing attempts, making it another danger to look out for.
Customer Support Smishing Scams
A customer support smishing scam is where fraudsters send text messages that appear to come from legitimate customer support services. These messages often claim an issue with an account, payment, or order and provide a link or phone number to “resolve” the problem.
When victims click the link or call the number, they’re directed to fake websites or scammers posing as support agents. These scammers then attempt to steal sensitive information like login credentials, credit card details, or personal information.
Fake Boss or Colleague Scam
A fake boss or colleague smishing scam involves scammers impersonating a boss or coworker through text messages, often using a sense of urgency to pressure the recipient.
These messages typically claim there is an emergency or urgent task, such as purchasing gift cards, transferring funds, or providing sensitive company information.
Believing the request is from a trusted source, the victim may comply, unknowingly falling prey to the scam and potentially compromising company resources or personal information.
To avoid confusion, let’s differentiate smishing, phishing, and vishing scams, so you know exactly what you’re looking for.
Smishing vs. Phishing vs. Vishing
While smishing, phishing, and vishing all fall under the umbrella of social engineering attacks, they differ in the methods used to target victims. Here’s a look at each so you know what to be prepared for.
Smishing
Smishing specifically targets mobile phone users through SMS text messages. Attackers send deceptive texts that appear to come from trusted sources, tricking you into revealing sensitive information or clicking on malicious links.
Phishing
In contrast, phishing primarily relies on email to deceive victims. Phishers send fraudulent emails that often impersonate legitimate organizations, luring you into disclosing personal data or downloading malware.
Vishing
Vishing, on the other hand, exploits voice communication channels, typically through phone calls. Scammers pose as representatives from trusted entities, attempting to manipulate you into sharing sensitive information over the phone.
Although these attacks employ different mediums, they all aim to steal your sensitive data through social engineering tactics. Recognizing the distinctions between smishing, phishing, and vishing can help you better identify and protect yourself from these increasingly sophisticated threats.
Now that you know exactly what to look out for, let’s find out how to protect yourself from smishing scams.
How to Protect Yourself from Smishing Attacks
Defending against smishing requires awareness, caution, and proactive measures. Although these tips are very simple, they can help prevent hundreds or even thousands of dollars from being lost to cybercriminals.
Here are some key steps you can take to safeguard your personal information and devices from these deceptive attacks:
Be Wary of Unsolicited Messages
Always approach unexpected text messages with a healthy dose of skepticism, especially those that create a sense of urgency or request sensitive information. Legitimate organizations rarely ask for personal data via text message, so question the authenticity of such requests. Be wary of anybody you don’t personally know, especially if the message is unsolicited.
Don’t Click on Links or Download Attachments
Avoid interacting with links or downloading attachments from unknown senders, as they may lead to phishing websites or install malware on your device. If you’re unsure about a link’s legitimacy, manually type the organization’s official URL into your browser instead of clicking the provided link.
Verify the Sender
If you receive a suspicious message claiming to be from a company or service provider, contact them directly using official channels to confirm the message’s authenticity. Look up the organization’s contact information independently rather than using any numbers or email addresses provided in the suspicious text.
Keep Your Device Updated
Regularly update your mobile device’s operating system and apps to ensure you have the latest security patches and features. These updates often include fixes for known vulnerabilities that attackers could exploit to compromise your device or data.
Use Anti-Malware Software
Install and maintain reputable anti-malware software on your mobile device. These security tools can detect and block malicious content, including smishing links and malware-laden attachments. Keep your anti-malware software up to date to ensure maximum protection against evolving threats.
Practice Good Cybersecurity Hygiene
In addition to these mobile-specific precautions, it’s important to practice good overall cybersecurity hygiene, particularly for high-net-worth individuals. This includes using strong, unique passwords for each account, enabling two-factor authentication whenever possible, and being cautious about the personal information you share online.
Remember, smishing attacks rely on manipulating human emotions and exploiting trust. By staying informed, vigilant, and proactive in your cybersecurity efforts, you can significantly reduce your risk of falling victim to these increasingly sophisticated scams.
What to Do if You Fall Victim to a Smishing Attack
Despite your best efforts to protect yourself from smishing scams, you may still be a victim of these deceptive attacks. If you suspect you’ve fallen for a smishing scam, it’s important to act quickly to minimize the potential damage to your personal information and finances.
You must change your passwords, contact your bank or necessary financial institutions, report the incident, and continuously monitor all of your relevant accounts for suspicious activity.
Here’s what to do in the event of a smishing scam attack:
Change Your Passwords
One of the first steps you should take is to change your passwords for any compromised accounts. This includes your email, social media, online banking, and any other accounts that could be linked to the information you provided to the scammer. Use strong, unique passwords for each account, and consider using a password manager to help you generate and store them securely.


Contact Your Bank
If you believe your financial information has been compromised, contact your bank or credit card issuer immediately. Alert them to the situation and ask them to freeze your accounts to prevent unauthorized transactions. They may also suggest closing your current accounts and opening new ones to protect your finances further.
Report the Incident
Reporting the smishing attack to the appropriate authorities can help prevent others from falling victim to similar scams. In the United States, you can file a complaint with the Federal Trade Commission (FTC) online or by calling 1-877-FTC-HELP. You may also want to report the incident to your local police department, especially if you’ve suffered financial losses as a result of the scam.
Monitor Your Accounts
In the aftermath of a smishing attack, it’s crucial to monitor your financial statements and credit reports for any signs of suspicious activity.
Look for unauthorized transactions, new accounts opened in your name, or any other red flags that could indicate identity theft. Consider signing up for a credit monitoring service, which can alert you to potential fraudulent activity and help you respond quickly.
Hackers can access your investment portfolio in various ways, so it’s important to stay vigilant and take proactive steps to secure your accounts. This may include enabling two-factor authentication, regularly updating your passwords, and being cautious about the personal information you share online.
To wrap things up, let’s discuss how businesses can protect themselves against smishing attacks.
How Can Businesses Protect Against Smishing?
As a business owner or manager, you play a key role in safeguarding your company and employees from the growing threat of smishing attacks. Implementing a comprehensive cybersecurity strategy that addresses this specific risk can help prevent costly data breaches, financial losses, and reputational damage.
Educating your employees, implementing strong security measures, and using mobile device management are all great methods for protecting yourself and your business from smishing.
Here’s how you can protect your business from smishing scams.
Educate Employees
Your employees are your first line of defense against smishing scams. Regularly train your staff to recognize the telltale signs of a smishing attempt, such as urgent requests for personal information, suspicious links, or messages from unknown senders.
Encourage them to promptly report any suspected smishing messages to your IT or security team.
Consider conducting simulated smishing exercises to test your employees’ awareness and reinforce best practices. These mock attacks can help identify areas where additional training may be needed and keep your team vigilant against evolving threats.
Implement Multi-Factor Authentication
Multi-factor authentication (MFA) adds an extra layer of security beyond traditional passwords. By requiring employees to provide additional verification, such as a fingerprint, facial recognition, or a one-time code sent to their mobile device, you can significantly reduce the risk of unauthorized access to sensitive data, even if a password is compromised through a smishing attack.
Implement MFA for all critical systems and applications, particularly those that contain confidential information or financial data. Regularly review and update your MFA policies to ensure they align with current best practices and industry standards. If running a company, investing in a comprehensive cybersecurity solution is highly recommended.
Establish Clear Communication Protocols
Clearly communicate to your employees the official channels through which sensitive information will be requested or shared. For example, emphasize that your company will never ask for login credentials, financial data, or personal information via text message or email.
Encourage your staff to verify any unusual requests through a trusted contact within the organization, such as their direct supervisor or the IT department. Establish a clear protocol for reporting suspicious messages or potential security incidents, and ensure that all employees are familiar with these procedures.
Use Mobile Device Management
Mobile device management (MDM) solutions allow you to control and secure company-issued smartphones, tablets, and other mobile devices. With MDM, you can enforce strong password policies, encrypt sensitive data, and remotely wipe devices if they are lost or stolen.
MDM also enables you to control which apps can be installed on company devices, reducing the risk of employees inadvertently downloading malware through a smishing attack. Regularly update your MDM policies and software to ensure that your devices are protected against the latest threats.
By prioritizing employee education, implementing strong authentication measures, establishing clear communication protocols, and taking advantage of mobile device management solutions, you can significantly reduce your business’s risk of falling victim to a costly smishing scam.
The Bottom Line on Smishing Scams
Smishing, a form of phishing through SMS, is an increasingly prevalent cybersecurity threat, targeting individuals by posing as trusted entities to steal sensitive information or deploy malware.
These attacks range from account verification scams to fake package delivery notifications, each exploiting the trust and urgency that mobile messages can evoke. Awareness of common smishing tactics is essential for safeguarding personal and financial data.
By recognizing the signs of smishing and following preventive measures, such as verifying message senders, avoiding suspicious links, and using security software, individuals and businesses alike can significantly reduce their risk. Remember, cybersecurity is as much about staying informed as it is about staying vigilant against evolving threats.
Remember that Batten Safe is here for all of your cybersecurity needs.
Frequently Asked Questions
What Should I Do if I Clicked on a Smishing Link?
If you clicked on a smishing link, disconnect your device from the internet immediately to prevent data transmission, then run a malware scan. Change any compromised passwords, notify relevant institutions like your bank, and monitor accounts for unusual activity.
How Can I Identify a Suspicious Text Message?
Suspicious text messages often create urgency, request personal information, or include unfamiliar links. Check for grammatical errors, verify the sender by contacting the company directly through official channels, and avoid clicking on any links within the message.
Are There Specific Times When Smishing Attacks Increase?
Smishing attacks often surge during certain seasons or events, such as tax season or holiday shopping times, when people are more likely to receive messages from banks, delivery services, or tax agencies. During these periods, extra caution is advisable.
References
- Stay Alert For Fraudulent Text Messages – Information Security Office – Computing Services – Carnegie Mellon University (cmu.edu)
- What Is Smishing (SMS Phishing)? | IBM
- What are Smishing Statistics in 2024 – Keepnet (keepnetlabs.com)
- Enea Study: Almost Two-Thirds of Enterprises Suffer Significant Losses to Mobile Fraud | Enea
- https://www.robokiller.com/spam-text-insights
- https://techreport.com/statistics/cybersecurity/smishing-statistics/
- Cybersecurity Stats: Facts And Figures You Should Know – Forbes Advisor
- Smishing: What Is It, How It Works & Tips on How to Prevent It (bofa.com)
- How To Spot, Avoid, and Report Tech Support Scams | Consumer Advice (ftc.gov)
- What are Smishing Scams? Tips for Prevention | Vision Bank OK
- 10 Facts + Stats on Smishing (SMS Phishing) in 2024 (safetydetectives.com)
- McAfee’s 2024 Tax Scam Study Reveals a National Average of $8,199 Per Person** Lost to Tax-Related Phishing and Smishing Scams| McAfee Press Release
- Delivery scams become most common form of smishing | ITPro
- ReportFraud.ftc.gov