SMS phishing is a type of phishing through SMS messaging. An attacker uses SMS to send compelling messages to a targeted recipient to lure them to click on a link, gather personal information, or automatically download malicious programs into the smartphone. There are seven types of SMS phishing: impersonation, financial service scams, order confirmation, and gift smishing. SMS phishing works like email phishing to get a user’s account information or financial data.
Many people already know the dangers of clicking links in email messages. However, only a few understand that phishing now also happens through SMS messages. The user’s account or financial information becomes compromised when clicking malicious links. It can lead to unauthorized transactions and loss of money. In some cases, the attacker can also take over the user’s smartphone. There are several signs that an SMS is a phishing attempt, such as urgent or unusual requests, messages from unknown senders, spoofed phone numbers, and unexpected attachments. This article will give more information about SMS phishing, its definition, signs, and effects.
What is SMS Phishing?
SMS Phishing or “smishing” is a security attack wherein mobile phone owners are tricked into downloading malware or filling up malicious links to collect their personal information. To further define SMS phishing, it is a type of social engineering attack that exploits human trust over the use of technical devices like smartphones.
When a hacker sends you an SMS message asking you to click on a link, this message contains fake information about a problem on your account in an attempt to access your data. When you click on the link in the message, you’ll be taken to a fake website where hackers will try to get your personal information through a phishing form. These forms look identical to legitimate websites (like PayPal or Amazon), but hackers control them. Once they have your information, they can track everything you do online.
SMS phishing has grown increasingly popular because people are more likely to trust a message delivered via text over one sent by email. Although many individuals do not equate phishing scams with personal text messages, the reality is that hackers are more likely to discover your phone number than your email address. A limited number of phone numbers is available in the United States – each number has ten digits.
A hacker can send messages to any combination of digits the same length as a phone number. They have nothing to lose and everything to gain by attempting all numbers. Gartner reports that users read 98% of text messages and respond to 45%. It makes texting an attractive attack vector for hackers, especially compared to email response rates. Likewise, reports show that only 6% of emails receive responses, making them much less effective than text messages.
What is the Other Term for SMS Phishing?
SMS phishing is also known as “smishing.” Smishing is the combined term for SMS and phishing. It is a type of phishing on mobile devices instead of email. It is carried out via SMS text messaging.
How does SMS Phishing Works?
SMS phishing works similarly to email phishing. Attackers send mass smishing messages with fake offers, alerts, or warnings to get people to click on malicious links. These links take people to counterfeit websites designed to steal their personal information.
Smishing uses social engineering to trick text message recipients into providing personal or financial information. Smishers exploit public online tools to obtain basic information about their target, which they then use to trick the person into believing the message comes from a credible source.
An example is when you may receive a text message from a well-known store informing you that you must go to check your billing information or that your delivery will arrive late to make it for a loved one on Christmas. The only problem is that the phony text message directs you to a fraudulent website link. Your personal information will be used to commit identity theft, fraud, and other felonies.
Smishing is also used to distribute malware and spyware through links or attachments that may steal information and perform other harmful activities. Urgency, danger, or a warning are often included in messages to encourage the recipient to act quickly.
A smishing scheme is deemed successful once the attacker has used your information to commit the fraud or theft they aimed for. It ranges from directly stealing from your bank account and committing fraud to opening accounts or credit cards or leaking corporate data.
What are the Signs of SMS Phishing?
There are six common signs of an SMS phishing scheme. Knowing these signs will help you avoid falling victim to scams.
- Unidentified Numbers – Receiving messages from unknown numbers or 11-digit numbers claiming to be legitimate organizations is the first sign of an SMS phishing attempt. Most businesses using text messaging uses a 6-digit shortcode or a 10-digit toll-free number. Before responding or taking action, search the number online. It should take you to a legitimate business page.
- Not Using Your Name – Credible businesses almost always use your name when they contact you about your account or purchases. If the sender doesn’t know your name, you likely didn’t give them your number. However, you might have your name linked to online social media accounts. Thus, some fraudsters may also use your name in this scheme.
- Claiming Prior Connection – Some SMS phishing styles will try to fool you by saying they have a prior relationship with you, like claiming you’ve shopped from their business in the past. Remember: if you don’t recognize the sender of a text, DON’T respond. Especially if they request money, information, or that you click on a link. These scams rely on your assumption that you have forgotten them and are responding out of politeness.
- Offers of Rewards – A frequent SMS phishing technique is to provide an incentive for people to reply to a text scam. These messages frequently claim that you’ve won a contest or been given a random gift. They will request personal information or bank details to receive the reward. SMS phishing signs may offer financial incentives, like competitions and prizes such as tax refunds.
- Risks and Threats – this sign of SMS phishing is opposite the rewards offer and takes a more aggressive style. It may contain messages saying you risk incurring fees, such as having a late subscription or not paying a bill. This SMS phishing style uses scare tactics to trick people into responding quickly without verifying the message. The goal is to obtain personal information or login details that can lead to identity theft and fraud.
- Administrative Request or Notification – Another sign to look out for is SMS phishing messages that ask for password updates to confirm numbers, emails, or accounts. The message will include a link leading you to a site similar to a legitimate website. However, the website is fake and is only used to steal your login information. The same goes for text messages that claim to be from your bank or other financial institution. They will often say there has been unusual activity on your account and ask you to click on a link to update your personal information.
What are the Effects of SMS Phishing?
SMS phishing has various adverse effects on businesses and individuals. Some common effects include damage to reputation, loss of money, data loss, identity theft, disruption of operational activities, and loss of intellectual property.
- Damage to Reputation – One of the most common effects of SMS phishing is damage to reputation. Once a business or individual’s personal information has been compromised, it can be challenging to regain the trust of customers and clients. In some cases, the damage to reputation may be irreparable.
- Loss of Money – Another effect of SMS phishing is the loss of money. It happens in a few different ways. For businesses, SMS phishing can lead to loss of revenue if customers lose trust in the company and stop doing business with them. Individuals can also lose money if they respond to a text scam and provide their bank account or credit card information.
- Loss of Data – In addition to loss of money, SMS phishing also leads to data loss. Many text scams are designed to steal login information and other sensitive data. Once this information is in the hands of a fraudster, it can be used to commit identity theft or different types of fraud.
- Identity Theft – One of the most severe effects of SMS phishing is identity theft. Smishing schemes steal personal information like names, addresses, Social Security numbers, and credit card numbers. Once this information is stolen, it can be used to open new accounts, make purchases or even commit fraud.
- Disruption of Operational Activities – SMS phishing can also disrupt operational activities. Fraudsters often target businesses and can lead to loss of money and data. SMS phishing can also disrupt business operations if employees are scammed to provide sensitive information about the company.
- Loss of Intellectual Property – SMS phishing also leads to loss of intellectual property and, eventually, loss of company value. When it happens, a business may experience irreparable repercussions due to data theft and company secrets being sold to competitors.
What are the Types of SMS Phishing?
A comprehensive list of SMS smishing is almost impossible to complete because of the endless reinvention of this scheme. However, there are seven established types of SMS phishing using similar methods of attack and deception.
- Impersonation SMS Phishing- These scams involve text messages that appear to be from a legitimate source, such as a company or service you use, asking you to click on a link or provide personal information. The goal is to steal your login credentials or other sensitive data.
- Financial Service SMS Phishing – Smishing attacks on financial institutions often send notifications and messages. Many people use banking, credit card, loan, and investment services – making them easy prey for these kinds of scams—attackers imitating a bank or other legitimate financial institution to commit fraud and steal your money. Financial services smishing scams often include an insistent demand to unlock your account, being asked to confirm fishy-looking account activity, and so on.
- Customer Support Smishing – Smishing fraudsters impersonate a reputable business’s support employee to assist you with a problem. In this scenario, high-use technology and e-commerce firms like Apple, Google, and Amazon are effective disguises for attackers. An attacker will typically claim that there is a problem with your account and provide you with instructions on how to correct it.
- Order Confirmation SMS phishing – Confirmation smishing is a type of fraud that occurs when someone receives a false confirmation of an existing purchase or billing invoice for a service. A link may be provided to entice you to action or create fear of unauthorized charges by playing on your curiosity. This scam may be evidenced by strings of order confirmation messages or the lack of a company name in the message.
- Gift SMS phishing – Gift smishing is when an attacker tries to get you to take action by suggesting that you could win free services or products. They might do this by promising a contest, shopping rewards, or any number of other offers. By making the idea of “free” seem exciting, they hope to override your logic and get you to act quickly. Signs of this smishing scheme include limited-time offers or being told you’re part of a select group who can get a gift card.
How to Prevent SMS Phishing?
There are ten easy ways to prevent falling victim to SMS phishing. Despite the aggressiveness of attackers, you can effectively protection yourself by being mindful of the messages you receive from unknown sources. Of course, not all messages must be ignored, but you should always act cautiously. Here are the ways to prevent SMS phishing:
- Check the phone number – Strange-looking phone numbers, such as four-digit ones, might be signs of email-to-text services. It is one of many methods a fraudster may use to disguise their actual phone number.
- Use multi-factor authentication (MFA) – MFA is an extra layer of security that uses two or more verification factors to protect your accounts. The most common types are something you know (like a password), something you have (like a physical key or token), and something you are (like your fingerprint).
- Do not click on links in texts – If you receive an unsolicited text with a link, even if it looks like it’s from a legitimate source, do not click on it. Instead, go to the company’s website or app and log in.
- Call your bank directly – If you receive a text claiming to be from your bank, do not reply or click on any links. Instead, call the customer service number and ask if there are any issues with your account.
- Slow down if a message is urgent – Limited time offers or urgent account updates are signs of SMS phishing. Be cautious and proceed with care.
- Never save credit card info on your phone – If you have a mobile wallet like Apple Pay or Google Pay, that’s fine. But don’t store your credit card number or other sensitive information on your phone.
- Never give out password or recovery codes – No legitimate company will ever ask for your password or recovery codes. These are for your eyes only.
- Do not download apps from SMS messages – If you receive a text telling you to download an app, go to the App Store or Google Play and find it there instead.
- Report – If you think you’ve been the victim of SMS phishing, report it to your carrier and the FTC.
- Do not respond – One of the easiest ways to stop SMS phishing is simply by not responding to the message. It includes replying “STOP” or any other variation.
How to Stop SMS Phishing?
Receiving phishing SMS messages is unwanted and alarming, especially those that are after personal and financial data. Here are five ways how to stop SMS phishing.
- Don’t Respond – The best way to stop SMS phishing is by not responding. Whether you reply with “STOP,” “UNSUBSCRIBE,” or anything else, you confirm that your number is active and can be used for future attacks.
- Mark as Spam – Many phones have the option to mark texts as spam. It moves the message to a separate folder and, in some cases, will block future messages from that number.
- Block the Number – If you’re getting texts from a number you don’t recognize, your phone probably has an option to block it. Once the number is blocked, you shouldn’t receive any more messages from them.
- Report It – Many carriers have a way to report spam texts. It helps them track which numbers are used for phishing attacks and hopefully will lead to the attackers being shut down.
- Use Anti-smishing tools – For an added layer of security, you may use apps that proactively block SMS phishing messages.
What are the Best Anti-SMS Phishing Tools?
There are many ways to protect yourself from SMS phishing, but some methods are more effective than others. One of the best ways to protect yourself is to use an anti-phishing tool.
Anti-phishing tools detect and block phishing emails and texts before they reach you. They work by analyzing messages for red flags that indicate a phish, like unique URLs or spoofed sender addresses. Here are the top choices for Anti-SMS Phishing tools:
SMS Shield (Best Overall)
SMS Shield works online and offline to find and block phishing texts before they reach you. It offers highly efficient and real-time protection against known and emerging threats, and it can also scan your existing texts for signs of phishing. Block unwanted SMS contacts automatically based on criteria, or customize rules according to your preferences using the AI engine. It also includes a frequent traveler mode that allows you to filter out cross-border SMS communications.
PhishFort (Best for Businesses)
PhishFort is an enterprise-grade anti-phishing solution that offers protection against phishing attacks through email, SMS, and social media. It uses a combination of machine learning and human analysis to identify and block phishing attempts, and it also allows users to report phishing attacks. PhishFort includes many other features designed for businesses, like integration with existing security systems and custom reporting.
Key Messages (Best for Android)
Key Messages is an Android app that uses AI to block phishing messages from unknown senders. It allows you to send multimedia content quickly, but this app also blocks SMS messages by category. Utilize the safety of Google Drive and back up your data with just a click.
Vero SMS (Best for iPhone)
VeroSMS is a useful SMS filter that allows you to block text messages based on keywords or region-based crowdsourcing data. VeroSMS does not have access to your texts, and it does not collect or transmit any of your data. You may manage your contact list by blacklisting unwanted callers while allowing verified contacts to avoid being blocked.
Is SMS Phishing a Threat?
Yes, SMS phishing is a threat that should not be underestimated. Attackers are constantly finding new ways to exploit the vulnerabilities of our mobile devices, and SMS phishing is one of the most popular methods being used today.
SMS phishing attacks are often challenging to detect and can have severe consequences if you fall for one. If you’re not careful, you could give away your personal information or financial details to a scammer.
That’s why it’s crucial to be aware of the dangers of SMS phishing and to take steps to protect yourself from these attacks. Use an anti-phishing tool, be cautious of links and attachments in texts, and don’t respond to any suspicious messages. Following these simple tips can help keep yourself safe from SMS phishing attacks.