What is Smishing (SMS Phishing)? Examples & Tactics

Smishing falls under the larger term of SMS phishing because scammers can use a short message service to outsmart their victims in order to gain access to personal information, maybe a password, money, or perhaps one’s bank account. They create the messages as if they had originated from reputable institutions, such as banks, government departments, or other reputable corporations. According to the Federal Trade Commission (FTC), bank impersonation is the most common text message scam, accounting for 10% of all smishing messages.

The core purpose behind sending smishing messages is to trick the recipient into clicking malicious links, revealing private information through a reply, or downloading malware or other malicious content. Although the message appears legitimate, it is created with an ulterior motive of monetary benefit at the cost of unsuspecting victims. The true reason why cybercriminals increasingly make use of smishing for their attack is that mobile phones have almost become an essential adjunct to everyday life, and users are more likely to believe a text message than an email.

In this article, we will look at smishing in detail: how it works, how to recognize the warning signs, and what is the difference between smishing and traditional phishing. We will further consider the impact smishing has on businesses, as attacks may even culminate in compromised employee credentials or large-scale breaches of data. Further, we will let you in on how cybercriminals go about carrying out a smishing attack, mostly through tactics of impersonation and urgency to deceive the victim.

What is Smishing (SMS Phishing)?

Smishing is phishing specifically toward mobile phones and SMS/text messaging. In such an attack, malicious messages are sent to mobile phones, similar to messages sent by legitimate sites like a bank, a store, or a governmental agency. The attacker in such a case will aim to make a victim click on a malicious link or fill out a form full of sensitive information via text message.

Such scams could lead to identity theft, unauthorized access to personal or corporate accounts, and financial fraud. With the growing need for mobile communication, smishing has also surfaced as one of the most highly utilized channels by cybercriminals who target such innocent users.

Common Signs of Smishing

Smishing messages seem to originate from an authentic source; they often come from organizations that you trust so much. However, there are signs that might indicate that it is smishing. Here are some common signs:

• Soliciting messages requiring you to do something urgently, such as locking a bank account or failing to pay for something.
• You get a suspicious link that requires you to log into your account or update some of your details.
• Requests for your password credit card number or Social Security number
• Poor spelling and punctuation. This could indicate that the sender is a scammer.
• A phone number that does not look legitimate or professional.

Difference Between Smishing and Phishing

Smishing differs from phishing attacks in the medium of carrying out the attack. While typical phishing attacks usually occur via email, smishing occurs through SMS messages. Cybercriminals use one or both tactics to impersonate legitimate organizations and take advantage of the user’s trust in day-to-day communication.

Even though the goal would be to acquire information data from each of the attacks, approaches leading the way towards them and their strategies can be quite different. It is, however, very important to understand each of these approaches so that the attacks can be identified and guarded against effectively.

• Phishing:  Phishing mostly happens in the form of emails, where attackers send spoofed messages purporting to emanate from different trustworthy sources like banks, online retailers, or even government agencies. Often, they usually contain an embedded call to action, such as clicking on a link to update your account, download an attachment, or fill in your personal details. Phishing emails may direct you to scam sites that steal your login credentials or download malware on your computer device. Over the years, people have become more aware of phishing emails, thus making them almost easy to notice with improved email filters and cybersecurity awareness programs.
• Smishing: Smishing (SMS phishing) occurs through text messages on mobile phones. These messages will show up on personal phones and therefore will take on an air of greater urgency and be sent with a level of sincerity that phishing emails do not. Because they are mainly used for quick, direct communication, users may not be suspicious and probably will believe the message or act on it right away. Smishing messages could prompt you to click on the link, reply with personal information, or call a number.

Impact of Smishing on Businesses

Successful smishing attacks will bring extreme loss to an organization, such as data breaches and disruptions of operations. These sorts of attacks pose a problem not only to the individual employee but also to all networks that could be subjected to financial and reputational loss.

Here are some risks smishing poses to businesses:

• Loss of Sensitive Data: Smishing attacks can result in stolen sensitive employee credentials or critical corporate data. Attackers often employ deceitful messages to fleece employees of login information, account details, or other sensitive information. After access has been gained through those credentials, a malicious attacker may penetrate the business system, steal proprietary information, or use it to launch a far more elaborate cyberattack. For companies dealing with confidential customer data, or intellectual property, breaches of this kind can be devastating, bringing compliance issues or legal ramifications.
• Financial Fraud: Smishing attacks lead directly to financial losses. For instance, cyber thieves can disguise themselves as high-level executives or financial departments, using very convincing text messages that may indicate requests for some form of a fund transfer or requests for payment authorization. Such a trick may end up in the loss of the organization with enormous amounts due to employees who are not conversant with the common characteristics of smishing. In some cases, the company will also experience problems with an insurance claim or not recover money when it is transferred to a fraudulent account.
• Reputational Damage: A successful attack leaves the company’s reputation severely damaged. When customers or partners feel that the business is exposed to such attacks, they might lose trust. For instance, if smishing fraud exploits an employee and leads to leakage of customer information, then that can lead to public protest, adverse publicity, and even business loss. For a highly regulated industry like finance or health care, a breach of sensitive information may also lead to punitive measures. This will further dent the business status and image.
• Operational Disruptions: Business operations will be severely interrupted by smishing attacks. Such access can result in system downtime with attackers damaging crucial systems or deploying malware that affects productivity and operational efficiency. In some instances, firms have been forced to shut down parts of their operations to contain the breach and minimize any resultant damages. Recovery from such attacks, whether restoring systems, conducting breach investigations, or strengthening security protocols, is expensive and time-consuming, draining valuable resources from the firm.

How Smishing Works?

Smishing attacks usually come in a well-planned and executed scheme to dupe the target individual into revealing sensitive information or accessing a phishing website. These scams are based on trust and urgency.

They pretend to create imaginary urgency that would motivate the targeted victim to react without allowing himself or herself to fully mull over the risks. Here’s how it usually happens:

1. The Bait: The attack first appears as a text message purporting to come from a trusted organization, say a bank, a government agency, a delivery company, or a retail giant. These messages generally are crafted to appear as official as possible, by using familiar logos, language, or formats to convince the recipient that the message is coming from the stated organization. At this point, the hook only aims at catching the attention of the victim and making him believe the message.
2. The Hook: Then the message appeals to the recipient to act swiftly by sensing either urgency or fear. It could state that there is an urgent need to correct a problem with the bank account, missed payment, or a problem with the delivery. The message may require the victim to click on a link, make a call to some phone number, or reply with sensitive information such as login credentials or account numbers. That is the key strategy in smishing because it forces the victim to react in accordance with urgency without taking time to verify if the message is authentic or not.
3. The Deception: Once the victim follows instructions, he or she will be promoted to a false website that could almost look like the real one. The site can request personal details such as usernames, passwords, or credit card information. Sometimes, the message may cause the download of malware into the victim’s device instead of acquiring his/her information directly. It silently waits for commands and grabs or steals other sensitive information credentials and even unlocks the possibility of having an attacker who is remotely accessing the device.
4. The Theft: At this stage or immediately after the data theft, this type of cyber attacker then extracts personal information, financial accounts, or sensitive business information from the victims. Usually, stolen data is then sold on the dark web and can be used later to further exploit the victim, such as by identity theft, unauthorized bank transfers, or further attacks on systems in corporations.

Common Smishing Tactics Used by Cybercriminals

Cybercrime attackers use various means to make the smishing message appear valid and force the recipient to take prompt action. Trust, urgency, and curiosity are methods used by attackers to trick a victim into revealing his or her personal information or participating in other malicious actions through harmful links.

Some of the frequently used smishing techniques by attackers include:

• Impersonation: The most common one is to create a fake image by using the names of famous brands such as banks, online shops, or offices of government. Messages written as though they are from reputable sources, with logos and words and phrases that are familiar, and contact information that appears legitimate, mislead the recipient into believing that the message must be trusted and to do as told, which he does under the assumption that he is doing it to a trustworthy organization.
• Urgency and fear: Cybercrooks often create a sense of urgency or fear in the victim. For instance, messages may predict a security alert, account suspension, or some suspicious activity that requires attention right away. Inducing panic will encourage victims to bypass caution and click on a link or hand over sensitive information without verifying whether it is genuine.
• Enticing offers: This is another common trick where it uses attractive offers like prizes or gift cards in exchange for money, exclusive sales, or free rewards in exchange for money or information. The message claims that a prize is attached or that an offer will run out soon but only in exchange for personal information or a click. Such a lure reinforces the desire for a prize or discount and makes people more vulnerable to the scam.
• Delivery notifications: This is another common method that scammers use, especially during holidays. For instance, this holiday season, according to the message, a package is coming or even a delivery is delayed and requests the recipient to follow up with the tracking details by clicking on a link. Since many people are expecting delivery at given times, this feels very convincing, thus increasing the chances of engagement.

How to Identify a Smishing Attack

It is quite difficult to recognize a smishing attack, but there are certain signs that would make you differentiate between an official text message and one that is not.

If you are alert and aware of what to look for, there is a good chance of self-protection against falling prey to these scams. Here are some good ways to identify potential smishing attacks:

1. Check the Sender’s Number: One of the most important things to do when receiving a message is to first try to identify the number that the message came from. Spamming and scammers usually send their messages from unknown or unwanted phone numbers that appear suspicious or even spammy. If the number does not trigger a memory and is not in your address book, and is either a short generic code, then be very cautious. Legitimate organizations usually correspond from authenticated and registered phone numbers.
2. Look for Unexpected Requests: Beware of a text message that asks you to give personal details like password, SS number, or credit card number. Legal organizations do not request such information via text messages. If the message requests your personal information and also says that your account needs to be authenticated without prior notice, then it is most probably a kind of smishing.
3. Scrutinize Links: If the message has links, roll over them without clicking to know the URL that it leads to. It will help you know if that is taking you to a suspicious or even an unknown site. Check the spelling. The spelling should be the same as the legitimate organization’s official website. Do not click links coming from unsolicited messages since it will lead you to fake sites whose primary aim is to steal your information.
4. Trust Your Instincts: Trust your instinct when evaluating a text message. Sometimes, you just know something is fishy or the message does not even make sense for the company it’s claiming to represent; it could be a scam. Pay attention to the tone as well as the language used in the message. Smishing attempts contain poorly written grammar or spelling mistakes, which are often a giveaway of a fraudulent message. Call the organization directly if you ever feel that something is not right. Contact them through the officially approved channels. They will let you know whether it’s really their message or not.

How to Stop Smishing: Smishing Best Practices

There are several smishing best practices to protect a person and business against smishing attacks effectively. If you wish to take steps proactively and get informed, there is a high chance of minimizing the risks associated with falling for these scams.

Some effective strategies one can practice to stop smishing include:

1. Don’t Click on Links in Unsolicited or Unexpected Text Messages: The best mechanism to avoid smishing would be never to click any links in text messages unsolicited or unexpected. If you receive a message asking you to click a link, wait a moment and ensure that it is from a trusted person or organization before you click on it. Clicking such links might connect you to harmful sites that steal your information or install malware on your device.
2. Verify the Sender: In case you get a suspicious text claiming it is from an organization or company, try to confirm the sender by contacting the organization, through official lines. Do not answer the text nor use any contact details provided in the message because they could also be fraudulent. It’s prudent to check the contact details by which you could verify if indeed the message was authentic through the company’s official website.
3. Don’t Respond to Suspicious Messages: Never reply to messages asking for personal or financial information. Legitimate organizations rarely ask for sensitive data via text message. A message that asks for such information is probably smishing. The best course of action is typically to just delete the message.
4. Enable Spam Filters: If your mobile device supports some spam filtering, activate that. Spam filtering may limit unwanted messages from flooding your inbox, and you may better filter out valid information. Configuring your spam filters also helps reduce the effectiveness of smishing attacks.
5. Report Smishing: If you receive a smishing attempt, report it to your carrier or the local authorities. Most carriers have mechanisms for reporting fraudulent texts that can help them act against scammers. Reporting also raises awareness and helps protect others from similar attacks.
6. Educate Employees: Teaching employees about the risks of smishing and how to identify it is a must for businesses. Employees should be trained frequently in order to make them more vigilant with regard to smishing techniques, warning signals, and proper security measures for confidential data. Educated employees are perhaps the best assets for the security culture in an organization.

Common Smishing Examples

Knowing the types of messages used by cybercriminals in smishing attacks will help you identify and avoid unwanted situations arising from such scams. Here are some of the most common examples of smishing messages you may encounter:

1. Bank Account Lock Notifications“Your account in the bank has been locked. Please verify your identity here: [malicious link].” This type of scam creates a feeling of urgency. You think you need to do it urgently to return to your account. The link normally leads you to a phishing site where your login details are going to be stolen.
2. Package Delivery Alerts“Your package delivery is delayed. Click here to reschedule: [malicious link].” These messages rely on the common experience of receiving package deliveries, especially during the holiday season. The victim is directed to click on a link to rectify the issue, but this merely pushes him or her directly into the scam website, which may demand his or her personal information.
3. Prize Notifications“You have won a 500-dollar gift card! Now claim your prize at: [malicious link]. Messages like this play on the gullibility of recipients’ eagerness for potential prizes. However, the link often goes to a page that wants to gather personal data to supposedly award the “prize,” endangering your information.
4. Suspicious Activity Alerts” Urgent: Suspicious activity detected on your account. Please reply with your username and password to secure your account.” Such messages create a false sense of security while asking you to share sensitive information directly. Legit organizations do not ask for sensitive data through text messages; therefore, this is very much a red flag.

Conclusion

Smishing poses risks not just to the individual but to businesses, hence it’s considered a severe and fast-evolving form of threat in the cyber world. Since cybercriminals are forever evolving their tactics of scams, it is always imperative for one to be updated on how these scams work and how one can spot potential dangers. Being able to know the commonest signs of smishing among other tactics employed by attackers and how best to prevent them will better equip you to protect personal information.

Remember that honest organizations never ask you to provide sensitive information via SMS and exercise lots of caution about unsolicited text messages. Be aware, and vigilant, and you will succeed in reducing your propensity to fall victim to such malicious attacks. Report the event to the concerned authorities if you suspect an attack, and take immediate action to harden your accounts.

FAQs

1. What is smishing in cyber security?

SMS phishing, or smishing, is a particular type of cybercrime where the attacker sends malicious messages to the victim via short texts, as a result of which the victims are fooled into giving out sensitive information like their bank account number, Social Security number, or log-in password. Most of these messages seem to be coming from a reliable source and are thus very convincing.

2. How to prevent smishing Attacks?

Prevent smishing attacks by not clicking on any strange link received via unwanted text messages as well as not responding to unsolicited demands for personal information. Verify if the sender is legitimate by contacting the organization using official contact details rather than relying on the information received in the suspected text.

3. How to Respond to Smishing?

If you receive a suspicious text message, don’t retaliate. Instead, report the message through the reporting features of your mobile carrier or contact local authorities. You should also delete the text message afterward because it is likely to become a threat in the future.

4. What is the Difference Between Phishing, Smishing, and Vishing?

Phishing, smishing, and vishing are all together tactics applied by cybercriminals to obtain sensitive information. In most cases, the phishing attack is realized via emails where the attackers are masquerading as coming from a reputable organization. The case of smishing is realized via SMS messages, while the case of vishing is merely a phone call claiming to originate from a source that is trusted to pull out the victim’s information. All these tactics are aimed at deceiving victims into revealing their personal data.

5. Can I Reply to Smishing?

It is never safe to respond to a smishing message. Responding might be considered as confirmation to the sender that your phone number is valid, thus leading to more spam or possible scam messages in the future. Report the message and delete it; this is the best response. You should always be on your guard regarding such threats.

6. What are some common smishing scams I should be aware of?

Common smishing scams generally take the form of fraudulent text messages aimed at tricking you into handing over personal information or downloading malicious software. Most likely it involves an alert from your bank, which possesses all your data, including your name, stating there is suspicious activity regarding your account. Another very common scam is package delivery notices stating the delay of the package or needing to confirm it with a link from a fake site into which sensitive information is inserted. Other smishing scams are fake contests from places or agencies, notices on government programs, or seemingly urgent account updates that strive to create urgency to deceive.