How to Protect Your Campaigns Against SMS Phishing

You can safeguard your marketing campaigns by detecting SMS phishing attempts. Find out how to safeguard your SMS strategy from smishing, as well as some startling figures and risks.

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Only with SMS marketing can a marketer’s toolbox be full. Companies may rapidly communicate with clients using short, direct, and very efficient text messages. On the other hand, con artists have taken advantage of the widespread use of SMS for fraudulent reasons, drawn in by its convenience and quickness.

“Smishing” or SMS phishing describes this emerging danger. Because harmful connections make it hard to distinguish from phishing, it is becoming an increasingly serious concern for companies and consumers.

The statistics on smishing are equally alarming: between 2016 and 2019, over 166,000 phishing victims lost $26 billion, while the FBI’s IC3 received over 2,800 complaints totaling over $3 million in damages.

Those in marketing who use short message service (SMS) to contact customers should be familiar with the term “smishing,” get training on how to recognize text phishing schemes, and choose campaigns with robust security features.

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How Cybercriminals Use Texts to Trick Users

SMS phishing is a type of cybercrime that targets victims via text messages. A person receives a text message with fake news or a surprising offer from a bank or well-known retail store. The main idea of fraud is to lure the victim into revealing valuable confidential information by masquerading as a trusted organization.

Opening scam text messages is not enough to be scammed; calling a phone number and talking to scammers while revealing private info is enough. Clicking the smishing link or responding is dangerous as it may lead to installing malware on the device or personal information leakage.

Explore the 5-step process of how SMS phishing works:

Unlike other forms of phishing, smishing is faster as it uses SMS, not email or phone calls. SMS phishing is based on the trusted and straightforward nature of SMS communication and text messages. This pretending sense of urgency makes users more likely to act without thought and be deceived by fraudsters.

Smishing is a social engineering technique used to trick victims into giving up sensitive information. Criminals trick people by playing on emotions — excitement, fear, or urgency — an excellent way to manipulate.

These two are the most prevalent phishing via text scams that affect users the most:

1. Fake Prize and Lottery Winnings

What it is	Fraudulent messages claim the recipient has won a prize, lottery, or sweepstakes. These messages urge users to click a link or reply to claim their winnings.
How smishing works	Once users click the SMS link, they’re directed to a phishing page or prompted to download malware, leading to data theft or financial scams.
Real world example of smishing	Enticing phrases like “Congratulations! You’ve won!” or “Click here to claim your prize!”The common version involves “winning” an iPhone or gift card.
Impact	Victims may suffer identity theft or financial losses. Fake prize scams are a particularly harmful SMS fraud because they make users feel defrauded and disillusioned.

2. Fake Order Confirmations

What it is	Phishing texts mimicking well-known brands or online retailers, claiming there’s an issue with a recent order or delivery.
How smishing works	Recipients receive an SMS with fake details about an “order” they don’t remember placing.
Real world smishing example	Urgency phrases like “Your order is delayed! Click here to view the status.”Text message phishing often mimics companies like Amazon, FedEx, or Apple, making the message appear legitimate.
Impact	Such smishing means damaging customer trust in the actual brands being impersonated. Victims who think their accounts were compromised may unknowingly share login details, risking financial or data theft.

Smishing vs. Phishing vs. Vishing: The Detailed Comparison

Every scam is based on behavioral and technological manipulation, but smashing poses the greatest threat to performance marketing. Its speed and seamless integration with mobile platforms create a real challenge for marketers.

Unfortunately, scammers are quick and can fool users in the blink of an eye, turning SMS campaigns into a high-stakes game. 

Uncover the distinctions between three types of scams and defend your pay-per-call or email campaigns:

Vishing	Vishing (voice phishing) is based on regular phone calls rather than digital messages. It’s more persuasive as it involves real-time interaction with the victim.
Phishing	Email phishing is the most common form; it “infects” email addresses with fake messages from banks, online retailers, or government agencies. They contain malicious links that, when clicking, lead to fraudulent web pages or malware downloads.
Smishing	SMS-based phishing exploits the trust people place in their text messages. The reason is that SMS lacks the cues that an email might be fraudulent, such as mismatched URLs or generic sender addresses.The main threat with smishing is the immediate action it urges: clicking a link or sharing personal details without verification.

How Customer Trust Weakens Due to SMS Smishing

Deterioration of Trust in the Brand

When perpetrated against a brand’s customers, smishing and phishing form a false association that makes them doubt the brand’s security.

Decrease in Customer Devotion

Brand loyalty can take a nosedive if customers feel misled by the company they thought was reaching out to them.

Financial Impact and Increased Customer Support Costs

Smishing scams also drive up customer support costs. Fake SMS add pressure and create a stressful environment for clients, so they ask for help more frequently. Therefore, you will have to increase operational costs and expenses on additional security measures.

Negative Brand Perception and Social Media Backlash

Smishing social engineering incidents tied to a brand can quickly spread negative perceptions. Disappointed customers can fuel public criticism by sharing a negative experience, which attracts a lot of attention and, of course, has irreversible consequences.

How Scammers Operate in Smishing and Phishing

There are seven most common types of smishing attacks:

Financial Institution Impersonation

Smishing criminals send fake messages most often from banks and other financial institutions. In such text message scams, which may look authentic, the recipient is threatened and compromised for urgent action.

The main thing that attackers are looking for is sensitive information such as:

• PINs
• Passwords
• Account numbers

Customer Support Fraud

Here, text scammers pose as customer support agents. They may ask for personal data under the guise of account verification or issue resolution.

Smishing is an attempt to gain sensitive information for the purpose of identity theft or account takeover.

Government Agency Fraud

Tax agencies or law enforcement agencies are often used as fronts for such schemes. The messages appear urgent or even intimidating. These SMS messages claim that the recipient owes back taxes or has unresolved legal issues with property, urging them to make immediate payments.

Malicious App Download Links

Such SMS messages contain links, which often lead to harmful apps or malware-laden websites. Victims may install a malicious file, app, or software.

“Wrong Number” Phone Text Scams

Scammer text messages are intentionally sent to random phone numbers, pretending they dialed the wrong person by accident. These SMS may seem friendly or casual since they contain personal details to be more convincing.

Delivery/Shipping SMS Scams

Here, fraudsters send messages pretending to be from delivery services.

Such suspicious text messages inform recipients of “delivery issues” and prompt them to click a link to resolve the problem (the link is malicious and leads to a phishing site or request to install malware).

Advanced Email & SMS Software to Improve Your Campaigns

Improved message delivery and compliance are ways in which Phonexa’s E-Delivery may boost the efficacy of your SMS campaigns. It will take your SMS and email marketing to the next level:

• Improved delivery rate
• Data encryption
• Enhanced monitoring and data analysis

 

Phonexa offers a comprehensive affiliate marketing solution that will help you increase the effectiveness of your marketing efforts.

 

Take a look at our eight-in-one solution suite:

 

Make Sure Your SMS Marketing Isn’t a Phishing Scheme

There are five most critical steps to take in securing your current SMS campaigns:

Security software	The first task is updating your security software on platforms and changing communication tools.
Two-factor authentication (2FA)	Even if cybercriminals attempt to access the data illegally, they cannot do so without a second layer of authentication.
Reliable cooperation	Secure your platforms against smishing by teaming up with dependable SMS providers like Twilio, Sinch, or MessageBird that put security first.
Monitoring campaigns	In order to identify smishing efforts, regularly assess the efficacy of your existing SMS campaigns.
Informed employees and customers	Train your employees and provide consumers with instructions on securing their private information over the phone, in email, and on social media.

To help you identify potential threats, be on the lookout for these unmistakable signs:

1. Alarming or frightening language grabs people’s attention and demands quick action. Unfortunately, due to pressure, users tend to act impulsively.
2. Links with abbreviated URLs first seem innocent but actually lead to dangerous sites.
3. Dubious sender IDs should make you doubt yourself because officials will not ask you for personal information, especially on a routine basis.
4. Requests for sensitive data like passwords, social security numbers, or credit card numbers should raise your suspicions.

 

Mitigating SMS Phishing in SMS Marketing Initiatives

In the landscape of modern technologies and digital interactions, it is important to act ahead, because every step can cost your reputation. Don’t let phishing attacks ruin your marketing initiatives — be both on guard and one step ahead. 

A smart approach to security is not just protection but your guarantee of success. As they say, it is better to be safe than sorry. With Phonexa solutions, which are also aimed at security and efficiency, you will achieve a higher level of automation, segmentation and real-time tracking. All this will improve your management of targeted messages or recognition of suspicious actions.

Build your plan now, or book a demo to see Phonexa’s email and SMS marketing software in action.

Frequently Asked Questions

What is smishing?

SMS phishing (smishing) is when criminals mislead you into divulging sensitive information using text messages. These messages will frequently pose as communications from trusted organizations, requesting personal information or links to be clicked.

How does SMS phishing spread?

Scammers use SMS phishing when sending fraudulent text messages pretending to be from a reputable company. Clicking on such links ends up on a malicious website, downloading malware, or having your personal information stolen.

What are the consequences of SMS phishing attacks?

Serious consequences, such as identity fraud, financial loss, and data breaches, can arise from smishing attacks. Criminals online endanger users by breaking into their accounts, stealing personal data, and then using it for fraudulent purposes. Companies and customers could face serious legal, reputational, and operational repercussions during a data breach.