Smishing Scams Are on the Rise: How to Spot and Avoid Text Message Fraud

Cybercriminals use text messages in a scam called smishing, impersonating companies or agencies to steal personal information like passwords or credit card details.

Unfortunately, these schemes are on the rise. In 2023, smishing attacks increased by 20%, with 147 million fraudulent texts sent daily worldwide. Knowing the warning signs can help you avoid becoming a target.

What is smishing and how it works?

Check out our video above to get the details on smishing.

What is smishing? Smishing involves scam text messages pretending to be from trusted sources like banks or government agencies. These messages create urgency to trick victims into clicking links or sharing personal information, leading to stolen data or malware attacks.

What is smishing vs phishing?

Phishing uses fake emails, while smishing targets victims through text messages. Smishing can be riskier since text messages have a higher open rate (98%) compared to emails (about 20%).

What makes smishing attacks so effective?

Smishing uses social engineering to trick you into sharing personal information through deceptive texts. These scams work because:

• Texts feel more trustworthy than emails.

• Mobile devices have weaker security protections.

• Scammers mimic real companies with familiar language and fake links.
• Recognizing these tactics can help you stay safe.

Common smishing scams

Smishing scams come in many forms but often follow similar patterns.

Fake bank alerts

A text claims suspicious activity on your account and directs you to a fake site to steal your login.

Delivery scams

A fake message about a missed delivery asks you to click a link and share personal or payment details.

Account security warnings

A text claims your account is locked and directs you to a fake login page to steal your credentials.

Toll Invoice Text Scams

You receive a text claiming to be a toll invoice, asking you to pay by clicking a link and entering your payment details.

Government or IRS scams

Scammers claim you owe taxes or qualify for a refund, especially during tax season.

Prize or reward scams 

A message promises a prize, asking you to click a link and share personal or payment info. 

Phony job offer scams

A fake job offer asks for personal info or directs you to a fraudulent link.

To stay protected, it's important to know how smishing works in cybersecurity, including the tactics the scammers use and the warning signs to watch for.

Cybersecurity red flags in text messages

Even if a text doesn't fit one of the more common scams, it could still be a fraud attempt. Watch for these general warning signs.

• Unknown senders: Be cautious of messages from numbers you don't recognize.
• Urgent language: Scammers use phrases like "act now" or "immediate action required" to make you nervous.
• Suspicious links: Scammers often use shortened URLs like bit.ly or tinyurl to hide fraudulent websites.
• Requests for personal information: Legitimate companies won't ask for passwords, Social Security numbers, or PINs via text.
• Spelling or grammar mistakes: Many scams have typos, bad grammar, or awkward phrasing.

If something seems off, don't click the link or reply. Instead, contact the company directly through its official website or customer service number.

How to protect yourself from smishing

Take these steps to reduce your risk of falling for smishing and cybersecurity scams:

• Ignore suspicious messages: If a text seems questionable or you have any doubt, don't click any links or respond.
• Verify with the company: Contact the business through their website, not the number in the text.
• Enable two-factor authentication (2FA): 2FA adds another layer of security to your accounts.
• Block and report scam numbers: Most carriers let you block and report scam numbers.
• Keep your devices secure: Install the latest software updates and use mobile security features.
• Check government sites for updates: The FBI's Internet Crime Center site usually shares common images of smishing texts.

What to do if you fall for a smishing scam

If you accidentally click a link or share personal information, take immediate action:

• Change your passwords: Especially if your banking, email, or financial accounts were included in the scam attempt.
• Monitor your bank and credit card statements: Look for any signs of unauthorized transactions or credit card fraud and report them.
• Enable fraud alerts: Contact your bank or credit card provider to monitor for unusual activity.
• Report the scam: File a complaint with the Federal Trade Commission (FTC) and inform your mobile provider.

Stay alert and stay safe with ProtectMyID

Stay alert and safe—smishing scams aren’t going away, but knowing the warning signs and taking simple precautions can help protect you and your loved ones. If a text message seems suspicious, don’t click; verify it independently. Being proactive can safeguard your accounts and identity. AAA members can access free benefits from ProtectMyID for extra protection to help keep their personal information secure.

By staying informed and vigilant, you can significantly reduce your risk of falling victim to smishing scams. Remember, a cautious approach and proactive measures can go a long way in safeguarding your personal and financial information.