What is Smishing? Definition, Examples and Ways to Prevent it

Have you ever felt that sinking feeling in your stomach after realising you may have fallen for a scam through a simple text message? Or perhaps you’ve wondered if that urgent SMS from your “bank” is actually legitimate? In today’s digital age, where our smartphones are practically extensions of ourselves, a new threat lurks in our message inboxes: smishing.

Imagine waking up to a text message that your bank account has been compromised, with a link to “secure” it immediately. Your heart races as you click the link, entering your login details… only to discover later that you’ve handed your financial information to cybercriminals. This scenario, unfortunately, is becoming increasingly common. In fact, Smishing attacks were reported in 74% of companies in 2021, highlighting the urgent need for awareness and protection.

But don’t worry – knowledge is power, and that’s exactly what this comprehensive guide aims to provide. We’ll walk you through everything you need to know about smishing. By the end of this article, you’ll be equipped with the tools and knowledge to recognise and prevent these deceptive attacks, safeguarding your personal information and financial well-being.

What is Smishing?

Smishing, also known as SMS phishing, is a form of Cyberattack that uses Short Message Service (SMS) to deceive recipients into divulging sensitive information or taking actions that compromise their security. Just as phishing uses email to lure victims, Smishing uses the widespread use and perceived trustworthiness of text messages to carry out malicious activities.

Smishing is a type of phishing attack where attackers use fraudulent text messages to deceive individuals into revealing personal information, such as passwords, credit card numbers, or other personal data. This method of social engineering attacks exploits the trust and immediacy associated with text messaging to trick victims.

Characteristics of Smishing

The following are the key characteristics of Smishing:

• SMS-based: Uses text messages to target mobile devices.
• Impersonation: Poses as legitimate entities.
• Urgency: Creates a false sense of time pressure.
• Data requests: Asks for sensitive personal information.
• Malicious links: Contains shortened URLs or links to fake websites.
• Generic greetings: Uses non-personalised salutation.

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How Does Smishing Work?

A typical smishing attack follows these steps:

1. The attacker crafts a deceptive text message, often impersonating a trusted entity like a bank, government agency, or well-known company.
2. The message is sent to a large number of phone numbers, which may be obtained through data breaches or purchased from illegal sources.
3. The message usually contains a sense of urgency and a call to action, such as clicking a link or calling a number.
4. If the recipient falls for the scam, they may be directed to a fake website that harvests their sensitive data or be tricked into installing malware on their device.

What happens if you click on a Smishing text?

Clicking on a link in a smishing text can have serious consequences:

1. Data theft: You may be directed to a fake website that captures your login credentials or other sensitive information.
2. Malware installation: The link might trigger the download of malicious software onto your device. This malware could:
   • Steal your data
   • Monitor your activities
   • Take control of your device
   • Use your device for further attacks
3. Financial loss: Some smishing scams aim to trick you into making payments or providing financial details, leading to unauthorised transactions.
4. Identity theft: Stolen personal information can be used for identity fraud, potentially impacting your credit score and financial standing.
5. Account compromise: If you provide login details, attackers may gain access to your accounts, potentially leading to further data breaches or financial losses.
6. Subscription to premium services: Some smishing attacks may sign you up for expensive premium SMS services without your knowledge.
7. Device compromise: In some cases, the attacker may gain control over your device and access your contacts, messages, and other sensitive information.
8. Spread of the attack: Your compromised device or account may be used to spread the smishing to your contacts.

How Does Smishing Differ from Phishing?

Both smishing and phishing are forms of cyber security attacks. They share the same goal of deceiving users to obtain sensitive information, but there are some key differences:

1. Medium: Smishing uses deceptive text messages to trick users while phishing primarily uses email.
2. Message length: Smishing messages are typically shorter due to SMS character limits, forcing attackers to be more concise.
3. Perceived trustworthiness: Text messages are often perceived as more personal and trustworthy than emails, potentially making smishing more effective.
4. Urgency: The immediate nature of text messages can create a greater sense of urgency, prompting quicker responses from victims.
5. Limited security features: Unlike email clients with built-in spam filters, many SMS systems lack robust security measures.

What is smishing versus vishing?

Smishing and vishing are both forms of phishing, but they differ in their delivery methods. Smishing (SMS phishing) uses a text messages to deceive victims, often containing malicious links or prompting calls to fraudulent numbers. Vishing (voice phishing), on the other hand, relies on phone calls or voice messages to manipulate targets into revealing sensitive information or transferring funds.

Common Forms of Smishing Attacks

Smishing attacks can take various forms. Here are some common examples:

Fake Alerts

“Your bank account has been locked. Click here to verify your identity and restore access: [malicious link]”

“Unusual activity detected on your credit card. Reply YES to confirm the recent transaction of $500.”

Promotional Offers and Rewards

“Congratulations! You’ve won a $1000 gift card. Claim now: [malicious link]”

“Limited time offer: 75% off your favourite brands. Shop now: [malicious link]”

Social Engineering Techniques

Smishing attacks often exploit human psychology, using tactics such as:

• Urgency: “Act now to prevent your account from being suspended!”
• Fear: “Your device has been infected with a virus. Call this number immediately for removal.
• Curiosity: “Someone has a crush on you. Find out who: [malicious link].”

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Real-life Smishing Attack

To illustrate the real-world impact of Smishing, let’s look at a couple of notable incidents:

The COVID-19 Vaccine Text Scam

In early 2021, as COVID-19 vaccines were being rolled out, smishing attacks exploiting the situation emerged. Victims received text messages claiming to be from health authorities, offering early access to vaccines in exchange for personal information or payment. Many fell for this scam, resulting in identity theft and financial losses.

Verizon

Verizon reported a smishing attack aimed at its customers. The deceptive text messages seemed to originate from the recipient’s phone number, designed to trick users into clicking on a malicious link included in the message.

Tokyo Olympics

Threat intelligence firm CYFIRMA detected a smishing campaign aimed explicitly at Olympics enthusiasts. The attackers sent text messages offering fake event tickets with the goal of tricking recipients into providing their personal information and banking details. This scam not only sought to exploit the excitement surrounding the Olympics but also posed a significant risk of identity theft and financial loss for the victims.

Paypal Smishing Scam

In this widespread phishing attack, users received emails pretending to be from PayPal, warning them of a security breach in their accounts. The emails urged immediate action and provided a link for logging in. However, the link led to a fake website designed to steal their login details, giving hackers access to their PayPal accounts.

These cases highlight the potential consequences of smishing attacks, from financial losses to compromised personal information.

How to Recognise a Smishing Attempt?

Being able to identify a smishing attempt is essential for protection. Here are some key indicators to watch for:

• Unexpected messages from unknown numbers.
• Requests for personal or financial information via text.
• Pressure to act quickly or threats of negative consequences.
• Poor grammar or spelling errors.
• Links that don’t match the purported sender’s official website.
• Use of generic greetings instead of your name.
• Requests to download apps or click on links.

When analysing the content of a suspicious SMS, ask yourself:

1. Is this message unexpected?
2. Does it create a sense of urgency?
3. Is it asking for sensitive information?
4. Does the sender’s number match official records?
5. Are there any unusual spelling or grammatical errors?

If you answer “yes” to any of these questions, be extra cautious and verify the message’s authenticity through official channels.

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Ways to Prevent Smishing Attacks

Protecting yourself and your organisation from smishing attacks requires a multi-faceted approach. Here are some effective strategies:

 Personal Security Measures

1. Avoid Clicking on Links: Never click on links in unsolicited text messages, especially those from unknown senders.

2. Verify Sender Information: If you receive a message claiming to be from your bank or another trusted entity, contact them directly using their official website or phone number, not the one provided in the message.

3. Use Security Software: Install and regularly update anti-malware and security apps on your mobile devices.

4. Be Skeptical: Approach unexpected messages with caution, especially those creating a sense of urgency or offering deals that seem too good to be true.

5. Enable Two-Factor Authentication (2FA): Use 2FA whenever possible to add an extra layer of security to your accounts.

Organisational Strategies

1. Employee Training: Conduct regular cybersecurity awareness training for all employees, with a focus on recognising and responding to smishing attempts.

2. Security Policies: Implement and enforce strong security policies, including guidelines for handling sensitive information via mobile devices.

3. Incident Response Plans: Develop and regularly update a comprehensive incident response plan that includes procedures for dealing with smishing attacks.

4. Mobile Device Management (MDM): Use MDM solutions to enforce security policies on company-owned or BYOD (Bring Your Own Device) smartphones.

5. Regular Security Audits: Conduct periodic security assessments and audit to identify and address vulnerabilities in your organisation’s mobile communications.

Technological Solutions to Combat Smishing

As smishing attacks become more sophisticated, technological solutions play a crucial role in defence:

SMS Filtering and Monitoring

Many mobile carriers and third-party apps offer SMS filtering services that can detect and block potential smishing messages. These solutions use machine learning algorithms to analyse message content and sender information, flagging or blocking suspicious texts.

 Two-factor authentication (2FA)

While Two-factor Authentication can be exploited in some smishing attacks, it generally adds a significant layer of security. Use app-based 2FA methods rather than SMS-based ones when possible, as they are more secure.

Role of Telecom Providers

Telecom providers are increasingly taking steps to combat smishing, which are:

– Implementing advanced filtering techniques at the network level.
– Collaborating with cybersecurity firms to identify and block malicious sources.
– Educating customers about smishing risks and prevention methods.

Legal and Regulatory Aspects

There are several laws and regulations to address smishing and related cybercrime activities.

In Australia, several laws and regulatory bodies address smishing and related cybercrime activities:

• The Spam Act: This legislation regulates commercial electronic messages, including SMS, and prohibits the sending of unsolicited messages.
• The Privacy Act: This act governs the handling of personal information by businesses and government agencies, which is relevant when dealing with data breaches resulting from smishing attacks.
• The Australian Consumer Law (ACL): Part of the Competition and Consumer Act 2010, the ACL provides protections against misleading and deceptive conduct, which can be applied to smishing cases.
• The Criminal Code Act: This federal law includes provisions for computer-related crimes, which can be used to prosecute smishing perpetrators.

If you become a victim of a smishing attack in Australia, it’s important to report the incident to:

• The Australian Cyber Security Centre (ACSC): This is the primary government agency for cybersecurity. You can report cybercrimes through their ReportCyber service.
• The Australian Competition and Consumer Commission (ACCC): Report scams, including smishing, through their Scamwatch website.
• Your local police: For serious cases involving financial loss or identity theft.
• Your mobile carrier: They can help block the number used in the smishing attempt and may have additional security measures.
• Relevant financial institutions: If your financial information was compromised, contact your bank or credit card company immediately.
• The Office of the Australian Information Commissioner (OAIC): If you believe your personal information has been mishandled as a result of a smishing attack.

What should I do if I become a victim of smishing? 

If you fall victim to smishing, do not respond or click any links. Report the incident to your bank or the impersonated company, change any affected passwords, and monitor your financial accounts for unusual activity.

Also read: How to Recognise and Avoid Phishing Attacks?

Conclusion

As our reliance on mobile devices continues to grow, so does the threat of Smishing attacks. By understanding smishing, recognising its various forms, and implementing robust protection strategies, individuals and organisations can significantly reduce their vulnerability to these deceptive schemes.

Remember, when it comes to text messages, a healthy dose of scepticism can go a long way in safeguarding your personal information and digital security. Stay vigilant, keep yourself informed about the latest cybersecurity threats, and always err on the side of caution when dealing with unexpected or suspicious messages.

Take action today to protect yourself and your loved ones. Contact us today to update your device’s security settings, install a reputable mobile security app, and have a conversation with your family or team about smishing awareness. Your digital safety is in your hands – stay alert, stay informed, and stay safe!