Top 7 Examples of Smishing Attacks & How to Stay Safe?

Is your company ready to tackle the growing threat of smishing attacks? These scams can lead to devastating financial and data losses.

For example, in 2020, Bank of Ireland customers fell victim to a smishing scam that resulted in 800,000 euros ($970,000 USD/£700,000) being stolen from 300 accounts. The victims received a text claiming their accounts were compromised, urging them to click a link to update their personal information. Those who followed the link to a fake bank website and entered their PIN and account details had their money swiftly stolen. This incident underscores the urgent need for businesses to stay vigilant and take proactive measures to safeguard sensitive information from smishing threats.

This blog post will delve into 7 key examples of smishing attacks that cause significant financial losses and damage reputations and share tactics to help protect your business from these scams.

What Are The Top 7 Examples of Smishing Attacks

Smishing attacks are a type of cyber attack where attackers use SMS messages to trick victims into revealing personal information or installing malicious software. These attacks often involve fake smishing text messages that appear to come from trusted sources. Key examples of smishing in cyber security include fake banking alerts, fraudulent package delivery notifications, and phishing links posing as security updates. Recognizing these specific smishing tactics can prevent unauthorized access to sensitive company data and avoid data leaks. In the following sections, we will delve into the details of the most common smishing examples.

The Fake Bank Alert

One common example of smishing attacks is the fake bank alert. In this attack, the victim receives an SMS message claiming to be from their bank, warning of suspicious activity or asking to verify account information. The smishing text message includes a link or phone number leading to a fake website or automated system designed to steal login credentials or personal information. This can result in unauthorized access to the victim's bank account and financial loss. For companies, such attacks can lead to compromised employee accounts, resulting in data breaches and significant financial and reputational damage.

Check the example below.

The Delivery Notification

The delivery notification smishing attack is a frequent tactic where victims receive an SMS message claiming to be from a delivery service. The message informs the recipient of a pending delivery and includes a link to track the package. When the victim clicks the link, they are directed to a fake website to steal personal information or install malware on their device.

These attacks exploit the high volume of online shopping and delivery services. Victims may unknowingly provide sensitive information, such as login credentials or payment details. It can result in compromised employee devices, leading to unauthorized access to corporate networks, data breaches, financial losses, and damage to the company’s reputation.

Review the example below.

The Password Reset

The password reset smishing attack is a deceptive tactic where victims receive a smishing text message claiming to be from a trusted service or platform. The message informs the recipient that their account password needs to be reset urgently due to suspicious activity or security concerns. It includes a link to a fake website that mimics the legitimate service's login page. When the victim enters their current password and other credentials, the attackers capture this information.

Smishing in cyber security often preys on users' fears about account security. Victims unknowingly share sensitive information, such as login credentials, which allows attackers to gain unauthorized access to their accounts. This can result in compromised personal data, identity theft, and potential security breaches for any connected organizational systems.

Look at the example underneath.

The Tax Season Scam

During tax season, a common smishing scam involves sending victims an SMS message that appears to come from a tax authority or a trusted financial institution. The message might warn about issues with the recipient's tax return, mention a pending refund, or request verification of personal information to avoid penalties. It typically contains a link to a fake website designed to look like an official tax authority site. Once the victim clicks the link and enters their personal and financial details, the attackers capture this information.

These scams take advantage of the urgency and stress associated with tax filing. By tricking victims into sharing sensitive data like Social Security numbers and bank account information, attackers can commit identity theft and financial fraud. This often results in severe financial losses and long-lasting damage to the victim's credit and personal security.

Examine the example given below.

Fake Gift Card Contest SMS Message

A fake gift card contest SMS message is a smishing example where victims receive a text claiming they've won a gift card or can enter a contest to win one. The message urges the recipient to click a link to claim their prize. This link leads to a fake website designed to steal personal information or install malware.

These scams play on the excitement of winning and often imitate well-known brands. Victims may unknowingly provide sensitive information such as their name, address, and payment details. This can lead to unauthorized access to their accounts, identity theft, and financial loss. Additionally, malware can compromise the security of the victim's device and any connected networks.

Refer to the example below.

Fake Payroll Update Message

A fake payroll update message is a type of smishing attack where victims receive an SMS claiming to be from their company's HR or payroll department. The message informs the recipient of a supposed payroll issue or update that needs immediate attention. It includes a link to a fake website designed to look exactly like the company's payroll portal. When the victim clicks the link and enters their login credentials, attackers steal this information.

These smishing scams exploit employees' concerns about their salary and financial matters. By obtaining login details, attackers can gain unauthorized access to payroll systems, leading to identity theft, financial fraud, and potential breaches of sensitive company data.

Malicious Link Messages

Malicious link messages involve sending victims an SMS containing a link that appears to be from a trusted source. This smishing text message often creates a sense of urgency or offers an attractive reward to get the recipient to click the link. Once clicked, the link directs the victim to a fraudulent website or initiates a download of malicious software.

These attacks can steal personal information, such as login credentials and financial details. They can also install malware on the victim's device, compromising security. Victims may face identity theft, financial loss, and unauthorized access to personal and corporate accounts. For companies, being cautious with unexpected SMS links is important to prevent serious security breaches and protect sensitive data.

Watch the video below to learn more about the most common smishing scams.

What Are Some Clues That Text Message Is Smishing?

Identifying a smishing text message can save you from potential scams. Here are some key clues to watch out for:

1. Urgent or threatening language: Messages that create a sense of urgency or fear, such as warnings about account suspensions or urgent security updates.
2. Unexpected sender: Texts from unknown numbers or contacts that don't usually send SMS messages.
3. Suspicious links: Messages containing links that direct you to unfamiliar or misspelled websites.
4. Requests for personal information: Any message asking for sensitive information like passwords, Social Security numbers, or financial details.
5. Too good to be true offers: Promises of free gifts, prizes, or rewards that seem unrealistic or overly generous.
6. Poor grammar and spelling: Texts with noticeable spelling and grammar mistakes can be a sign of a smishing scam.
7. Unusual requests: Messages asking you to perform unexpected actions, like verifying account details or confirming personal information via a link.

How to Protect Yourself from Smishing Attacks?

Protecting your company from smishing attacks is important because these scams can cause financial loss, data breaches, and damage your reputation. Start by implementing strong security measures and keeping your systems updated. Encourage employees to verify unexpected messages directly with the sender rather than clicking on suspicious links.

In the following sections, we will explore 4 key actions to help protect your company from smishing attacks: recognizing red flags, updating security settings, educating your team, and reporting attempts to authorities.

Recognize the Red Flags of Smishing Messages

Recognizing the red flags of smishing messages involves looking for these signs:

1. Unfamiliar or strange sender names: Messages from unknown or unusual contacts.
2. General greetings instead of using your name: Greetings like "Dear Customer" instead of your actual name.
3. Offers that sound too good to be true: Promises of free gifts, prizes, or rewards that seem unrealistic.
4. Messages that ask for immediate action without explanation: Urgent requests to click a link or provide information right away.
5. Unexpected attachments or files: Attachments that you weren't expecting to receive.
6. Links that look almost right but are slightly off: URLs that are similar to legitimate sites but have small differences.
7. Requests to verify your account without prior notice: Messages asking you to confirm your account details without any previous warning.

Update Your Phone's Security Settings Regularly

Keeping your phone's security settings updated is one of the most effective smishing protection. Start by ensuring your operating system and apps are always up to date to benefit from the latest security patches and improvements. Enabling automatic updates can help you stay protected without having to remember to check manually.

Additionally, use security features like two-factor authentication to add an extra layer of smishing protection. Regularly reviewing app permissions ensures that apps only have access to what they need, minimizing potential vulnerabilities. By keeping your phone's security settings up to date, you can significantly reduce the risk of falling victim to smishing attacks.

Educate Yourself with Smishing Awareness Training

Recognizing and avoiding smishing attacks through smishing awareness training is significant, especially in a business environment. These training programs teach employees how to identify common smishing tactics, such as fake links and urgent requests for personal information. By staying informed about the latest scam techniques, your team can better protect the organization from potential threats. Regular training updates ensure everyone remains aware of evolving threats.

Additionally, smishing awareness training helps employees respond appropriately if they encounter a suspicious message. Gaining this knowledge significantly strengthens your company’s defenses against smishing scams and helps safeguard sensitive corporate information.

Report Smishing Attempts to Authorities

To stop smishing scams, it's important to report smishing attempts to authorities. By notifying relevant agencies, such as the Federal Trade Commission (FTC) or your local cybercrime unit, you help them track and address these threats. Reporting also aids in the investigation and potential shutdown of scam operations.

Additionally, informing your IT department or security team allows them to take protective measures for the organization. Prompt reporting helps prevent further attacks and protects others from falling victim.

What To Do If You Fall Victim to a Smishing Attack?

If you fall victim to a smishing attack, it's important to act quickly and follow these steps:

1. Report Immediately: Notify your IT department or security team right away.
2. Change Passwords: Change passwords for any accounts that might be compromised.
3. Monitor Accounts: Keep a close eye on your bank and credit card accounts for any unusual activity.
4. Inform Authorities: Report the incident to relevant authorities, such as the Federal Trade Commission (FTC) or local cybercrime unit.
5. Seek Support: Follow any additional instructions from your company's security team to protect your data and prevent further damage.

Elevate Your Security with Keepnet's Smishing Awareness Training

Keepnet offers the necessary tools to protect your organization from smishing attacks through comprehensive awareness training and an advanced smishing simulator. Keepnet's Awareness Training educates employees on recognizing the red flags of smishing text messages, such as unfamiliar sender names, general greetings, and suspicious links. This training equips your team with the knowledge to identify and avoid potential scams, achieving a 90% reduction in high-risk security behaviors and increasing training success from 50% to 94%.

In addition to training, Keepnet's Smishing Simulator allows you to test your employees' awareness in a controlled environment. By simulating real-world smishing attacks, you can assess how well your team can recognize and respond to these threats, boosting phishing reporting by up to 92%. This proactive approach helps to identify vulnerabilities within your organization and provides valuable insights into areas that may require additional focus.

By leveraging Keepnet's Awareness Training and Smishing Simulator, your organization can stay ahead of cybercriminals and ensure robust smishing protection. Investing in these tools not only enhances your security posture but also fosters a culture of awareness and readiness among your employees, leading to a training completion rate of up to 99%.

Watch the videos below to learn how Keepnet's Smishing Simulator and Security Awareness Training can assist your organization in preventing smishing attacks.