What is Smishing (SMS Phishing)?

In 2025, cyber threats continue to grow in sophistication, with SMS phishing—better known as smishing—emerging as a rapidly escalating danger. Unlike traditional phishing, where attackers use emails to deceive victims, smishing exploits the widespread use of mobile phones by sending fraudulent text messages designed to steal sensitive information.

This post will dive deep into the risks of smishing, the financial and reputational damage it can cause, and the effective strategies your organization can adopt to defend against these attacks.

What is a Smishing Attack?

Smishing is a form of phishing where scammers use SMS or text messages to trick victims into revealing sensitive information such as usernames, passwords, and credit card details.

In other words, the definition of smishing refers to fraudulent messages that often impersonate legitimate organizations, using urgent language to manipulate victims into responding. The information obtained through smishing can then be used to commit fraud or identity theft, resulting in significant financial losses for both individuals and businesses.

For a deeper exploration of smishing—how these deceptive text scams work, why they’re so persuasive, and how to protect yourself—watch the Keepnet podcast series. You’ll find real-world examples, expert insights, and actionable tips to help you spot and shut down text-based phishing attempts.

How Does Smishing Work?

In this text message scam, attackers impersonate trusted organizations to deceive individuals into sharing sensitive information. Generally SMS phishing attacks involves sending fraudulent text messages that often include urgent language—such as warnings about account issues, unpaid bills, or package deliveries.

These usually contain malicious links that direct victims to fake websites designed to steal personal data or install malware. A smishing attack may also prompt recipients to reply with sensitive information like passwords or credit card numbers. The personal and direct nature of text messages makes smishing scams particularly effective, as victims are more likely to trust and act on these scammer messages without suspicion.

What Are The Types of Smishing Attacks?

Smishing attacks come in various forms, each designed to trick users into sharing sensitive information or downloading malware. Common SMS phishing examples include:

1. Banking Scams – Fraudulent texts claiming to be from your bank, alerting you of suspicious activity or asking to verify account details.
2. Delivery Scams – Messages posing as delivery services, stating there’s an issue with a package and prompting you to click a link.
3. Prize Scams – Texts informing you that you've won a contest or prize, asking you to click a link or provide personal information.
4. Tax or Government Scams – Fake messages pretending to be from tax authorities or government agencies, warning of legal action or offering refunds.

Each type of Smishing examples above preys on urgency and fear, making it easier for attackers to manipulate victims into revealing personal or financial details.

What Are The Examples of Smishing Scams?

Below are some real-world SMS phishing examples and how these scam text messages may appear:

1. Bank Account Warning. Scammers impersonate your bank, sending a fake alert about your account being locked. They urge you to click a link and enter your login details to "restore access," but this actually sends your credentials to the attacker.

Take a look at the example below for more details.

2. Fake Delivery Notice. Pretending to be from a delivery service, the message claims an issue with your package delivery. It asks you to click a link to reschedule, but instead directs you to a fake website to steal personal or payment information.

Check out the example smishing below for further information.

3. Suspicious Payment Alert: Scammers impersonate PayPal, warning of a fake unauthorized payment. They use the urgency of the situation to trick you into clicking the link, which can steal your login information or install malware.

Have a look at the example smishing below for more details.

4. Tax Refund Offer: Posing as tax authorities, scammers offer a fake refund to lure you into providing sensitive personal and financial information, which can lead to identity theft or fraud.

Watch the video below where Keepnet shares a real story of falling victim to a smishing attack. A fraudulent bank text led to financial loss, with the victim nearly falling for further scams. Learn key tips on how to spot and avoid smishing.

These smishing scams use fear and urgency to manipulate you into revealing sensitive information. Always be cautious and verify messages before responding.

The Impact of Smishing Attacks on Businesses

Smishing attacks have real, tangible impacts on businesses worldwide, leading to significant financial losses, reputational damage, decreased productivity, and erosion of customer trust.

Here are some concrete examples:

• Uber Smishing Attack: In 2018, Uber drivers were targeted by a smishing scam where they were sent a text message claiming to be from Uber, asking them to verify their account details. This scam resulted in many drivers losing their earnings, with some reports indicating losses of up to $3,000 per driver.
• Australian Bank Smishing Attack: In 2019, customers of several Australian banks were targeted by a smishing scam that resulted in losses of over AUD 1.5 million. The scam involved text messages that appeared to be from the banks, warning customers of suspicious activity on their accounts and urging them to log in via a link provided in the message.
• COVID-19 Relief Fund Smishing Attack: During the COVID-19 pandemic, a smishing scam targeted small businesses in the United States, promising access to relief funds. The scam resulted in losses estimated to be in the millions of dollars, with businesses providing sensitive financial information to the scammers.
• FTC Data: According to the Federal Trade Commission (FTC), businesses in the United States reported losses of $1.8 billion to imposter scams, including smishing, in 2020 alone. This figure underscores the significant financial impact of these attacks.
• Toll Road Smishing Scams in 2025: In 2025, Krebs on Security reported a wave of smishing attacks targeting toll road users across the U.S. These scams use messages about unpaid tolls to trick victims into sharing payment data. Powered by innovative Chinese phishing kits, the phishing websites dynamically adapt to mobile devices, making the attacks harder to detect. Victims face the risk of having their payment details misused for unauthorized purchases or fraudulent activities.

These examples highlight the severe financial impact of smishing attacks on businesses, with losses varying widely depending on the scale of the attack and the size of the targeted business. For small and medium-sized enterprises, these losses can be particularly devastating, potentially leading to bankruptcy.

How to Identify Smishing Attacks?

Smishing attacks are becoming increasingly sophisticated, making it vital to recognize the red flags that signal a potential threat. Knowing the signs can help you avoid falling victim to these deceptive scams.

• Unsolicited Messages – Be cautious of unexpected texts from unknown numbers or companies you don't recognize.
• Urgent or Threatening Language – Smishing texts often create a sense of urgency, claiming your account is compromised or you’ll face penalties.
• Suspicious Links – Avoid clicking links in text messages, especially if the URL looks strange or doesn’t match the legitimate website.
• Requests for Personal Information – Legitimate companies will never ask for sensitive details like passwords or credit card numbers via text.

By staying alert to these warning signs, you can protect yourself from smishing attacks.

How Scammers Used SMS To Attack

Smishing attacks are not just hypothetical scenarios; they are real and have caused significant damage to individuals and businesses alike.

Here are a few notable instances:

• The PayPal Smishing Scam: In 2020, a widespread smishing attack targeted PayPal users. The victims received a text message claiming their account had been suspended due to unusual activity, and they were directed to a fraudulent website to "confirm their identity." This scam resulted in countless users unknowingly handing over their login credentials to the scammers.
• The COVID-19 Smishing Scam: During the COVID-19 pandemic, numerous smishing scams surfaced. One notable case involved text messages claiming to be from government health departments, offering free testing. The messages contained malicious links that, when clicked, would install malware on the victim's device. The financial impact of these scams was substantial, with victims losing millions of dollars collectively.
• The Bank of America Smishing Scam: In 2019, Bank of America customers were targeted by a smishing scam where they received a text message claiming their account had been frozen. The message included a link to a fake website where victims were tricked into entering their banking details. The scam resulted in significant financial losses, with some victims losing thousands of dollars.
• The FedEx Package Smishing Scam: Another prevalent smishing scam involved text messages claiming to be from FedEx, stating that the recipient had a package waiting and needed to update their delivery preferences. The link in the message led to a fake Amazon satisfaction survey, which asked for credit card information to pay for shipping. This scam resulted in substantial financial losses for victims who fell for the scam.

These real-world examples underscore the severity of smishing attacks and the significant financial impact they can have on victims. It's important to remain cautious and take proactive measures to protect against such cyber security threats.

How to Prevent Smishing Attacks

Preventing smishing attacks requires a multi-layered approach involving technology, organizational measures, and individual actions. First, technological solutions like mobile security software, spam filters, and multi-factor authentication (MFA) can block or detect malicious messages before they reach users. Second, organizational solutions should include strong security policies, regular monitoring, and most importantly, security awareness training to educate employees on recognizing and avoiding smishing scams. This training is essential, as well-informed employees are the first line of defense against smishing. Finally, on an individual level, people must stay vigilant—avoid clicking on suspicious links, verify messages from unknown sources, and never share sensitive information via text.

By combining these technological defenses, organizational safeguards, and personal caution, organizations can effectively minimize the risk of smishing attacks.

Protect Your Business From Smishing with Keepnet

Smishing is a growing threat to businesses, with 76% of companies targeted in a single year, leading to a 328% rise in incidents. The financial impact is significant, costing an average of $800 per incident globally. To combat this, Keepnet offers comprehensive solutions with its Smishing Simulator and Security Awareness Training, helping businesses safeguard against these evolving attacks.

The Keepnet Smishing Simulator allows you to deploy realistic SMS phishing scenarios or create custom ones that mimic real-world attacks. By simulating smishing attempts, you can assess your employees' awareness and identify vulnerability levels. During the simulations, Keepnet tracks employee responses, providing instant feedback and personalized nudges to help them improve. This targeted approach ensures employees receive the right security awareness training based on their actions, addressing any gaps identified during the exercise.

With Keepnet Extended Human Risk Management Platform, you can further evaluate your employees' current cybersecurity knowledge through comprehensive behavior assessments.

The platform delivers behavior-based training tailored to your team's needs, helping to strengthen their ability to detect and report phishing attempts. Keepnet also empowers employees to report phishing incidents, fostering a proactive approach to security.

Using outcome-driven metrics, charts, and widgets, you can generate data-driven reports to provide executives with insights into your organization's security posture.

By leveraging Keepnet Human Risk Management, businesses can effectively mitigate the risks posed by smishing and enhance their overall cybersecurity defenses.

Watch the video below to get more details about how Keepnet Smishing Simulator can protect your business from smishing attacks.

Watch the video below to learn more about how Keepnet Security Awareness Training can enhance your team's readiness against phishing threats.

Further Reading on Smishing

Explore the following resources to enhance your understanding on Smishing and bolster your cybersecurity measures.

• 10 Real-Life Smishing Examples to Strengthen Cybersecurity Awareness - Explore actual smishing cases to see how attackers craft convincing SMS phishing messages and how individuals and organizations can defend against them.
• Smishing Statistics: The Latest Trends and Numbers in SMS Phishing - Get up-to-date statistics and insights on the rising threat of smishing, helping you understand its scale, targets, and evolving tactics.
• Smishing Scams in 2025: How to Safeguard Your Business Against SMS Phishing - Learn proactive strategies to protect your organization from the latest SMS-based phishing attacks in 2025 and beyond.
• How to Run an Smishing Simulation - Discover how to simulate smishing attacks within your organization to raise awareness, test resilience, and improve mobile cybersecurity practices.

Editor's Note: This article was updated on April 3, 2025.