Smishing Attacks are becoming more common, and harder to detect. But organizations can protect themselves, by using the right tools.
Social engineering attacks are harder to spot, thanks in part to threat actors using AI to craft compelling messaging. While the cyber threat landscape is evolving rapidly, due to new technology and delivery methods, smishing is making headlines as an effective form of social engineering.
Short for "SMS phishing," smishing utilizes text messages to convince people to reveal sensitive information or download malicious software to their mobile devices. As organizations increasingly rely on a connected workforce that has access to sensitive data on their mobile devices, the risk of smishing attacks has grown significantly. But is it possible to prevent such attacks?
What is Smishing?
Smishing (https://www.cmu.edu/iso/news/2024/smishing-news-article1.html) is a cyberattack that falls under social engineering attacks. It is a type of phishing (https://cybermagazine.com/articles/vishing-smishing-and-quishing-are-next-ways-to-go-phishing) that leverages short text messages to trick recipients into taking actions that compromise their security. In a smishing attack, attackers send SMS messages pretending to be legitimate organizations, such as banks, government agencies, e-retailers, or even social media companies, to gain the target's trust.
"three in four respondents reported that their organization had encountered smishing attacks."
They deceive users into revealing sensitive information such as account credentials and credit card details. They ask them to click a link to visit a malicious website, download a malicious attachment, or install applications containing malicious programs to infect their mobile devices with malware. In smishing messages, attackers write text to convince target users to act promptly by creating a sense of urgency or fear, such as asking them to click a link to visit their online banking portal to avoid account suspension or installing an application to check their remaining balance.
With more than 7.2 billion smartphone users worldwide in 2024 (https://prioridata.com/data/smartphone-stats) , threat actors are turning to smishing instead of using regular phishing emails, which have a low success rate in targeting users.
Examples of Smishing attacks
Smishing can take different forms depending on the attacker's objective. Here are the most prominent types of smishing:
- Bank or credit card provider frauds: A message coming from your credit card provider, such as Master Card or Visa, claiming there are suspicious transactions in your account. These attacks commonly spike during the holiday season.
- E-commerce website fraud: A message from an e-commerce provider, such as Amazon, claiming a problem with your order and asking you to update your account or shipping details.
- Shipping fraud: A message from a shipping provider, such as DHL or FedEx, telling you there will be a delivery delay and that you should update your shipping address to avoid further issues.
- CEO fraud: A message pretending to be from your company CEO asking for urgent help. Business-targeted smishing utilizes information collected from publicly available sources, such as social media platforms, to collect information about the target to enhance believability before sending the smishing message.
Why do you need to protect yourself?
Smishing attacks exploit human psychology and rely on urgency, curiosity, or fear to manipulate victims to execute something against normal security practices. The consequences can be severe for businesses, ranging from financial losses to reputational damage. Employees who fall victim to smishing can inadvertently expose sensitive organization data, making it critical to implement robust defenses.
Smishing poses significant risks to businesses, especially those whose workforce can access any work-related information via their mobile device.
According to a survey of IT professionals and working adults worldwide conducted by Statista, three in four respondents reported that their organization had encountered smishing attacks. Whether your company views mobile devices as a tool for work, or as a means of staying in touch while on the move, smishing can grant threat actors access to sensitive data, with devastating consequences. ,
What risks are associated with smishing attacks?
A Smishing attack can be devastating for an organization, it does not matter how big or small it is. The loss of sensitive data, stolen credentials and identity theft are some of the most common risks.
Whatever the form of the attack, vulnerable organizations are at risk of suffering significant losses, which can have a long-term impact on their operations, financial performance and reputation.
Some of the most common risks are:
Data breaches: Smishing attacks can lead to unauthorized access to sensitive business data, such as financial information, and intellectual property data. The cost of a data breach is increasing each year; it has reached 4.88M USD per incident globally in 2024.
Financial losses: Attackers use stolen credentials and credit card details from smishing attacks to authorize fraudulent financial transactions, transfer company funds, or exploit financial IT systems. Employees who fall victim to smishing attacks can cost their companies considerable financial losses.
Identity theft: Some attacks aim to steal sensitive personal information, such as social security numbers and passport/driving license details. They later use the stolen identifiers to commit different fraudulent activities, such as authorizing financial transfers or making purchases on behalf of the victim.
Reputation damage: While financial loss can be compensated, reputation damage cannot and could cause the business to shut down entirely because customers are likely to avoid doing business with companies that have experienced a data breach. For instance, a report by Vercara found that following a data breach, two-thirds of consumers would lose trust in the affected company.
How to prevent your organization against smishing attacks
Preventing smishing attacks requires a combination of technology, education, and being vigilant when communicating with SMS messages received on your phone. Here are three important strategies businesses can implement:
- Security Awareness Training: Implement Nimblr's Security Awareness Training to transform your employees into cybersecurity assets. Our specialized training modules address smishing threats through micro-learning sessions, realistic simulations, and behavior-based metrics.
- Deploy mobile solutions: Deploy mobile-specific security solutions designed to detect and neutralize smishing attempts. Consider implementing URL filtering systems that automatically scan message links for malicious content, AI-driven anomaly detection tools that identify suspicious messaging patterns, and mobile device management solutions that enforce security policies across corporate mobile devices.
- Create response channels: Establish robust incident response procedures designed explicitly for mobile-originated attacks. Create a dedicated communication channel for reporting suspicious messages, develop documented investigation protocols, and regularly test your organization's ability to respond to simulated smishing incidents.
As mobile devices become increasingly integral to business operations, smishing attacks represent a critical security challenge requiring immediate attention. Don't wait for a breach to take action.
At Nimblr, we understand that users are your most prominent attack surface. Our specialized security awareness training (https://nimblrsecurity.com/blog/how-to-boost-security-awareness-with-engaging-online-training) equips your team with the knowledge to recognize and resist smishing attacks - strengthening your defense where it matters most. Contact Nimblr today to transform your employees from vulnerabilities into vigilant defenders of your business security.
