Smishing, a form of cyber-attack that uses SMS messages to deceive victims, is on the rise. By exploiting human trust, attackers trick individuals into sharing sensitive information or installing malware. With its increasing prevalence, understanding and defending against smishing is fundamental for protecting both businesses and individuals.
What is smishing?
Smishing, a combination of "SMS" and "phishing," is a cyber-attack that uses text messages to deceive individuals. Cybercriminals send fraudulent SMS messages designed to trick recipients into revealing personal or financial information, clicking malicious links, or downloading harmful software. These attacks exploit social engineering techniques, such as creating urgency or fear, to manipulate victims. Similar to email phishing, smishing messages often mimic trusted sources, making them particularly convincing and dangerous.
How does smishing work?
Most smishing attacks operate similarly to email phishing. They rely on a mix of technological tricks and psychological strategies to mislead victims. The general process typically involves the following steps:
Malware attacks
Attackers often include malicious links in smishing messages, tricking victims into clicking them. These links download harmful software onto the victim’s device, such as spyware, ransomware or trojans. Once installed, the malware can steal sensitive data, track activity, or even lock users out of their devices until a ransom is paid. By disguising these links as legitimate, cybercriminals increase the likelihood of victims falling for the scam.
Malicious website attacks
Smishing messages frequently direct recipients to fraudulent websites designed to steal personal or financial details. These sites often mimic trusted organisations, such as banks or service providers, to appear credible. Victims are prompted to enter sensitive information, such as login credentials or payment details, which attackers then harvest for malicious purposes. The combination of convincing design and urgent messaging makes these attacks particularly effective at deceiving unsuspecting users.
How does smishing spread?
Cybercriminals use several techniques to distribute smishing messages and maximise their reach. One common method is mass texting, where attackers send thousands of fraudulent messages simultaneously to random phone numbers. Spoofing is another tactic, allowing cybercriminals to disguise their messages as coming from legitimate organisations, such as banks or delivery services.
Additionally, they exploit compromised contact lists obtained through previous breaches, targeting individuals with personalised messages. By combining these methods with social engineering tactics, attackers create highly convincing messages that lure victims into revealing sensitive information or clicking malicious links.
Types of smishing attacks
Smishing attacks come in various forms, each tailored to exploit specific vulnerabilities or create a false sense of urgency. Below are some common types of smishing tactics that cybercriminals use to deceive victims.
Gift smishing
Gift smishing tempts victims with promises of prizes, gift cards or exclusive offers. Messages often claim the recipient has won a reward and must click a link or provide personal details to claim it. These scams exploit excitement or curiosity, leading victims to unknowingly share sensitive information or download harmful software.
Customer support smishing
In customer support smishing, attackers pose as representatives from trusted companies, such as banks or service providers. They claim to assist with issues like account security or service disruptions. Using this trust, they trick victims into revealing passwords, account numbers, or other sensitive data, often under the guise of solving a problem.
Invoice or order confirmation smishing
Fraudsters send fake order confirmations or invoices, often mimicking legitimate businesses. These messages prompt victims to review or cancel an order by clicking a malicious link. The link may lead to a phishing site designed to steal personal information or install malware, preying on the victim’s concern about unauthorised transactions.
Why is smishing a threat to businesses?
Smishing poses significant risks to businesses by exploiting employees as entry points for cyberattacks. These include:
Data breaches: Smishing attacks can lead to data breaches by tricking employees into sharing sensitive information or clicking on malicious links. Once attackers gain access, they can compromise customer data, internal communications, or intellectual property. This can result in significant regulatory fines, especially under laws like GDPR, and legal liabilities for the business.
Financial losses: Cybercriminals may use smishing to steal funds directly, such as tricking employees into transferring money to fraudulent accounts. Alternatively, attackers might install ransomware on company systems, demanding payment to regain access. These financial impacts can strain resources and disrupt operations.
Reputational damage: A smishing attack can severely harm a business's reputation. If customer data is compromised or operations are disrupted, clients may lose trust in the company's ability to safeguard their information. This erosion of trust can lead to customer attrition and reduced revenue over time.
Smishing vs phishing
Smishing and phishing are both forms of cyber-attacks that exploit human psychology to deceive victims, but they differ in their delivery methods.
Phishing attacks typically occur via email, with cybercriminals sending fraudulent messages designed to steal sensitive information or install malware. These emails often mimic trusted organisations and use techniques like fake login pages to capture credentials.
Smishing, on the other hand, operates through SMS or text messages. Attackers send deceptive texts containing malicious links or requests for personal or financial details. Unlike phishing emails, smishing messages often exploit the immediacy and brevity of text communication, making them appear urgent and legitimate.
Despite the difference in delivery channels, both rely heavily on social engineering tactics, such as creating urgency or fear, to manipulate victims into taking action.
How can businesses defend against smishing?
To effectively defend against smishing, businesses should adopt a comprehensive approach that includes both technological solutions and employee awareness. These include:
- Employee education: Train staff to recognise suspicious text messages and avoid sharing sensitive information or clicking on unverified links.
- Anti-phishing tools & SMS filtering: Implement tools that block malicious messages before they reach employees' phones.
- Clear communication policies: Set guidelines for verifying unusual requests through trusted channels, such as phone calls or secure websites.
- Penetration testing: Regularly simulate smishing attacks through social engineering penetration testing to identify vulnerabilities and prepare your team for potential threats. This proactive approach helps uncover weak spots before attackers can exploit them.
Smishing poses a significant threat to businesses, exploiting human psychology to trick individuals into sharing sensitive information or installing malware. As this type of attack continues to evolve, businesses must take proactive security measures with regular penetration testing.
