Smishing: Understanding and Preventing SMS Phishing Attacks in Your Business

It’s 2025 and scams are more common and sophisticated than ever before. Most of us are familiar with phishing, the deceptive email scams designed to steal your information, but have you heard of smishing?

Much like phishing, smishing is when scammers attempt to trick you into giving up sensitive information. The difference is, is that it all happens through SMS or messaging apps. These messages appear to come from a legitimate source, your bank, a delivery service, or even a colleague, but create a false sense of urgency to get you to act fast without thinking twice.

What makes smishing particularly dangerous is how personal and immediate it feels. We tend to trust our text messages more than our inboxes, which gives attackers a dangerous advantage. And for businesses, this can mean compromised accounts, leaked data, or even financial loss.

In this post, we’ll unpack what smishing looks like, why it’s a growing threat to businesses, and what practical steps you can take to keep your team and information safe.

What is Smishing and Why It Matters

“Smishing” might sound like a bit of technical jargon, but it’s simply phishing adapted for the mobile age. It’s a form of cyberattack that uses SMS (Short Message Service) or messaging apps to deceive users into handing over sensitive information, like passwords, bank details, or other access credentials.

The term itself is a blend of “SMS” and “phishing,” and has been around since 2006. But has grown more rapidly in recent years as we rely on mobile devices more and more. With over 3.5 billion people using smartphones worldwide and spam texts being sent out by the millions every day, smishing has become one of the most widespread and dangerous digital threats individuals and businesses face today.

How Smishing Differs from Phishing and Vishing

While phishing, vishing, and smishing all fall under the umbrella of social engineering scams, each uses a different channel to reach their target:

Smishing: Delivered via text messages or messaging apps. Often contains a fake link that leads to a spoofed login page or malware download. The messages usually mimic banks, couriers, or internal staff and create pressure to act fast.
Phishing: Carried out through email. These messages usually contain links or attachments designed to steal credentials or install malware.
Vishing: Happens over phone calls or VoIP services. Attackers impersonate trusted individuals, such as bank staff or company executives, to gather information during the call.

Smishing is uniquely dangerous because text messages can be sent to any phone number in the world, with very few barriers.

Why Smishing Poses a Real Risk to Businesses

Smishing can be a serious business threat. Many businesses are mobile-first or atleast rely heavy on mobile devices. Many employees even use their personal devices for work (a trend known as BYOD or Bring Your Own Device). This creates an overlap between personal and corporate data, and with it, a wider attack surface.

Cybercriminals are also getting smarter. They comb through platforms like LinkedIn to identify new hires or company changes, then send tailored messages impersonating executives or colleagues. New employees, still getting to know internal protocols and people, are particularly vulnerable to these types of attacks.

Mobile devices are now critical for productivity, communication, and even security processes like multi-factor authentication (MFA). That’s why a single successful smishing attack, just one employee clicking the wrong link, can create serious consequences across an entire organisation.

How Smishing Attacks Work

Smishing attacks often follow a deliberate, step-by-step process designed to exploit both our trust and the vulnerabilities of mobile technology. By understanding how these attacks are orchestrated, you’re better equipped to spot the warning signs as well as stop threats before they do damage.

Target selection: Attackers identify potential victims, either randomly using broad lists of phone numbers or specifically targeting individuals based on data from previous breaches.
Message crafting: The attacker creates a deceptive text designed to trigger specific emotions like urgency, fear, or curiosity.
Message delivery: Using SMS gateways, spoofing tools, or infected devices, attackers send their messages to selected targets.
Victim interaction: Upon receiving the message, you’re prompted to take action, typically clicking a link, replying with personal information, or calling a specified number.
Data collection: If successful, attackers harvest your sensitive information or deploy malware on your device.
Exploitation: The stolen information is then used for identity theft, unauthorised transactions, or sold on black markets.

The Psychology Behind the Scam: Social Engineering

Trust: The message appears to come from a legitimate source, the bank, a delivery company, or a known contact. SMS feels more personal and immediate, making us more likely to trust it without second-guessing.
Context: Attackers often tailor messages to current events or your circumstances. For example, during peak shopping seasons, messages referencing delayed deliveries become especially believable.
Urgency and Emotion: The message usually includes a time-sensitive threat or problem: “Your account will be locked,” or “Your parcel couldn’t be delivered.” This sense of urgency encourages you to act fast, before you stop to think.

Use Of Fake Links And Spoofed Numbers

Number Spoofing: Using software tools, scammers can disguise their real number with one that looks familiar or trustworthy. Sometimes, spoofed messages even appear in the same message thread as previous legitimate texts, adding to the deception.
Malicious Links: On a smartphone, it’s not easy to preview a link. Attackers use URL shorteners or craft lookalike domains (e.g., auspost-check.com instead of auspost.com.au) to trick you into clicking. These links lead to fake websites designed to steal your data, or worse, install malware.

Let’s Take A Look At A Real-World Example

One of the most common smishing scams involves fake delivery texts. It usually looks something like this:

“We couldn’t deliver your package. Please reschedule and confirm your address: [fake link]”

The link directs you to a site that looks just like a legitimate delivery service. You’re asked to enter your personal or payment details. These scams are effective because many people are generally waiting for packages, especially during sales or holiday periods.

In fact, bank impersonation and delivery scams account for over 10% of all smishing messages, making them one of the most reported types of mobile fraud today.

Common Types of Smishing Attacks

Smishing attacks come in many forms, each tailored to exploit specific vulnerabilities. Here are some of the most common (and costly) types of smishing scams targeting individuals and businesses today.

1. Banking and Financial Scams

These smishing messages often appear to come from your bank or credit provider, warning of urgent issues like:

Suspicious activity on your account
Locked or restricted access
Failed or pending transactions

The goal? To prompt panic and immediate action.

What happens next:

Clicking the provided link takes you to a fake website designed to mimic your bank’s login page. Once there, you’re prompted to enter sensitive details like your login credentials, card numbers, or passwords.

The damage:

Cybercriminals can use this information to:

Drain business or personal accounts
Make unauthorised purchases
Register your cards on digital wallets like Apple Pay or Google Pay

2. Fake Tech Support Messages

These scams start with a text claiming there’s something wrong with your device or account. The sender usually impersonates a trusted company like Microsoft, Apple, or your telecom provider.

Their aim is to convince you to call a support number or click a link for help. Once you’re connected, they’ll often:

Request remote access to your device
Install malware or ransomware
Steal credentials, business data, or even financial access

3. Prize and Lottery Scams

Everyone loves a win, but that surprise text saying you’ve scored a prize or gift card is often too good to be true.

“Congratulations! You’ve won! Click here to claim your reward.”

What they want:

To “verify” your identity or process your “prize,” you’ll be asked to:

Enter personal details
Pay a small fee
Click a malicious link

These scams rely on excitement and curiosity to bypass your usual scepticism.

4. Government Impersonation

One of the most frequently reported types of smishing, government impersonation scams use authority and urgency to manipulate victims.

Common tactics include:

Claiming you’re eligible for a refund or financial benefit
Asking you to update your personal information
Threatening legal consequences unless immediate payment is made

Why do they work?

These messages often look official, complete with logos, government names, or real contact details, making them particularly convincing and dangerous.

5. Malicious App Download Links

Smishing messages sometimes promote a “must-have” app, whether for entertainment, convenience, or productivity. But instead of downloading something helpful, you may be installing malware.

How it works:

Clicking the download link (especially on Android, where app installation is less restricted) can result in:

Spyware that tracks your activity
Ransomware that locks down files
Apps that quietly steal contacts, passwords, or business data

Bottom line?
If a text message seems urgent, unexpected, or too good to be true, pause before you tap. Smishing scams are increasingly sophisticated, but awareness is your best defence.

Why Smishing Works

What makes smishing particularly dangerous is that it doesn’t rely on complex hacking techniques, but rather human behaviour. Unlike sophisticated hacking tools, smishing relies on psychology, timing, and trust to trick users into handing over valuable information. Here’s why it’s so effective:

1. People Trust Text Messages

Most of us trust our SMS inbox. It’s typically only reserved for friends, family, banks, and service providers. That trust creates a false sense of security.

Text messages feel more personal and immediate than emails, which is exactly why scammers prefer them. They know people are far more likely to:

Open a message right away
Take it at face value
Respond quickly without second-guessing

This misplaced confidence, coupled with the belief that smartphones are inherently safer than computers, makes smishing a uniquely potent threat.

2. We’re Distracted

Throughout daily activities, you likely use your smartphone while distracted or in a hurry. This divided attention creates perfect conditions for making snap decisions without properly evaluating message legitimacy.

On mobile devices, it’s also harder to spot danger:

You can’t hover over links to preview URLs
Shortened links look normal
The mobile interface hides subtle red flags that would be more obvious on a desktop

In short, convenience and distraction make smartphones the perfect smishing playground.

3. Mobile Security Training Lags Behind

While email phishing is widely covered in corporate training, mobile threats often fall through the cracks. And the stats are alarming:

67% of organisations say their employees lack basic cybersecurity awareness
Many companies offer security training just once a year or quarterly
Few programs specifically teach employees how to spot and report smishing attempts

This lack of mobile-specific awareness leaves a huge gap for attackers to exploit, especially in businesses that rely heavily on texting for communication.

4. Smishing Gets Seen (and Answered)

Numbers don’t lie, and when it comes to engagement, SMS blows email out of the water:

98% open rate for SMS vs. 20% for email
90% of SMS messages are opened within 3 minutes
45% of people respond to texts, compared to only 6% for email

Ultimately, it offers a high-return investment for cybercriminals. With such powerful visibility and engagement, even small smishing campaigns can yield significant rewards.

How to Prevent Smishing Attacks in Your Business

Smishing may be a growing threat, but it’s far from unstoppable. With awareness, technology, and a proactive culture, your business can build a powerful defence against deceptive SMS scams. Here’s how:

1. Educate Employees on the Red Flags

Your first line of defence is your people. Comprehensive training helps your staff identify suspicious messages. Teach your team to verify sender details for slight misspellings, examine links before clicking, and stay alert to urgent requests designed to create panic.

Make sure your employees understand that legitimate organisations never request passwords or payment details via text messages. Regular simulations using real-world text scam scenarios prepare your team to recognise and handle potential threats effectively.

2. Foster a Culture of Healthy Scepticism

Are your employees comfortable reporting suspicious messages? Creating an environment where staff can report concerns without fear of blame strengthens your security posture. Promote a “see something, say something” culture with positive reinforcement for reporting potential smishing attempts.

3. Use Mobile Security Tools and Smart Filters

Equip your devices with advanced mobile security software capable of:

Detecting and blocking malicious text messages
Scanning for social engineering red flags like urgency or unusual formatting
Alerting users when risky links are detected

Modern tools even use AI to adapt to new attack techniques, giving you an edge against evolving threats.

4. Implement Multi-Factor Authentication (MFA)

Relying on passwords alone is no longer enough. MFA adds an essential layer of protection by requiring more than just a password to access sensitive systems. Ideally, your MFA solution should:

Use something the user knows (like a password)
Combine it with something they have (a device) or something they are (like a fingerprint)
Be phishing-resistant and require deliberate user action

With MFA in place, even stolen credentials are much less useful to attackers.

5. Limit Sensitive Data on Mobile Devices

The less data stored on a device, the less there is to steal. Encourage staff to avoid storing financial details or sensitive business information on their phones. Advise them to:

Be mindful of what they share online, especially on public profiles
Lock devices when unattended
Use strong passwords and biometric authentication for access

6. Leverage Anti-Phishing and MDM Tools

Protect every mobile device in your fleet with dedicated tools:

Anti-phishing software that flags malicious SMS links before they cause harm
Mobile Device Management (MDM) to enforce consistent security policies, monitor usage, and remotely wipe compromised devices
Simulated smishing exercises to identify employees who may need more training

These tools give IT teams visibility and control across all endpoints, even on employee-owned devices.

7. Make Reporting Easy

Set up a simple, well-communicated process for reporting suspicious messages. Ensure employees know who to contact and what to do if they receive something that feels “off.” Sharing these reports helps your security team stay ahead of emerging threats and strengthens your overall defence.

Protecting Your Business Starts Here

Smishing attacks are a fast-growing threat that prey on human instincts and mobile vulnerabilities to steal sensitive information. Despite their effectiveness, awareness around smishing remains alarmingly low in many workplaces.

The truth is, defending against these attacks isn’t just the job of your IT department; it requires a whole-of-business approach. From employee education to robust security systems, staying protected means staying proactive.

At CRT Network Solutions, we take your security seriously. As a trusted Managed IT Services provider, we offer comprehensive protection designed to keep your systems and your people safe from evolving threats. Backed by years of experience and a friendly, responsive team, we’re here to support your business every step of the way.

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