SMS fraud: Why it is new headache for telecom companies globally and what makes it more dangerous than email scams

The increasing use of smartphones has fueled a surge in

mobile phone scams

, also known as "

smishing

," posing a significant challenge for telecommunications companies gathering at the Mobile World Congress (MWC) in Barcelona this week.
Smishing, a play on "phishing," utilizes text messages to deceive individuals and corporations into revealing personal or financial information, clicking on malicious links, or downloading harmful software.

Stuart Jones of US cybersecurity firm Proofpoint, to news agency AFP, "Smishing attacks involve sending deceptive text messages to lure victims into compromising their information."
The rapid growth of this fraud coincides with the explosion in smartphone use, particularly during the pandemic, as people relied more heavily on their devices for administrative tasks and online shopping.

According to a study by the Mobile Ecosystem Forum, a telecom industry association, 39% of consumers in ten surveyed countries encountered at least one smishing attempt in the past year.
"This is a serious global issue," stated Janet Lin, head of development at Taiwanese cybersecurity firm PINTrust, during an MWC panel discussion, as per the AFP report.
Proofpoint estimates that between 300,000 and 400,000 smishing attacks occur daily, with this number expected to rise. In the US alone, smishing losses doubled from 2021 to 2022 and reached nearly five times the amount lost in 2019, according to the Federal Trade Commission.

What makes SMS fraud dangerous
Difficulty identifying perpetrators: Unlike

email scams

, tracing smishing attackers can be challenging.
Higher trust in mobile communication: Many individuals have a higher level of trust in the security of text messages.
Increased click rates: Click rates on links sent via text message are significantly higher compared to email.
Authorities also point to the growing sophistication of these attacks, with criminals using specialized data sellers and sophisticated tools like "stingrays" to intercept mobile communications.
While many countries offer reporting platforms for suspicious text messages, the constant evolution of tactics and discrepancies in global regulations make complete eradication a complex task. Experts emphasize prevention as a key strategy. "Consumers need to be skeptical of messages from unknown sources and never click on links, regardless of how realistic they appear," advised Jones.