The seemingly innocent “Hello?” text message from an unknown number has become an ubiquitous part of modern communication. But for businesses, these simple messages can be the first step in a sophisticated cyberattack that threatens company data, financial assets, and reputation. Understanding this evolving threat is essential for protecting your organization in an increasingly mobile-first business environment.
Understanding the Threat of SMS Phishing (Smishing)
SMS phishing, commonly known as “smishing,” combines SMS text messaging with phishing techniques to trick recipients into revealing sensitive information or installing malicious software. Unlike traditional email phishing, smishing exploits the immediacy and personal nature of text messages, taking advantage of our tendency to respond quickly to mobile notifications.
Smishing has become increasingly prevalent in the business world. These attacks increased by 700% in the first half of 2021 compared to 2020. Even more alarming, 75% of organizations reported such attacks in 2023. For businesses, the consequences can be severe—compromised accounts, data breaches, financial losses, and damaged customer trust.
What makes smishing particularly dangerous is its simplicity and effectiveness. Text messages have a 98% open rate, typically within minutes of receipt. This immediate engagement gives attackers a significant advantage over other forms of cybercrime that might be filtered or ignored.
Why Simple “Hello” Texts Are More Dangerous Than They Appear
That innocuous “Hello” text is often a reconnaissance tactic. When scammers send these messages, they’re primarily testing whether your phone number is active and whether you’ll engage. Any response—even a simple “Who is this?” or “Wrong number”—provides valuable information to the attacker.
By confirming your number is active, you’ve inadvertently moved yourself higher on their target list. Scammers may then either continue the conversation, attempting to build rapport and trust, or add your verified number to databases sold to other criminals for future, more targeted attacks.
The psychology behind these messages is carefully calculated. They leverage our natural inclination to be helpful and responsive, especially in professional settings where customer service and communication are valued. Business professionals are particularly vulnerable because they’re accustomed to responding to unknown contacts who might be potential clients or partners.
Common Smishing Tactics Targeting Businesses
Smishers targeting businesses employ several sophisticated approaches:
Financial institution impersonation remains one of the most common tactics. Messages claim suspicious activity on company accounts, requiring immediate verification. These often create urgency by suggesting financial transactions are being declined or accounts frozen.
Delivery notification scams have surged as businesses increasingly rely on e-commerce. Messages claiming to be from UPS, FedEx, or other carriers alert recipients to “delivery issues” requiring immediate action, often via malicious links.
HR and internal communications impersonation has proven particularly effective. Messages appearing to come from executives or HR departments request urgent actions, exploiting workplace hierarchies to pressure employees into compliance. These might include requests to purchase gift cards, update payment information, or provide login credentials for “new systems.”
Customer support impersonation targets both businesses and their customers. By posing as support representatives, attackers can extract valuable information from both sides of the business relationship.
Recognizing the Red Flags of Smishing Attempts
For businesses, distinguishing between legitimate communications and smishing attempts requires vigilance and education. While attackers continuously refine their techniques, certain patterns remain consistent in most smishing attempts.
The foundation of smishing defense is maintaining healthy skepticism toward unexpected text messages, especially those requesting action or information. This doesn’t mean treating every message as suspicious, but rather taking a moment to verify before responding or clicking.
Telltale Signs of a Smishing Text
Several red flags can help identify potential smishing attempts:
- Unexpected contact from unknown numbers requesting interaction should immediately raise concerns, particularly when the initial message is vague or generic like “Hello” or “Hi there.”
- Urgent language creating time pressure is a classic manipulation tactic. Messages claiming “immediate action required” or “respond within 24 hours to avoid penalties” attempt to override critical thinking.
- Links in text messages should always be treated with caution, especially shortened URLs that mask their true destination. Legitimate business communications typically avoid sending sensitive links via text or provide alternative verification methods.
- Requests for personal or business information via text should be considered suspicious. Legitimate organizations rarely request sensitive details like passwords, account numbers, or financial information through text messages.
- Unprofessional language, unusual tone, or grammatical errors can indicate smishing, though sophisticated attackers often craft nearly flawless messages. Pay attention to subtle inconsistencies in communication style compared to legitimate messages from the purported sender.
How Scammers Leverage Social Engineering
Social engineering—the psychological manipulation of people into performing actions or divulging information—forms the backbone of successful smishing attacks.
In business environments, scammers exploit established hierarchies by impersonating executives or managers. An employee receiving what appears to be an urgent request from the CEO is naturally inclined to respond quickly, potentially bypassing security protocols in the process.
Attackers also research their targets, incorporating specific company terminology, recent events, or ongoing projects to create convincing narratives. A message referencing your actual shipping vendor, current software implementation, or recent company announcement appears significantly more credible.
The most sophisticated attacks build familiarity over time. Rather than immediately requesting sensitive information, attackers may engage in seemingly harmless conversation before eventually introducing their actual request, having established a relationship that lowers the victim’s defenses.
Protecting Your Business from Smishing Attacks
Defending against smishing requires a comprehensive approach combining technical solutions with human awareness and clear organizational policies.
No single safeguard can provide complete protection—effective defense requires multiple layers of security working in concert. While technical tools play an important role, human awareness remains your most crucial defense against these socially engineered attacks.
Establishing Clear Communication Protocols
Create and document official channels for sensitive business communications. Clearly define how legitimate requests involving financial transactions, account access, or sensitive information will be communicated. For example, specify that password resets will never be initiated via text message.
Develop verification procedures for unexpected or unusual requests. This might include calling the supposed sender on a known number (not one provided in the suspicious message), confirming in person, or using a separate authenticated communication channel.
Implement a straightforward internal reporting system for suspicious messages. Employees should know exactly who to contact and how to report potential smishing attempts without fear of reprisal, even if they’ve already responded to the message.
Technical Safeguards Against Smishing
Mobile Device Management (MDM) solutions provide businesses with centralized control over company-owned devices, allowing for consistent security policies, remote wiping of compromised devices, and application of security updates.
SMS filtering tools can help identify and quarantine suspicious messages before they reach employees. Major mobile carriers offer business-specific filtering options that can be implemented across company accounts.
Consider moving beyond SMS-based two-factor authentication (2FA) for sensitive systems. While any 2FA is better than none, SMS-based verification is vulnerable to interception. Authenticator apps or hardware security keys provide stronger protection for critical business systems.
Manage application permissions carefully on all devices accessing company information. Legitimate applications rarely need access to SMS messages, and limiting these permissions can prevent malware from intercepting verification codes or monitoring communications.
What to Do If Your Business Has Been Targeted
Despite best preventive efforts, businesses may still fall victim to smishing attacks. Having a clear response plan can minimize damage and accelerate recovery.
The effectiveness of your response often depends on how quickly you act. Minutes can make the difference between a minor security incident and a major breach with significant financial and reputational consequences.
Immediate Response Protocol
If an employee has already responded to a suspicious text or clicked a link, don’t panic—but act quickly. Immediate steps should include disconnecting the affected device from your network, documenting the incident (taking screenshots of the messages), and changing passwords for any potentially compromised accounts from a different, secure device.
For financial accounts that may be compromised, contact your financial institutions immediately to place alerts or freezes on affected accounts. Many banks have dedicated fraud departments that can help prevent unauthorized transactions if notified promptly.
Conduct a preliminary assessment to determine what information might have been compromised. This helps prioritize your response efforts and determine whether additional resources or expertise are needed.
Engage your IT security team or external security professionals to conduct a thorough investigation of potentially affected systems. They can help identify whether malware was installed, data was exfiltrated, or if the attack was an isolated incident.
Reporting and Recovery Resources
Report the smishing attempt to relevant authorities. In the United States, this includes the FBI’s Internet Crime Complaint Center (IC3), the Federal Trade Commission, and your local law enforcement agencies. These reports help authorities track and combat cybercrime trends.
Document the incident thoroughly for insurance purposes, potential legal actions, and to improve your security practices. Include the timeline of events, affected systems, response actions taken, and any known or suspected data compromises.
Consider whether you have legal obligations to notify customers or partners if their data may have been compromised. Depending on your industry and the type of data involved, specific reporting requirements may apply. Consult with legal counsel to ensure compliance with applicable regulations.
Use the incident as an opportunity to strengthen security policies and address any vulnerabilities identified during the investigation. Conduct a formal after-action review to extract lessons learned and implement improvements.
Training Your Team to Be Your First Line of Defense
While technical safeguards are important, your employees remain both your greatest vulnerability and your strongest defense against smishing attacks. Investing in comprehensive security awareness training yields significant returns in preventing successful attacks.
Building a security-conscious culture requires consistent messaging, leadership engagement, and making security a shared responsibility rather than solely an IT department concern.
Effective Security Awareness Training
Develop targeted training that specifically addresses smishing threats. Effective programs include:
- Real-world examples relevant to your industry and business functions
- Simulated smishing tests that safely mimic actual attack techniques
- Clear, actionable guidance on how to identify and report suspicious messages
- Regular reinforcement through brief updates and reminders
- Recognition for employees who successfully identify and report attempts
Make reporting suspicious messages as simple as possible. Complex reporting procedures discourage participation. Consider implementing a dedicated reporting email address or button within your email client for quick submission of suspicious communications.
Conduct regular simulated smishing tests to measure awareness and identify training gaps. These controlled exercises help employees practice their response to suspicious messages without actual risk to your systems.
Developing a Mobile Device Security Policy
- Create a comprehensive mobile device policy that addresses both company-owned and personal devices used for business purposes. The policy should clearly define:
- Minimum security requirements for any device accessing company information, including passcode complexity, biometric authentication, automatic screen locking, and encryption.
- Procedures for reporting lost or stolen devices that might contain company information or communication channels.
- Guidelines for appropriate business communication channels and how sensitive information should be shared (and not shared).
- Application installation policies, including whether employees can install non-approved applications on devices used for business purposes.
- Regular security updates and patching requirements to address known vulnerabilities.
- For businesses with Bring Your Own Device (BYOD) policies, consider implementing containerization solutions that separate business and personal data, allowing for selective management and wiping of company information without affecting personal content.
Staying Ahead of Evolving Smishing Threats
The smishing landscape continues to evolve rapidly, with attackers employing increasingly sophisticated techniques. Maintaining effective defenses requires ongoing vigilance and adaptation to emerging threats.
Organizations must recognize that smishing defense is not a one-time implementation but a continuous process of monitoring, learning, and updating security practices to address new attack vectors.
Emerging Smishing Trends to Watch
AI-generated content has dramatically improved the quality and personalization of smishing attempts. Modern attacks can incorporate specific details about your business, use correct grammar and appropriate business language, and even mimic the writing style of impersonated colleagues.
The rise of Smishing-as-a-Service platforms has lowered the barrier to entry for criminals, allowing even technically unsophisticated attackers to launch sophisticated campaigns. These services provide templates, automation tools, and even customer support to would-be scammers.
Multi-channel attacks now combine smishing with other attack vectors. A text message might be followed by a phone call that references the text, creating a more convincing impression of legitimacy. This coordinated approach makes verification more challenging and increases success rates.
Industry-specific campaigns target businesses with customized approaches based on their sector. Healthcare organizations face different smishing tactics than financial institutions or retailers, with attacks designed to exploit industry-specific workflows and concerns.
Building Long-Term Resilience
Foster a culture of healthy skepticism where verifying unexpected requests is viewed as professional diligence rather than paranoia or inefficiency. Encourage employees to trust their instincts when communications seem unusual.
Implement regular security briefings to keep the team informed about emerging threats and attack patterns. These updates should be concise, relevant, and actionable rather than technical or overwhelming.
Establish clear incident response procedures that are regularly tested and refined. Everyone should understand their role in responding to a potential security breach, from frontline employees to executive leadership.
Participate in industry information sharing groups to benefit from collective intelligence about emerging threats. Many industries have formal or informal networks where security professionals share threat information and best practices.
Conduct periodic security assessments to identify and address vulnerabilities before they can be exploited. These reviews should include not only technical systems but also business processes and human factors that might create security weaknesses.
By implementing these comprehensive measures, your business can significantly reduce the risk of falling victim to smishing attacks while building resilience against evolving threats. Remember that security is a continuous journey rather than a destination—staying informed and adaptable is key to maintaining effective protection in an ever-changing threat landscape.
