What is Smishing? Essential Cybersecurity Guide for Business Owners

Your employees receive dozens of text messages daily, but what happens when one of those seemingly innocent texts threatens your entire business? Welcome to the world of smishing—a cyberthreat that's rapidly becoming every business owner's nightmare.

What is Smishing?

What is smishing? Simply put, smishing is SMS phishing—a cyberattack where criminals send fraudulent text messages pretending to be from trusted companies, banks, or government agencies. The goal is to trick recipients into revealing sensitive information like passwords, credit card numbers, or clicking malicious links that can compromise your business systems.

The name combines "SMS" (Short Message Service) and "phishing," perfectly describing this mobile-focused attack method that's catching businesses off guard.

The Growing Threat: By the Numbers

The statistics around smishing are alarming, especially for business owners:

• 147 million smishing texts are sent daily to mobile users, representing a 20% increase from the previous year

• 45% of mobile threats are now SMS-based smishing attacks, with incidents increasing by 22% in Q3 2024

• The average cost of a successful smishing attack on an organization exceeded $9.5 million in 2022

• 484,500 malicious smishing attempts were reported in the US in 2023—more than any other country

Industries most targeted by smishing include:

• Finance and Insurance (33% of businesses)

• Healthcare (27% of organizations)

• Government (23% of incidents)

• Retail/E-commerce (19% of companies)
  

Recognizing Smishing Attempts

Training your team to spot smishing messages is your first line of defense. Watch for these red flags:

• Urgent language: Messages demanding immediate action ("Your account will be suspended!") • Suspicious links: Shortened URLs or links that don't match the supposed sender • Poor grammar and spelling: Professional organizations rarely send messages with obvious errors • Requests for sensitive information: Legitimate companies won't ask for passwords or Social Security numbers via text • Generic greetings: Messages that don't use your actual name or account details

Common brand impersonations include Amazon (38%), Apple (17%), and PayPal (12%), so be especially wary of texts claiming to be from these popular services.

Protecting Android Devices

Android users have several built-in options to combat smishing:

Enable Spam Protection: • Open the Messages app • Tap the three-dot menu in the upper right corner • Select Settings > Spam Protection • Toggle "Enable Spam Protection" to ON

Block Individual Numbers: • Long-press on a suspicious message • Tap the three-dot menu • Select "Block" and check "Report spam"

Additional Android Protection: • Install carrier-provided protection (Verizon Call Filter, T-Mobile Scam Shield) • Consider third-party apps like Call Control or Nomorobo for enhanced filtering • Keep your device's operating system updated • Review app permissions regularly

Protecting iOS Devices

iPhone users can take advantage of Apple's built-in security features:

Filter Unknown Senders: • Go to Settings > Messages • Scroll to "Message Filtering" • Toggle "Filter Unknown Senders" to ON

Block Specific Numbers: • Open the suspicious message • Tap the sender's number at the top • Tap the "Info" icon • Select "Block this Caller" • Confirm by tapping "Block Contact"

Enhanced iOS Security: • Enable automatic security updates • Use carrier protection services (AT&T Call Protect, etc.) • Install reputable security apps like Hiya or TextKiller • Regularly review and update your contact list

Best Practices for Business Protection

Beyond device-level protection, implement these company-wide strategies:

Employee Education: • Conduct regular cybersecurity awareness training • Share examples of recent smishing attempts targeting your industry • Establish clear protocols for reporting suspicious messages

Technical Safeguards: • Implement multi-factor authentication (MFA) across all business systems • Use mobile device management (MDM) solutions for company phones • Regular security assessments of your mobile infrastructure • Backup critical business data regularly

Response Procedures: • Report suspicious texts to 7726 (SPAM) • Forward concerning messages to the FTC at ReportFraud.ftc.gov • Document any suspected smishing attempts for security analysis • Never reply to suspicious messages, even to say "STOP"

The Bottom Line

Smishing represents a significant and growing threat to businesses of all sizes. With global financial losses from phishing reaching $17.4 billion in 2024—a 45% increase from the previous year—the cost of inadequate protection far exceeds the investment in proper cybersecurity measures.

The key to protection lies in combining technology solutions with human awareness. While built-in smartphone features provide a good foundation, they're most effective when paired with comprehensive employee training and robust cybersecurity policies.

Remember, cybercriminals are constantly evolving their tactics, making it essential to stay vigilant and regularly update your security measures. By implementing the protection strategies outlined above and maintaining a security-conscious culture, your business can significantly reduce its risk of falling victim to smishing attacks.

Don't wait until your business becomes another statistic. Take action today to protect your organization, your employees, and your valuable data from the growing threat of smishing attacks.