How to Spot Scam Text Messages Before They Empty Your Bank Account

In 2022, scam text messages cost consumers $330 million, according to the Federal Trade Commission. The median loss was $1,000 per victim—more than double the losses reported in 2021 and nearly five times the 2019 figure.

Text message scams have become more frequent and sophisticated. Consumer reports of bank mobile alert scams jumped from 2,231 in 2020 to 25,725 in 2022. The FBI documented at least 244 people who lost a combined $42.7 million to fake crypto investment scams delivered via text.

Text message scams are dangerous because they can drain your bank account quickly. Only about 6% of people who report text fraud actually lose money, but those who do often face serious financial consequences. The FTC received 334,524 complaints about fraudulent texts in 2020—an average of 916 per day.

This guide will help you spot scam text messages before they cause harm. You'll learn how to protect yourself and what to do if you receive suspicious texts claiming to be from your bank or other trusted sources.

• What are scam text messages?
  • Seniors face particular risk from text scams. Two common types are smishing and phishing. Both try to trick you into revealing sensitive information, but they work differently. Phishing typically uses fake emails that appear to come from real sources like banks or government agencies. These emails try to get you to click malicious links or download infected attachments.
  • Why scammers use text messages
  • How these scams can lead to bank fraud
• How to identify a scam text message
  • Urgent or threatening language
  • Suspicious links or unknown senders
  • Requests for personal or financial information
  • Bank impersonation texts often use spoofed numbers to appear legitimate. Scammers may even make texts look like they're coming from your own phone number. If you get a banking-related text, contact your bank directly through their official phone number or website to verify it.
  • Grammar errors and strange formatting
• Ways to protect yourself from text message scams
  • Enable spam filters on your phone
  • Use two-factor authentication on bank accounts
  • Avoid clicking on unknown links
  • Don't respond to unsolicited messages
  • Educate family members, especially older adults
• How to report scam text messages
  • Forward the message to 7726 (SPAM)
  • Report to the FTC at reportfraud.ftc.gov
  • Use your messaging app's spam reporting feature
  • Contact your bank if the message claims to be from them
• Bottom line
• FAQs

What are scam text messages?

Text scams are a serious form of fraud that targets you through text messaging. These messages are a real threat to your financial security.

Smishing and phishing attacks

Cyber threats come in different forms. Smishing and phishing are common social engineering attacks that try to trick you into revealing sensitive information. The main difference is their delivery method: phishing uses email, while smishing targets you through text messages. Understanding the difference helps you defend against both.

Smishing combines "SMS" and "phishing." It's a fraudulent text message designed to trick you into sharing sensitive information or downloading malware. In 2023, 75% of organizations experienced smishing attempts.

Smishing works because we tend to trust text messages and respond quickly to them. Scammers might send urgent alerts that look like they're from your bank, package delivery notices, or account security warnings—all designed to make you act fast without thinking.

Why scammers use text messages

Text messages get more attention than email. SMS click-through rates range from 8.9% to 14.5%, compared to an average 2% for email.

On smartphones, you can't hover over links to see where they actually go, the way you can on a computer. Shortened URLs in texts have become so common that suspicious links don't stand out.

We check text messages immediately, which works to the scammer's advantage. The faster you respond, the less time you have to think critically about what you're reading.

How these scams can lead to bank fraud

Bank impersonation is the most common text scam, accounting for 10% of all smishing attempts. These messages typically claim suspicious activity on your account, an unauthorized transaction, or that your account has been locked.

Once you engage, scammers direct you to:

• Enter login credentials on a fake website
• Provide account numbers, PINs, or Social Security numbers
• Download malicious apps that steal your data
• Call fake customer service numbers where scammers pose as bank representatives

The goal is to access your financial accounts or gather enough personal information for identity theft. Some scammers will call you directly after texting, using technology to make the call appear to come from your bank's real phone number.

How to identify a scam text message

Learning to spot scam texts takes practice, but it's worth the effort. Last year, scammers sent 87.8 billion spam texts and stole over $10 billion from victims. Knowing what to look for keeps you from becoming one of them.

Urgent or threatening language

Scammers create false urgency to pressure you into acting without thinking. They might threaten to close your account or demand "immediate action." Legitimate companies never force you to respond under threat, so any message that causes panic should raise red flags.

Suspicious links or unknown senders

Be cautious with texts from unfamiliar numbers or unexpected messages from companies you recognize. Scammers often include shortened or scrambled URLs. The safest approach is to avoid any interaction: don't reply, click links, or engage with the message. Even responding "STOP" tells the scammer your number is active, which can lead to more attempts.

Requests for personal or financial information

No legitimate organization will ask for sensitive information by text. Scammers pose as trusted companies or government agencies to steal your data. They may ask for account numbers, PINs, Social Security numbers, or passwords. Never provide this information in response to any text message, no matter how official it looks.

Fake bank text messages and spoofed numbers

Bank impersonation texts are common, often claiming suspicious account activity. Scammers use technology to "spoof" numbers, making messages appear to come from legitimate sources. Sometimes they'll even send texts that look like they're from your own phone number. If you get any banking-related text, contact your bank directly through their official phone number or website to verify it.

Grammar errors and strange formatting

Poor grammar and spelling mistakes often appear in scam texts. Some scammers deliberately include errors to target less cautious people. However, don't rely on this alone—professional-looking messages can still be fraudulent. Consider all the warning signs together rather than dismissing a message just because it's well-written.

Text message scams are a growing problem. These messages use tricks to get you to share personal details, click bad links, or send money. Protecting yourself starts with understanding how scammers operate.

Several practical steps can help you stay safe from text scams.

Enable spam filters on your phone

Your smartphone has built-in protection. iPhone users: go to Settings > Messages and enable "Filter Unknown Senders." Android users: open the Messages app, tap your profile icon, select Settings, and activate "Spam protection." These filters automatically move potential scam messages out of your main inbox.

Use two-factor authentication on bank accounts

Two-factor authentication (2FA) adds an extra security layer to your accounts. Even if scammers get your password, they can't access your account without the second verification step. The Federal Trade Commission notes that 2FA makes unauthorized access 99% less likely.

Avoid clicking on unknown links

Links in suspicious texts can install malware or take you to fake websites designed to steal information. Don't click links from unknown senders, no matter how urgent the message appears.

Don't respond to unsolicited messages

Replying to unwanted texts—even with "STOP"—confirms your number is active and may trigger more scam attempts. Delete suspicious messages without responding.

Educate family members, especially older adults

Seniors and children are particularly vulnerable to text scams. Talk regularly with family members about recognizing suspicious messages, and encourage them to ask you before responding to questionable texts. When visiting older relatives, consider helping them set up spam-blocking apps.

How to report scam text messages

Reporting suspicious messages helps protect others. Here's how to do it.

Forward the message to 7726 (SPAM)

Forward suspicious texts to 7726 to alert your cellular provider about potential threats. This free service helps wireless companies identify and block similar messages for all users. You'll usually get a response asking for the sender's phone number.

Report to the FTC at reportfraud.ftc.gov

The Federal Trade Commission collects scam reports at ReportFraud.ftc.gov. Filing a complaint helps authorities track scam patterns and potentially take action against fraudsters.

Use your messaging app's spam reporting feature

Most smartphones have built-in reporting tools:

• iPhone users: Tap "Report Spam" at the bottom of the message, then select "Delete and Report Spam."
• Android users: Open the message, tap the three dots in the upper right corner, then select "Block & Report Spam."

Contact your bank if the message claims to be from them

If you receive a text claiming to be from your bank, don't reply to it. Instead, contact your bank through official channels—their public phone number or website. Many banks have dedicated email addresses for reporting phishing attempts.

Bottom line

Text scams threaten your financial security, but you can protect yourself by spotting the warning signs. Scammers create urgency and fear to make you act without thinking, but staying alert to their tactics keeps you safe.

Start by enabling spam filters, avoiding unknown links, and never sharing personal information via text. Remember: legitimate businesses won't ask for sensitive information through texts.

When you see a suspicious message, report it to help others. Forward it to 7726, file a report with the FTC, or use your phone's reporting features. If a message claims to be from your bank, verify it by contacting the bank directly through official channels.

The simplest rule: when in doubt, verify before you act. A quick call to your bank or a moment to think critically can save you serious financial trouble. Scammers count on fast, emotional responses—slowing down puts you ahead of their game.

You have the tools and knowledge to spot these scams. Trust your instincts and stay informed. When you protect yourself, you help protect your family and community too.

FAQs

Q1. How can I identify a scam text message? Watch for urgent or threatening language, suspicious links, requests for personal information, and poor grammar. Be wary of messages from unknown numbers or those claiming to be from your bank. Legitimate organizations won't ask for sensitive information via text.

Q2. What should I do if I receive a suspicious text message? Don't click any links or respond. Delete the message and report it to your cellular provider by forwarding it to 7726 (SPAM). You can also report it to the Federal Trade Commission at reportfraud.ftc.gov.

Q3. Can scammers access my information if I reply to their text? Replying doesn't immediately give scammers access to your information, but it confirms your number is active, which can lead to more scam attempts. It's best not to engage at all.

Q4. How can I protect myself from text message scams? Enable spam filters on your phone, use two-factor authentication for your accounts, avoid clicking unknown links, and don't respond to unsolicited messages. Educate your family, especially older adults, about recognizing scam texts.

Q5. What should I do if I receive a text claiming to be from my bank? Don't reply to the message. Instead, contact your bank directly through their official phone number or website to verify it. Many banks have dedicated email addresses for reporting phishing attempts.