Scam text messages cost consumers $330 million in losses during 2022, according to the Federal Trade Commission (FTC). The median reported loss reached $1,000 per victim, representing more than double the reported losses in 2021 and nearly five times the losses reported in 2019.
Text message scams have grown in both sophistication and frequency. Consumers reported 25,725 bank mobile alert text scams in 2022, compared to just 2,231 in 2020. The FBI identified at least 244 people who lost a combined $42.7 million to fake crypto investment scams that originated from text messages.
The speed at which these text message scams can drain your bank account makes them particularly dangerous. While only about 6% of people who report text message fraud actually lose money, those who do fall victim often face significant financial consequences. The FTC received 334,524 complaints about fraudulent texts in 2020, averaging 916 reports each day.
This guide will help you identify scam text messages before they can harm you financially. You’ll learn practical strategies to protect yourself from text message scams and discover what to do if you receive suspicious texts claiming to be from your bank or other trusted institutions.
What Are Scam Text Messages?
Text scams represent a serious form of fraud that targets you through your phone’s messaging system. These deceptive messages pose a real threat to your financial security, not just an inconvenience.
Definition of smishing and phishing text messages
Smishing combines “SMS” (short message service) and “phishing,” describing fraudulent text messages designed to trick you into sharing sensitive information or downloading harmful software. Smishing is essentially phishing conducted through text messages rather than emails. This threat became widespread in 2023, with 75% of organizations experiencing smishing attacks.
Smishing attacks take advantage of our tendency to trust and quickly respond to text messages. These scams might appear as urgent alerts from banks, package delivery notices, or account security warnings-all designed to create immediate concern.
Why scammers use text messages
Scammers prefer text messages for several practical reasons. Text messages have significantly higher engagement rates-SMS click-through rates range between 8.9% and 14.5%, whereas emails average only a 2% click rate.
Smartphones make it harder to verify suspicious links since you cannot hover over them to see their destination as you can on computers. Most people have grown accustomed to receiving shortened URLs in texts, making suspicious links seem normal.
Our habit of checking messages immediately also benefits scammers. This urgency works in their favor, giving you less time to think critically about the message’s legitimacy.
How these scams can lead to bank fraud
Bank impersonation represents the most common type of text message scam, accounting for 10% of all smishing attempts. These scams typically claim there has been suspicious activity on your account, an unauthorized transaction, or that your account has been locked.
Once you engage, scammers might direct you to:
- Enter login credentials on a fake website
- Provide account numbers, PINs, or Social Security numbers
- Download malicious apps that steal data
- Call fake customer service numbers where scammers pose as bank representatives
The goal remains the same: gaining access to your financial accounts or gathering enough personal information to commit identity theft. Sometimes, scammers will call you directly after sending texts, using technology to make their calls appear to come from legitimate bank phone numbers.
How to Identify a Scam Text Message
Recognizing scam text messages can take some practice, but learning the warning signs will help protect your financial information. Scammers sent 87.8 billion spam text messages last year and defrauded victims of over $10 billion. You can avoid becoming part of these statistics by watching for specific red flags.
Urgent or threatening language
Scammers create false urgency to pressure you into acting without thinking. They use threats or time pressure so you’ll provide information hastily. Messages claiming “immediate action required” or threatening account closure are designed to bypass your rational thinking. Legitimate businesses never demand instant responses under threat, so any message creating panic should raise suspicion.
Suspicious links or unknown senders
You should be extremely cautious with messages from unfamiliar numbers or unexpected texts from companies you recognize. Scammers often include shortened URLs or scrambled links. The safest approach when receiving suspicious texts is to avoid any interaction-don’t reply, click links, or engage in any way. Even responding “STOP” confirms that your number is active, which can lead to more scam attempts.
Requests for personal or financial information
No legitimate organization will ever request sensitive information through text messages. Scammers frequently pose as trusted companies or government agencies to steal your data. They may ask for account numbers, PINs, Social Security numbers, or passwords. You should never provide this type of information in response to any text message, regardless of how official it appears.
Fake bank text messages and spoofed numbers
Bank impersonation texts are particularly 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 appear to come from your own phone number. If you receive any banking-related text, contact your bank directly through their official phone number or website to verify the message.
Grammar errors and strange formatting
Poor grammar and spelling mistakes often appear in scam texts. Some scammers deliberately include errors to filter out more cautious individuals. However, you shouldn’t rely solely on this indicator since not all scam texts contain obvious mistakes. Professional-looking messages can still be fraudulent, so consider all warning signs together rather than dismissing a message because it appears well-written.
Ways to Protect Yourself from Text Message Scams
Protecting yourself from text message scams requires several practical steps that work together to safeguard your financial information. Consider the following strategies to reduce your vulnerability to these increasingly common threats.
Enable spam filters on your phone
Your smartphone includes built-in protection against suspicious messages. iPhone users can activate these filters by opening Settings > Messages, then enabling “Filter Unknown Senders”. Android users should open the Messages app, tap their profile icon, select Settings, then activate “Spam protection”. These filters automatically separate potential scam messages from your main inbox.
Use two-factor authentication on bank accounts
Two-factor authentication (2FA) creates an additional security layer for your accounts. Even if scammers obtain your password, they cannot access your account without the secondary verification. The Federal Trade Commission describes using 2FA as “using two locks on your door” and notes it makes unauthorized account access 99% less likely.
Avoid clicking on unknown links
Links in suspicious texts can install harmful software or direct you to fake websites designed to steal your information. No matter how urgent a message appears, avoid clicking links from unknown senders.
Don’t respond to unsolicited messages
Replying to unwanted texts, even with “STOP,” confirms your number is active and may trigger additional scam attempts. Delete suspicious messages without any response.
Educate family members, especially older adults
Children and seniors face particular vulnerability to text scams. Schedule regular conversations about recognizing suspicious messages, and encourage family members to consult with you before responding to questionable texts. When visiting seniors, consider helping them set up spam-blocking applications.
How to Report Scam Text Messages
Reporting suspicious messages helps protect others from similar scams. These simple steps can make a real difference in combating text message fraud.
Forward the message to 7726 (SPAM)
Forward suspicious texts to 7726 (spells “SPAM” on most keypads) to alert your cellular provider about potential threats. This free service helps wireless companies identify and block similar messages for all users. You’ll typically receive a response asking for the sender’s phone number to complete the report.
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. The FTC shares these reports with law enforcement agencies.
Use your messaging app’s spam reporting feature
Modern smartphones offer built-in reporting tools:
- iPhone users: When receiving messages from unknown senders, tap “Report Spam” at the bottom of the screen, 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 texts claiming to be from your bank, never respond directly. Contact your bank through official channels such as their public phone number or website. Many banks have dedicated email addresses for reporting phishing attempts, like [email protected].
Bottom Line
Text message scams pose a serious threat to your financial security, but recognizing the warning signs can protect you from becoming a victim. Scammers rely on creating urgency and fear to bypass your better judgment, but staying alert to their tactics gives you the advantage.
Your best defense involves a combination of awareness and practical action. Enable spam filters on your phone, avoid clicking unknown links, and never provide personal information through text messages. Remember that legitimate businesses will not request sensitive information via text.
When you receive suspicious messages, report them to help protect others. Forward questionable texts to 7726, file reports with the FTC, and use your phone’s built-in reporting features. If a message claims to be from your bank, contact them directly through their official phone number or website to verify.
The most important rule remains simple: when in doubt, verify before you act. Taking a moment to confirm a message’s legitimacy through official channels can save you significant financial and personal trouble. Scammers count on quick, emotional responses, so slowing down and thinking critically puts you ahead of their game.
You have the tools and knowledge needed to spot these scams before they can cause harm. Trust your instincts, stay informed about new tactics, and remember that protecting yourself also helps protect your family and community from these threats.
FAQs
Q1. How can I identify a scam text message? Look for urgent or threatening language, suspicious links, requests for personal information, and poor grammar. Be wary of messages from unknown senders 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 on any links or respond to the message. Instead, delete it 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? While replying doesn’t instantly give scammers access to your information, it confirms that your number is active, potentially leading to more scam attempts. It’s best not to engage with suspicious messages 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 on unknown links, and never respond to unsolicited messages. Educate your family members, especially older adults, about recognizing scam texts.
Q5. What should I do if I receive a text claiming to be from my bank? Never respond directly to such messages. Instead, contact your bank through their official channels, such as their public phone number or website, to verify the legitimacy of the message. Many banks have dedicated email addresses for reporting phishing attempts.
