Text message scams cost consumers $330 million in 2022, according to a report by the FTC’s Consumer Sentinel Database. The latest consumer protection data spotlight focuses on this form of fraud. With reported losses more than doubling in 2021 and almost five times the losses people reported in 2019, can you spot the five most common text message scams? What about your employees?
First, let’s look at some of the background behind the proliferation of this form of fraud. It is estimated that text messages have an open rate of 98%, compared to only 20% for email, and the cost to send is almost zero. Therefore, people may have become accustomed to responding to this ping with automated clicks.The growth of text message scams should cause businesses to pay special attention. In addition to your family and friends who may be consumers reporting a median personal loss of $1,000, many of the messages have a distinctly “office” tone and may be targeted at your employees – fake deliveries, fake job opportunities ,etc. Businesses should also be concerned that scammers often do their dirty work by stealing the names of well-known companies, with 51% of SMS scam reports in Consumer Sentinel reporting being classified as business imposters.
The data spotlight focuses on these five common text message scams.
1. Counterfeit bank fraud alert. According to Data Spotlight, reports of fake bank text messages have increased nearly 20-fold since 2019, with the median reported personal loss last year being $3,000. People received a text message purportedly from their bank asking them to call a phone number about suspicious activity as soon as possible or answer “yes” or “no” to verify that the transaction was authorized. If they reply, they will receive a call from a fake “Fraud Department” claiming they want to “help you get your money back.” What they really want to do is make unauthorized transfers. In addition, they may ask for personal information such as Social Security numbers, setting the stage for possible identity theft.
2. Fake “gifts” that may cost you. What about those newsletters claiming to be from reputable companies offering free gifts or incentives? If people click on the link and pay the small “shipping fee” with their credit card, they are giving their account information to scammers. Reports from Consumer Sentinel tell us that fraudulent accusations are likely to follow.
3. Fake package delivery problem. On any given day, what home or business no Looking forward to delivery? Scammers understand how our shopping habits are changing and have updated their dirty tactics accordingly. People may receive a text message pretending to be from the U.S. Postal Service, FedEx or UPS claiming there is a problem with the delivery. The text links to a convincing-looking but completely fake website that asks for a credit card number to pay a small “redelivery fee.”
4. Fake job opportunities. As the workplace transforms, some scammers are using text messages to perpetrate old-fashioned forms of fraud, such as fake “mystery shopper” jobs or fake money-making offers to drive around in cars with ads on them. Other text is targeted at people who post resumes on employment sites. They claim to be offering job opportunities and even send checks to job seekers, often with instructions to send a portion of the funds to a different address for the purchase of materials, training, etc. By the time the check bounces, the person’s money – and the false “employer” – is long gone.
5) Security alerts that are not actually from Amazon. People may receive a message that appears to be from Amazon asking to verify a large order they have not placed. Concerned about the security of their accounts, people called the number in the text message and were connected to a fake Amazon representative, who offered to “fix” their accounts. But alas! Several zeros were mistakenly added to the “refund” and the “operator” asked the caller Refund overpayments, usually in the form of a gift card PIN.
According to Data Spotlight, reporting can help stop scam text messages. Forward text to 7726 (spam). This helps your wireless provider block similar messages. Report this on the Apple iMessages app or the Google Messages app for Android users. and report to the FTC: reportfraud.ftc.gov.
Here are additional tips for your employees:
- Don’t click on links or reply to unexpected texts. If you’re not sure whether a text message is legitimate, contact the company directly using a phone number or website you know is real – for example, the 24-hour toll-free number on the back of your credit or bank card. Do not use information from text messages.
- Filter unwanted text before it reaches you. Federal Trade Commission (FTC) makes recommendations Block unwanted text.
