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The Growing Threat of Smishing: How to Protect Your Fintech Accounts

A Report by CYS Global Remit FinTech Development Unit


Smishing attacks, phishing scams conducted via SMS and messaging platforms like WhatsApp, are rapidly increasing in frequency and sophistication. Fintech users face a particularly high risk, as these attacks target individuals with direct access to financial accounts and sensitive personal data.


What is Smishing?

Smishing combines "SMS" and "phishing" to describe fraudulent attempts to obtain sensitive information through text messages or messaging applications. Unlike traditional email phishing, smishing exploits the immediacy and personal nature of mobile communications, making victims more likely to trust and respond to malicious messages.


These attacks typically involve messages containing malicious links or contact information that directs victims to fake websites or connects them with scammers impersonating legitimate customer service representatives.


How Scammers Operate

Scammers employ several sophisticated techniques to deceive their targets. They replicate official branding elements such as logos, corporate language, and formatting to create convincing forgeries. Phone numbers and display names are carefully chosen to resemble legitimate contact information from banks, delivery services, government agencies, and major corporations.


On WhatsApp specifically, attackers often pose as family members claiming to have a new phone number, typically requesting urgent financial assistance. Other scammers impersonate support agents from financial institutions, requesting one-time passwords or security codes under the guise of account verification.


A hallmark of smishing attacks is manufactured urgency. Messages contain alarming statements designed to bypass rational decision-making, such as "Your account will be locked within one hour" or "Suspicious activity detected, confirm your identity now." This false urgency compels victims to act impulsively without proper verification.


Why Fintech Users Are Targeted

Fintech applications, including digital wallets, investment platforms, and mobile banking apps, provide immediate access to monetary assets. A single compromised login credential or intercepted one-time password can result in instant financial loss.


Many fintech users manage their accounts exclusively through mobile devices, the same channel through which smishing attacks are delivered, creating opportunities for confusion between legitimate security notifications and fraudulent messages.


How to Protect Yourself

When you receive any message requesting that you click a link, provide personal information, or share authentication codes, pause before taking action. Always verify through independent channels:


  • Open your banking app directly rather than following links in messages

  • Contact your financial institution using official phone numbers found on their website


Remember: Legitimate financial institutions will never request one-time passwords, complete passwords, full card numbers, or identification numbers through messaging platforms or unsolicited phone calls. If someone claiming to represent your bank requests this information, it is almost certainly a scam.


If you identify a fraudulent message:


  • Block the sender immediately

  • Report it to your mobile carrier or messaging platform

  • Alert your bank or fintech service provider so they can monitor your account for suspicious activity


Conclusion

As smishing attacks continue to evolve; vigilance remains your strongest defence. Healthy scepticism and independent verification are not inconvenient; they are necessities for protecting your financial accounts and personal information. 


 Reference

  1. FINRA – Be Alert to Investor Risks from SMS Phishing Scams (Smishing)  https://www.finra.org/investors/insights/sms-phishing-scamsfinra 

  2. Kaspersky – What is Smishing & How to Defend Against it https://www.kaspersky.com/resource-center/threats/what-is-smishing-and-how-to-defend-against-itkaspersky 

  3. Cynance – Smishing Text Messages Bring Cyber Attacks To Phones (includes WhatsApp examples) https://www.cynance.co/smishing-text-messages-are-cyber-attacks-on-phones/cynance 

  4. SecurityBrief Asia – WhatsApp and QR codes the next scam threat – report https://securitybrief.asia/story/whatsapp-and-qr-codes-the-next-scam-threat-reportsecuritybrief 

  5. Fintech Magazine – Phishing: One of the Most Common Security Threats in Banking & Fintech https://fintechmagazine.com/fraud-id-verification/phishing-one-of-the-most-common-security-threats-in-bankingfintechmagazine 

  6. Red Sift – 41% of top Fintech companies are vulnerable to phishing https://redsift.com/guides/blog_41-of-top-fintech-companies-are-vulnerable-to-email-phishingredsift  

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