According to the FTC, consumers reported losing $470 million to text message scams in 2024, a fivefold increase from 2020. The rise of text-message-based scams, known as smishing, has quickly become one of the fastest-growing threats to bank customers. With the Federal Bureau of Investigations (FBI) and Federal Trade Commission (FTC) issuing urgent warnings, now is the time for consumers to understand what smishing is, how it works, and the steps they can take to stay safe.

How text message scams are evolving in banking.

Smishing is a form of cyber fraud where criminals use text messages to trick victims into clicking on malicious links or sharing personal information. Banks have become targets because fraudsters know that consumers are more likely to trust urgent or official-looking messages from financial institutions.

How smishing can lead to identity theft and financial loss.

Clicking on a smishing link can expose victims to malware or phishing websites designed to capture login credentials. Once criminals gain access to a bank account, they can empty funds, lock customers out of their accounts or transfer money to unknown accounts. Additionally, stolen personal information can be used to open new credit lines, apply for loans, or commit other forms of identity theft. This can damage a victim’s credit score and lead to long-term financial and reputational harm.

How to spot the scam.

Smishing attempts often imitate real banking alerts. These tactics are designed to trigger a quick reaction before you stop to question whether the message is real. Common red flags include:

• Urgent language pressuring you to act quickly. Think: “Your account will be locked unless you verify now”
• Suspicious or shortened links designed to look trustworthy at first glance.
• Fake security alerts or verification requests pretending to come from your bank.
• Spoofed logos, numbers, or language that mimic official bank communications.

What FBI and FTC warnings mean for everyday bank customers.

The FBI and FTC have both issued alerts urging consumers to delete suspicious texts immediately. Their guidance is clear:

• Banks will never ask for PINs, passwords, or other sensitive information via text.
• Any text pressuring you to share personal information should be treated as a scam.
• Smishing attempts are on the rise nationwide and vigilance is important.

If a text claims to be from your bank but asks for personal details, it’s likely a scam. Reach out to a bank representative directly to report this text.

What to do if you receive a suspicious banking text.

If you get a questionable text, here are the safest steps to take:

1. Do not click on any suspicious links in the message.
2. Contact your bank directly using the number on its official website or on the back of your bank card.
3. Forward the message to 7726 (SPAM). It helps wireless providers block scam numbers.
4. File a report with the FTC at ReportFraud.ftc.gov.
5. Strengthen account security with two-factor authentication and real-time account alerts.
6. Monitor accounts and credit reports regularly to catch fraudulent activity early.

Protecting yourself from smishing.

Smishing scams are growing in sophistication and impact, but awareness is the first line of defense. By knowing the warning signs, following federal guidance, and using proactive security tools, you can protect your money and your identity.

For more updates on recent fraud trends, visit our Fraud Prevention page at efirstbankblog.com.

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Published: September 26, 2025