FTC reveals losses of $470M to text message scams

New data from the Federal Trade Commission (FTC) has revealed that consumers lost $470 million to text message scams in 2024.

We’ve all probably received a text message urging us to submit personal information or pay overdue fees.

Phishing SMS messages (AKA smishing) are common tactics used by threat actors to harvest credentials and commit identity theft or fraud.

While you might think you can easily tell a legitimate message from a fraudulent one, the use of sophisticated tools, including artificial intelligence, is making it that much harder to differentiate.

Perhaps this is why the Federal Trade Commission reports that the amount lost to text message scams in 2024 was five times higher than what was reported in 2020.

Types of scams

You’re probably wondering what scams were most prevalent. Well, the FTC said that fake package delivery, where scammers send alerts about an issue with an incoming delivery, was a common culprit.

One unusual tactic employed by threat actors was “task scams,” which involved a hacker claiming to be a legitimate business that promises a person work. They then complete tasks, and the “employer” then requests that person to invest their money.

These tasks tend to be repetitive and menial, like repeatedly liking videos or rating products.

“The supposed ‘job' is to complete tasks in an app or online platform for which you’ll 'earn money' from a 'commission' on each click,” the FTC said in a separate consumer alert.

Another scam, which is widely known, is the false “fraud alert” scam where bad actors pretend to be your bank, alerting you of a suspicious purchase that was never made.

“Wrong number” scams, which often evolve into romance scams, are where someone texts you pretending to have the wrong number.

Once you text back, they start a “friendly” conversation with you, manipulating you into other scams.

Stay alert

To ensure you don’t get caught up in a scam, the FTC recommends that you never click links in unexpected text messages.

The FTC also encourages people to block unwanted texts and filter them before they reach you.

Companies and organizations, like your bank, for example, will never ask you for your personal information via text.

Be wary of job opportunities that seem “too good to be true” and be aware that there might be a bad actor on the end of your “friendly” conversation.