Why The Scam Problem Is Getting Worse
The rise in text scams isn’t just an inconvenience, it’s a growing financial threat. In 2023, the Federal Trade Commission (FTC) reported over $4.6 billion in scams and that number is expected to climb. Several factors contribute to the surge in smishing:
AI-Powered Scams – Fraudsters are now using AI to generate highly convincing messages that mimic official communications.
Spoofed Phone Numbers – Scammers can make texts appear as if they’re coming from your bank or brokerage’s official number.
Lack of Regulation – While the U.S. government has cracked down on robocalls, text scams have largely flown under the radar—until now.
What’s Being Done to Stop It?
While there have been crackdowns on robocalls, text scams have not been as heavily regulated until recently. Regulators and tech companies are finally stepping up efforts to combat smishing:
FCC Crackdowns – The Federal Communications Commission (FCC) adopts new rules requiring phone carriers to block suspected scam texts at the network level.
Bank & Brokerage Security Measures – Financial institutions are improving fraud detection, offering multi-factor authentication, and warning customers about common scams.
Carrier-Level Spam Filtering – Companies like AT&T and T-Mobile have started rolling out enhanced spam filtering for text messages.
However, scammers are always evolving, so individual awareness is still the best defense.
How to Protect Yourself from Smishing Scams
Don’t Click Links in Unsolicited Texts – Legitimate financial institutions will never ask you to verify sensitive info through a random text message. Verify with Your Bank or Investment Firm – If you get a suspicious message, contact your bank or brokerage directly using their official website or phone number. Enable Multi-Factor Authentication (MFA) – Even if scammers steal your password, MFA can help prevent unauthorized logins. Report Scam Texts – Forward them to 7726 (SPAM) to alert your phone carrier, and report fraud to the FTC at reportfraud.ftc.gov. Stay Updated on New Scams – Follow alerts from financial institutions, the FTC, and cybersecurity experts to stay ahead of fraud trends.
Stay Informed and Vigilant
Text message scams are more convincing—and dangerous—than ever. With AI making fraud more sophisticated and regulations still catching up, it’s critical to stay informed and skeptical of unexpected messages. The next time you receive a text about a “locked account,” take a deep breath, don’t click, and verify directly with your financial provider.
Your financial future depends on more than just saving and investing—it also relies on protecting what you’ve worked so hard to build. Here’s how to stay one step ahead of hackers.
