Bank SMS Fraud: How To Identify & Prevent Smishing Scams In India

SMS (Short Message Service) is the most common way for banks to communicate with you, from providing updates on your account activity to sending alerts for payment reminders.

However, scammers have taken advantage of this digital communication. There has been a rise in bank SMS scams, which is becoming a growing concern. In fact, according to an Economic Times India report, about 3,50,000 SMS frauds occur daily.

This article on bank SMS fraud will help you understand how smishing scams work, give you ways to identify genuine bank SMS from fraud ones, and provide expert advice against such SMS scams.

What is SMS phishing?

When an individual or organization sends an SMS pretending to be from a trusted entity like a bank – it’s called SMS phishing, or smishing.  

Typically, these SMS or notifications contain links to phishing websites or request the receiver to share their sensitive bank details like passwords, date of birth, OTPs, etc. with the objective of stealing them and committing financial fraud. 

Types of bank SMS scam

Your bank sends you an SMS regularly for various banking activities or transactions, plus promotional offers. A scammer can take note of such notifications and employ various tactics to replicate them to manipulate unsuspecting customers into a sense of urgency, threat, or reward and lead them toward a fraudulent link.

Below are some common bank notification scams:

1. Fake Transaction Alerts: The message says that a large amount has been debited from your bank account and that it needs your immediate attention. Then you are prompted to click on a link to either verify or dispute the transaction. 
2. Account Suspension Notices: Such messages state that your account has been deactivated due to a serious concern, and you must take immediate action to restore access or else lose your entire bank balance.
3. Promotional Offers: These SMS include offers, rewards or cashbacks (often too good to be true) that can be redeemed by taking simple actions like clicking on a link or confirming your banking details. 
4. Verification Requests: Some smishing is as simple as asking you to verify account details as part of the bank’s regular KYC initiatives, while preying on you to click a link or respond with personal information.

Safe Banking Tips to Avoid Bank SMS Phishing

Experts in bank safety advise that safety from such scams begins from scepticism, as not all SMS that appear to be from banks are genuine. Here are some actions to take (or avoid) to ensure a safe interaction with bank SMS.

1. Verify the Sender: A legitimate bank notification/SMS tends to come from a short, recognizable number, or the bank’s official name. So, keep an eye out for the sender’s details.
2. Do Not Click on Links: Read the link and you will often see the URL vary from the official bank URL. If they are shortened, do not click them. Instead, visit your bank’s official website and cross-check the action asked for in the SMS. 
3. Do Not Share Password: A real bank or any of its employees will never ask for your password, OTP, or PIN through SMS. 
4. Use Official Apps: Always use the bank’s official mobile application. You can typically find them on trusted sources like Google Play Store or Apple App Store.
5. Report Suspicious Messages: If you notice any suspicious SMS, inform your bank immediately.  You can also report suspicious SMS on the Sanchar Sathi portal, operated by the Department of Telecommunications.

Also read: Guide On Safe Banking To Help You Secure Finances

Endnote 

Staying vigilant and informed is the key to safe banking practices. By understanding how smishing scams work and knowing how to set up secure alerts, you can protect your financial information from fraudsters. Remember, your bank is a partner in your financial security, and taking proactive steps can significantly reduce the risk of falling victim to smishing scams.

Looking to apply for an account with one of the most secure banks in India? Explore Kotak811 today.

FAQs

1. How do I know if a text from my bank is genuine?

Verify the sender, look for typos or grammatical errors, and never click on links or share personal information through SMS.

2. What information does a scammer need to access my bank account?

Scammers typically need your account number, password, or card details, along with additional security information like your PIN or OTP, to access your account.

3. Can someone steal your bank info from a check?

Yes, if someone has access to your check and its routing number, they could potentially steal your bank information. So, protect your checks.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.