Protecting your business from SMS fraud.
How SMS fraud works and how we stop it
From smishing and sender ID spoofing to revenue-share fraud and artificially inflated traffic, SMS fraud is a growing threat. Faretext actively monitors, detects, and prevents fraudulent activity across our network to keep your business and customers safe.
What is SMS Fraud
Understanding SMS fraud and its impact on business.
SMS fraud encompasses a range of techniques used by criminals to exploit text messaging for financial gain or data theft. As SMS remains one of the most trusted communication channels, it has become an increasingly attractive target for fraudsters. Here are the most common forms of SMS fraud your business should be aware of.
Smishing (SMS Phishing)
Smishing is the most common form of SMS fraud. Attackers send deceptive text messages designed to trick recipients into revealing personal information, clicking malicious links, or downloading harmful software. These messages often impersonate trusted brands, banks, or government agencies.
SMS Spoofing
SMS spoofing involves altering the sender ID on a text message to make it appear as though it came from a legitimate source. Fraudsters use this technique to impersonate businesses, send fake alerts, or trick recipients into responding with sensitive information.
Premium Rate SMS Fraud
Premium rate fraud occurs when criminals trick users into sending texts to premium-rate numbers, or use malware to automatically send messages from a victim's device. Each message incurs a charge that goes directly to the fraudster, often without the user's knowledge.
Revenue Share Fraud (AIT)
Revenue share fraud, also known as artificially inflated traffic (AIT), occurs when fraudsters generate high volumes of SMS messages to numbers where they receive a share of the termination fees. This can result in significant unexpected costs for businesses, often going undetected until billing reveals the damage.
Industries Affected
SMS fraud doesn't discriminate.
Every industry that uses SMS for customer communication is a potential target. These are some of the sectors most frequently impacted by SMS fraud.
Financial Services
Banks and financial institutions are prime targets for smishing attacks. Fraudsters impersonate banks to steal login credentials, authorise fraudulent transactions, and intercept two-factor authentication codes.
E-commerce
Online retailers face SMS spoofing attacks where fraudsters send fake order confirmations, delivery notifications, or payment requests to steal customer data and card details.
Healthcare
Healthcare providers are targeted through fake appointment confirmations and prescription notifications. Patient data is highly valuable on the black market, making health-related smishing particularly dangerous.
Government
Government agencies face impersonation attacks where fraudsters send fake tax refund notifications, benefit updates, or official notices to harvest personal information from citizens.
Retail & Marketing
Retail brands using SMS marketing are vulnerable to sender ID spoofing, where criminals send fraudulent promotional messages or fake competition wins under a trusted brand name.
Subscriptions & SaaS
Subscription services are targeted through fake renewal notices and payment failure alerts designed to trick customers into entering card details on fraudulent payment pages.
The Implications
The real cost of SMS fraud.
SMS fraud doesn't just affect your customers, it can have lasting consequences for your business. Understanding these risks is the first step toward protecting yourself.
Customer trust could be lost
When customers receive fraudulent messages that appear to come from your brand, their trust in your communications erodes. Rebuilding that confidence takes time and resources.
Your business reputation is at stake
Being associated with SMS fraud, even as a victim, can damage your brand reputation. Negative press coverage and social media backlash can have long-lasting effects.
The security of your SMS campaigns
Compromised sender IDs and spoofed messages can undermine the integrity of your legitimate SMS campaigns, reducing open rates and engagement as customers become wary of texts.
Financial and data security risks
Beyond direct financial losses from fraud, businesses face potential GDPR fines, legal costs, and the expense of remediation, not to mention the cost of lost customers and damaged relationships. Revenue share fraud can be particularly costly, with inflated traffic charges often going unnoticed until the next billing cycle.
How We Protect You
How Faretext combat SMS fraud.
Faretext takes fraud prevention seriously. SMS, if used correctly, can be one of the most cost-effective and best ways of marketing or adding value to your business. Our advanced monitoring systems and dedicated security measures work around the clock to ensure your messages are delivered safely and your account is protected from misuse.
Robust security
Security
All messages are routed through our own in-house SMSC infrastructure with direct Tier 1 carrier connections. No third-party relay.
Every outbound message is authenticated against registered sender IDs to prevent spoofing and impersonation.
Automated content scanning blocks phishing URLs, scam patterns, and misleading messages before they reach the network.
Advanced fraud detection
Detection
Automated systems continuously monitor for unusual traffic patterns, message velocity spikes, and abnormal sending behaviour.
Proactive detection of artificially inflated traffic and revenue-share number fraud that can cost businesses thousands.
Real-time alerts flag any anomalous account activity, allowing rapid investigation before damage occurs.
Accounts exhibiting fraudulent behaviour are automatically suspended to protect both the platform and other customers.
Data protection & compliance
Compliance
All data processing meets UK GDPR and Data Protection Act 2018 requirements. ICO registered (ZA054854).
All data at rest and in transit is encrypted. API connections secured via TLS with no plaintext fallback.
API credentials are issued securely and passwords are never disclosed after initial setup. No shared secrets.
Zero tolerance anti-spam policy
Faretext has a zero-tolerance approach to spam messaging. All users of our platform must comply with our anti-spam policy:
Not tolerated
No messages may be sent without the recipient's prior consent. Purchased lists are not permitted.
No false, invalid, or misleading information in any SMS content. This includes deceptive sender IDs and impersonation.
Marketing campaigns must clearly identify the sender and include a working opt-out mechanism in every message.
Any breach of this policy triggers immediate suspension of all associated SMS services with no prior warning.
Read our full anti-spam policy. To report suspected spam, email spam@faretext.co.uk.
Best Practices
Protect your business from SMS fraud.
While no system is completely immune to fraud, following these best practices will significantly reduce your risk and help you respond quickly if an incident occurs.
Choose a trusted provider
Work with an SMS provider like Faretext that actively monitors for fraud, uses secure SMSC infrastructure, and has a proven track record of protecting businesses.
Monitor your campaigns
Regularly review your SMS campaign analytics and watch for abnormal activity. Unusual spikes in traffic can indicate AIT or revenue-share fraud, while unexpected opt-outs or messages to unrecognised numbers may signal spoofing.
Verify sender IDs
Ensure your sender IDs are properly authenticated and registered. This makes it harder for fraudsters to spoof your brand and helps recipients trust your messages.
Educate your customers
Help your customers recognise legitimate messages from your business. Let them know what to expect and how to spot fraudulent SMS that may impersonate your brand.
Need help protecting your SMS?
Our team can review your setup, recommend security measures, and help you implement best practices across your SMS campaigns.
UK-based support. 01142 945 993. hello@faretext.co.uk
Why Choose Faretext
Secure, compliant SMS you can trust.
With Faretext, security isn't an add-on. It's built into everything we do. From secure SMSC infrastructure and sender ID verification to 24/7 monitoring and GDPR compliance, your SMS campaigns are actively protected. Explore our services to see how we can help your business communicate with confidence.
SMS Marketing
Reach your audience with targeted bulk SMS campaigns. Sender ID verification and content filtering keep your brand protected.
SMS Reminders
Reduce no-shows and missed appointments with automated SMS reminders. Secure, timely, and fully compliant.
SMS Surveys
Collect customer feedback instantly via two-way SMS. Automated keyword responses and real-time reporting built in.
Coming Soon
SMS Command Centre.
Take control of your compliance
Managing opt-ins, opt-outs, and sender IDs shouldn't be an afterthought. The SMS Command Centre puts compliance controls at your fingertips, helping you maintain a clean, compliant account and protect your sender reputation.
Handle STOP responses automatically and manage suppression lists from one place. Upload opt-out lists, track unsubscribes in real time, and ensure no message reaches a contact who has withdrawn consent.
Register, verify, and manage your sender IDs from a single dashboard. Keep your brand identity consistent across every campaign and reduce the risk of spoofing by maintaining full visibility over who sends on your behalf.
Monitor your account health at a glance. Track consent records, review message activity, and stay ahead of regulatory requirements. One dashboard to keep your SMS operations clean, compliant, and audit-ready.
Useful Links
Fraud prevention resources.
These regulatory and industry bodies provide guidance, reporting tools, and resources to help businesses and individuals protect themselves from SMS fraud and cybercrime.
Report Fraud
UK's national service for reporting fraud and cybercrime, replacing Action Fraud.
Take Five
National campaign helping people and businesses protect themselves from fraud.
ICO
The UK's independent authority for data protection and information rights.
Ofcom
UK communications regulator overseeing telecoms, including SMS fraud prevention.
FAQS
SMS Fraud Prevention FAQs.
Related insights
Smishing: The Rise of SMS Fraud and How to Protect Your Brand
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Artificially Inflated Traffic: The $1.16 Billion SMS Fraud You Haven't Heard Of
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Ofcom Tackles SMS Scams: What New Regulations Mean for UK Businesses
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3 min readProtect your business from SMS fraud
Secure, compliant, and actively monitored SMS messaging.
UK-based support. 01142 945 993. hello@faretext.co.uk