Artificially Inflated SMS Traffic Fraud: A Growing Threat to the SMS Ecosystem
Artificially inflated SMS traffic (AIT) fraud is a type of fraud in which cybercriminals generate large volumes of fake SMS messages through apps or websites. This traffic is used to inflate the cost of legitimate messages in SMS messaging, which leads to significant financial losses for businesses.
AIT is a real and growing threat to the A2P ecosystem. In 2022, the global cost of SMS fraud was estimated at $10 billion, and this figure is expected to grow in the coming years.
How does the artificially inflated SMS traffic fraud work?
The scheme for fraud with AIT is quite trivial and works as follows:
- A scammer creates a bot that generates fake phone numbers.
- The bot then uses these fake numbers to request one-time passcodes (OTPs) or other SMS messages.
- The cybercriminal resells the created OTP or SMS to commit different types of scams, such as account hacking or data theft.
Fraudsters can also use fake traffic to inflate the cost of legitimate SMS messaging. This is done by sending fake traffic to premium numbers that charge money for each message sent.
How can a business protect itself from AIT?
There are measures that companies can take to protect against artificially inflated SMS traffic fraud, including:
- Use a trusted SMS service provider that guarantees AIT fraud detection and prevention.
- Implement strong user authentication such as OTP and 2FA to protect against account theft.
- Monitor SMS traffic for suspicious activity or spikes.
- Report any suspicious activity to your SMS service provider.
In addition, the company may use a CAPTCHA or other challenge-response mechanism to verify the authenticity of the numbers before sending the OTP. Be careful: send one-time passwords only to previously verified phone numbers.
Monitor SMS messaging for spikes in traffic from new or unusual phone numbers.
AIT is an increasing threat to the SMS ecosystem. Businesses can protect themselves from this type of fraud by taking proactive security measures and working with a reputable SMS service provider.
Decision Telecom offers its services as a telecommunications provider. We are trusted by more than 5,000 companies around the world. We provide popular SMS A2P solutions for businesses and enterprises at an affordable price.
Do you want to improve existing communication channels with your audience or introduce new methods of communication? IT specialists from Decision Telecom will help your business solve any problem.