Phishing & Smishing: Fake Emails and Texts Explained
What is this scam?
Phishing and smishing are two common types of fraud that target unsuspecting victims, often including older adults who may be less familiar with online security measures. Phishing occurs through email or instant messaging, where scammers impersonate legitimate companies or individuals to steal sensitive information such as passwords and financial details. Smishing, on the other hand, uses text messages for similar fraudulent activities. According to the Federal Trade Commission (FTC), phishing and related scams cost Americans over $140 million in 2022 alone. The Better Business Bureau (BBB) reports that older adults are particularly vulnerable due to a lack of digital literacy and reliance on technology for communication.
How the scam works
Real examples
Jane received an email from her bank stating there was unusual activity on her account. The message asked her to click a link and verify her identity by entering her full banking details.
Bob got a text saying he needed to update his PayPal password immediately to avoid suspension. He clicked the link, only to find out later that all his money had been drained.
Red flags to watch for
- Urgent or threatening language in messages
- Requests for personal information via email or text
- Unfamiliar phone numbers or email addresses
- Spelling and grammar errors in official-looking communications
- Links to unfamiliar websites
Victim recovery plan
- 🚨 Change passwords for all accounts that may have been compromised or accessed through phishing emails, especially financial and email accounts.
- 🚨 Enable two-factor authentication (2FA) on all your online accounts to add an extra layer of security.
- 🚨 Run a full system scan using reputable antivirus software to check if your device has been infected by malware from the phishing link.
- 🚨 Disconnect any devices that were connected to the compromised network and perform a factory reset, then reinstall necessary applications.
- 📝 Report to FTC at reportfraud.ftc.gov for comprehensive documentation and assistance in tracking fraud.
- 📝 File with FBI IC3 at ic3.gov to provide detailed information about the phishing or smishing scam.
- 📝 Contact local police for a report number, which can be useful if financial losses are involved.
- 📝 File with your state Attorney General to ensure that state-level resources are aware of and can assist in addressing the scam.
- 💳 Contact banks or credit card companies immediately to freeze any unauthorized transactions made through phishing.
- 💳 Freeze credit at all 3 bureaus (Equifax: equifax.com/personal/credit-report-services, Experian: experian.com/freeze, TransUnion: transunion.com/credit-freeze) to prevent new account fraud.
- 💳 If gift cards were used, contact the issuing company immediately to report the fraudulent transactions.
- 🔒 Notify major credit bureaus and request a fraud alert if any personal information (like SSN) was compromised.
- 🔒 If you suspect identity theft, consider setting up a fraud alert or a credit freeze to prevent new accounts from being opened in your name.
- 💛 Remember that these scammers are professionals who manipulate thousands of people; you were not at fault for falling victim.
- 💛 Talk to someone you trust about what happened. Sharing your experience can help you process and move forward.
- 💛 Contact the AARP Fraud Watch helpline at 877-908-3360 for free support from trained volunteers who understand scams.
- 📋 Monitor credit reports weekly at annualcreditreport.com to catch any new fraudulent activity early.
- 📋 Watch for follow-up scams targeting previous victims, often asking for more information or money under false pretenses.
- 📋 Regularly review bank statements and account activities online for signs of unauthorized transactions.
How scammers find you
- Emails that mimic legitimate financial institutions
- Text messages posing as customer support services
- Social media platforms where scammers can send direct messages
Related scams
Get weekly scam alerts
We break down one scam every week — what they say, how to spot it, and what to tell your family.