06 Dec 2011

SMS spam and targeted financial fraud increasing in the US

As technology moves forward, so do those looking to take advantage of the technology, according to research by Cloudmark. The company said mobile security software could be used to protect users from SMS fraud and scams.

The company said prominent examples of fraud include gift card scams, bank fraud attacks and credit card attacks. Cloudmark said scammers' business model on loans and gift cards is based on referrals for loans through web redirects that go to an affiliate program by accepting applications that are forwarded to that affiliate program.

“There is a substantial difference in the profile of attacks on mobile versus email. With the global email we analyze, most of the attacks are spam, but financial fraud remains a very small percentage of email - not more than 10 percent overall," Hugh McCartney, Cloudmark CEO. "Conversely, our mobile data research reveals that more than half of SMS spam is composed of targeted attacks focused on extracting financial account information or enticing the subscriber to call premium rate numbers, usually with immediate financial impact to the mobile user.”

Michael Davis of InformationWeek said users should assess their mobile security risk and be aware of risks that can come their way through the phone. Many think phones are completely safe, but there are measures of internet security that need to be taken with these devices as sensitive information is accessed by users.