SMS Marketing: Advantages, Risks, and Secure Alternatives

SMS marketing remains a popular channel due to its high open rates (over 90%), but it faces significant challenges in terms of privacy and security. The lack of end-to-end encryption exposes both brands and consumers to risks such as phishing, spoofing, spam, and hacking. In this article, we explore the most common security issues with SMS, their impact on businesses, and how alternatives like encrypted push notifications can offer a more secure solution.

While SMS marketing boasts high open rates, there’s one drawback for brands and consumers alike: Text messages are not private or secure because the channel doesn’t support end-to-end encryption. That means the SMS messages mobile users send and receive are vulnerable to being read by anyone, including criminals. SMS is also susceptible to a range of fraudulent activity, including spam, phishing, spoofing, and hacking. 

SMS security issues you need to know about 

The Mobile Ecosystem Forum (MEF), a global organization dedicated to addressing issues that affect the mobile ecosystem, developed their Business SMS Fraud Framework in 2016 with a goal of identifying and documenting the most common types of SMS fraud that occur. In their 2021 report, the MEF highlighted 14 SMS security issues that impact consumers and businesses. These include SMS spoofing, SMS phishing, hacking, and spam. Other leading experts also call out additional SMS security issues, including SMS flooding and SMS interceptions, marketers need to be aware of. Let’s briefly review each and how they impact customer interactions.

• SMS spoofing: Happens when an attacker hides their true identity and sends a message impersonating a legitimate company or person the consumer knows with a goal of obtaining sensitive personal information to attempt to market to or steal from the user

• SMS spam: This is an unsolicited text message that is sent to a consumer without their explicit opt in or consent, usually with a goal of sending marketing messages to drive business

• SMS phishing (AKA smishing): Occurs when bad actors use spam, spoofing, and social engineering methods to impersonate known entities to send messages soliciting consumers for their online accounts or payment details 

• SMS hacking: Happens when criminals gain unauthorized access to a consumers’ mobile network operator system to capture their payment details or passwords for financial gain

• SMS flooding: This is a method attackers use to inundate users with a series of messages that could contain malicious content 

• SMS interceptions: Happen when malicious attackers manage to exploit mobile carriers’ network vulnerabilities to intercept SMS messages as they travel between the network and a mobile device, enabling these bad actors to read the contents of any text messages they capture, such as authentication codes or sensitive consumer details (such as payment information), and even alter the message contents

What SMS security issues can do to your brand

According to the MEF, the prevalence of fraud within SMS marketing has negative consequences for businesses, including potential:

• Damage to brand reputation as a result of being associated with fraudulent messages (if applicable)
• Liability as a result of SMS messages that get delayed or lost due to attackers
• Disengagement with SMS message marketing, either as a result of consumer trust in SMS or due to consumers perceiving SMS messages as intrusive, annoying, or spam

The more secure alternative to SMS marketing — encrypted push notifications

Marketing automation platforms like indigitall offer encrypted push notification capabilities so brands and consumers can safely communicate about sensitive, private, confidential, and financial matters.

Key Benefits

• End-to-end encryption: Protects messages from interception and unauthorized access.

• Verified authentication: Ensures that messages come from a legitimate source.

• Regulatory compliance: Certifications like SOC 2 Type II and ISO 27001 guarantee high security standards.

• Improved engagement: Increases user trust, boosting key metrics like NPS by up to 30%.

Use Cases

Push notifications are ideal for industries such as:

• Financial services: Secure delivery of sensitive information.

• E-commerce: Order confirmations and personalized promotions.

• Customer service: Fast and secure resolution of inquiries.

Advanced Strategies to Protect Your Business

To mitigate the risks associated with SMS marketing and improve overall security:

• Implement advanced encryption: Make sure all communications are protected with TLS encryption or RCS (Rich Communication Services), a secure evolution of SMS.

• Use multi-factor authentication (2FA): Replace SMS-based authentication with dedicated apps or time-based one-time passwords (TOTPs).

• Adopt smart tools: Platforms like Fyno.io provide real-time analytics, automatic fraud detection, and centralized communication management.

• Audit your processes regularly: Stay updated on local and international regulations to ensure legal compliance.

Conclusion

SMS marketing is effective but faces critical challenges in terms of security and privacy. Companies must take proactive steps to protect their communications and consider more secure alternatives like encrypted push notifications. These solutions not only enhance security but also improve the customer experience, strengthening the relationship between brands and consumers.

If you want to learn more about how to protect your communications, download our ebook on Encrypted Push Messaging.

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Learn more about indigitall’s encrypted push notifications and download our Encrypted Push ebook to learn more about the benefits of this secure messaging channel.