TL;DR: SMS remains a powerful channel for business communication – but it’s also increasingly vulnerable to fraud. In 2024 alone, consumers lost $470 million to text scams, making SMS fraud a serious risk to both revenue and reputation. This guide explores what SMS fraud looks like, why businesses must take action, and how 8×8 Omni Shield offers proactive, AI-driven protection.
Why SMS Fraud Is Surging in 2025
SMS remains one of the most trusted and effective communication channels for businesses, whether it’s used for marketing, customer service, or two-factor authentication. However, its popularity has made it a prime target for fraudsters. According to the U.S. Federal Trade Commission (FTC), SMS scams cost consumers $470 million in 2024, more than five times higher than the amount reported in 2020.
As the tactics behind SMS fraud become more advanced, companies must move beyond traditional safeguards. It’s time to talk about SMS fraud protection – what it is, why it matters, and how advanced solutions like 8×8 Omni Shield are helping businesses fight back.
4 Common SMS Fraud Tactics Businesses Must Know
SMS fraud is escalating at an alarming rate, with businesses facing not just end-user scams but large-scale exploitation of entire messaging ecosystems. In 2023 alone, SMS-related fraud caused global losses of $5.8 billion, while Artificially Inflated Traffic (AIT) scams cost brands an estimated $1.15 billion through the generation of up to 35.7 billion fraudulent messages.
Let’s break down the most common SMS fraud tactics:
- Phishing via SMS: Fraudsters mimic trusted brands to trick users into clicking malicious links or revealing sensitive information.
- Smishing: A variant of phishing, “smishing” involves sending deceptive messages that appear urgent or important – like fake delivery notifications or bank alerts.
- SIM Swapping: This attack involves transferring a user’s mobile number to a different SIM card, allowing fraudsters to intercept SMS messages, including OTPs.
- Artificially Inflated Traffic (AIT) Fraud: Often orchestrated by rogue actors within the messaging ecosystem, AIT involves generating fake traffic to inflate message volumes – resulting in increased costs for enterprises and brands without delivering real user engagement.
These tactics can be used as standalone attacks or layered together in complex fraud schemes. For companies, the cost is far more than just dollars lost – brand trust, customer loyalty, and legal compliance are all at stake.
What Is SMS Fraud Protection (and Why It Matters)?
SMS fraud protection goes far beyond stopping spam after it’s sent. The best solutions use real-time traffic analysis, machine learning, and anomaly detection to:
- Block suspicious traffic before it reaches users
- Detect fraud patterns like sudden volume spikes
- Keep delivery rates high and costs low
- Ensure compliance with GDPR, HIPAA, PCI-DSS, and more
Meet 8×8 Omni Shield: Real-Time SMS Fraud Detection for Modern Businesses
8×8 Omni Shield is your frontline defense against SMS fraud – built to stop threats before they impact your business. As messages flow through the 8×8 SMS API, Omni Shield continuously scans for anomalies in traffic patterns, like sudden spikes or unusual routing behavior. When something looks off, you’re instantly alerted.
Through the 8×8 Connect portal, you gain full visibility and control – see what’s happening in real time, take swift action against suspicious numbers, and keep your messaging safe, cost-effective, and compliant. With Omni Shield, your brand stays one step ahead of fraudsters – always.
Real-Time Monitoring and Blocking
8×8 Omni Shield prevents SMS fraud through intelligent, real-time monitoring powered by machine learning and behavioral analytics. Its Traffic Anomaly Detector continuously analyzes live SMS traffic to identify abnormal trends – such as sudden spikes in volume, shifts in operator breakdown, or deviations from typical usage patterns – alerting businesses before fraud impacts their systems.
Complementing this, Phone Number Intelligence verifies whether a number is valid and responsive before any message is sent, reducing wasted spend and exposure to risk.
Together, these tools allow businesses to profile phone numbers, assess risk scores, clean corrupted or inactive data, and maintain full visibility into delivery and conversion rates at the operator level – all while taking proactive action to block suspicious activity.
Whether it’s identifying unnatural spikes in message volume (a telltale sign of AIT fraud) or catching suspicious international routes, Omni Shield acts with speed and precision.
Benefits of Using Omni Shield for SMS Security
Choosing 8×8 Omni Shield means protecting more than just your SMS gateway. You’re investing in end-to-end communication integrity. Here’s Why Omni Shield is the ultimate choice for SMS security:
Enhanced Protection Against SMS Fraud
With real-time monitoring and intelligent blocking, Omni Shield offers robust defenses against phishing, smishing, SIM swaps, AIT, and other forms of SMS fraud.
Reduced Financial and Reputational Risk
Fraud doesn’t just cost money – it costs trust. Omni Shield helps prevent fraud-related fines, chargebacks, and brand erosion by eliminating threats before they impact your users.
Improved SMS Deliverability Rates
Fraudulent traffic can distort your delivery metrics and damage sender reputations. Omni Shield ensures that your messages get delivered to real users, not bots or fake terminals.
Lowered Messaging Costs
AIT fraud and spam inflate messaging bills. By detecting and eliminating this traffic, Omni Shield helps you optimize spend and reduce unnecessary costs.
Full Compliance with Global Security Regulations
Omni Shield aligns with compliance requirements such as GDPR, HIPAA, and PCI-DSS, supporting secure, auditable message handling across industries.
Operational Efficiency and Peace of Mind
No more guessing games or reactive firefighting. Omni Shield empowers your team with actionable insights, automatic alerts, and simplified management – so you can stay ahead of issues before they escalate. Plus, by proactively safeguarding systems and data, you build stronger customer trust and demonstrate a commitment to reliability and transparency.
Easy, No-Code Integration with 8×8 Connect
Security shouldn’t come at the cost of agility. 8×8 Omni Shield is built into the 8×8 Connect platform as a self-serve, no-code solution, allowing businesses to adopt enterprise-grade SMS fraud protection without a massive overhaul.
This means:
- Built-in visibility and control from day one
- No-code setup for fast deployment
- Fast time-to-value
Whether you’re a startup scaling fast or a global enterprise protecting millions of messages, Omni Shield is designed to grow with you.
Why Businesses Trust 8×8 for Secure Communications
Choosing 8×8 means more than fraud protection – it means accessing a global communications platform with unmatched capabilities:
- Unified messaging, voice, video, and contact center
- Scalable infrastructure to support global growth
- Local support with global reach
- Proven trust and reliability from a brand built on secure, enterprise-grade solutions
Final Takeaway: Don’t Wait for Fraud to Strike
The reality is simple – SMS fraud isn’t going away. As attackers grow more cunning, businesses must stay ahead with solutions that evolve just as quickly. 8×8 Omni Shield provides the visibility, protection, and performance needed to safeguard your most critical communication channel.
If you’re serious about protecting your customers, your brand, and your bottom line, now is the time to act.
🔒 Explore 8×8 Omni Shield now or contact Sales to get started today.
