As brands increasingly adopt SMS communication to connect with customers, cybercriminals constantly develop new methods to exploit vulnerabilities in and around this channel. To combat this problem, Infobip, a cloud communications platform, has introduced “Signals” — a solution designed to counteract the threats posed by SMS pumping.
“Infobip Signals” employs machine learning to automatically detect and block fraudulent SMS traffic without any interventions from the business. This tool is for brands that want to protect their financial resources and maintain a genuine user base by preventing fake accounts that can harm their value.
SMS pumping, or artificially inflated traffic (AIT), is a form of fraud where attackers generate a substantial volume of fake SMS traffic through a business’s app or website to obtain one-time PINs (OTPs) or app download links via SMS.
In SMS pumping, fraudsters deploy automated bots to create fraudulent accounts and systematically input phone numbers into online forms linked to SMS systems. This triggers the delivery of OTP SMS messages, resulting in increased business expenses, particularly when these fraudulent OTP requests are directed to high-cost SMS destinations.
Typically, businesses only become aware of this type of fraud when investigating discrepancies between their SMS billing and the expected returns from SMS traffic. Unusual OTP requests originating from regions or countries where a business does not usually receive traffic can serve as a red flag indicating potential SMS pumping fraud.
Research has shown that SMS traffic fraud cost businesses KES 1.4 trillion (USD 10 billion) globally in 2021. The Kenya Economic Survey 2023 revealed a 20% increase in domestic SMS traffic, surging to 51.3 billion in 2022 from 42.8 billion the previous year. During the same period, international SMS messages were sent to Kenya nearly twofold, reaching 34.8 million, compared to 19.8 million sent from the country.
Cybersecurity advisories issued by various businesses in Kenya increased from 8 million in 2021 to 13.7 million in 2022. This increase can be attributed to cyber threats’ sophisticated and dynamic nature.
In its bi-annual consumer report, the Uganda Communication Commission (UCC) revealed that the country’s telecommunication operators received 205,511 customer complaints, including those related to SMS pumping fraud. The report also indicates an increase in cybersecurity advisories issued by various businesses in Uganda in 2022.
“In an ecosystem where every active user counts, and brand integrity is a priority, Infobip Signals is our answer to ensuring businesses can thrive without the burden of SMS fraud. This is not just about financial security; it’s about upholding the genuine value of every brand,” said Adrian Benic, Chief Product Officer at Infobip.
Infobip Signals is available for global adoption now.
