You’ve likely heard of phishing–you know, the scams where someone sends you a fake email to trick you into giving up your password or banking information. Most of us have heard about phishing so often that we’re tempted to tune it out and think, “Ha, I would never fall for one of those scams.”
But the truth is that phishing is a bigger threat than ever, even to local small businesses in Lancaster, Harrisburg, and York, PA. Phishing attacks are becoming more common and more sophisticated all the time. Your business and your employees—even those with cybersecurity training—may still be at risk.
Phishing is dangerous because these deceptive attacks can lead to the loss of sensitive information, identity theft, and significant financial damage. But you don’t have to feel vulnerable and overwhelmed anymore.
With cybersecurity services, you can mitigate your phishing risks by securing your network, managing cyber threats, and educating your team. Protect your business from the ever-evolving dangers of phishing scams. Schedule a phishing consultation today to safeguard your business and gain peace of mind.
What Is Phishing?
Phishing is a type of cyber-attack where criminals attempt to deceive individuals into revealing sensitive information such as account numbers, login credentials, or credit card details. These attacks typically involve fraudulent emails, text messages, or websites designed to look legitimate. The attackers often employ social engineering tactics to trick recipients into clicking on a link or downloading an attachment, leading to compromised personal information or the installation of malicious software.
Recognizing phishing attempts can be challenging as they are becoming increasingly sophisticated, mimicking actual companies and institutions. Understanding what phishing is and how it operates is the first step in protecting your business from these dangerous scams.
Why Phishing Is Dangerous
Phishing is dangerous because it preys on human error and bypasses even the most robust technical defenses. Cybercriminals can gain access to sensitive data like account information, email addresses, and personal material, leading to identity theft and financial loss.
Phishing scams can also result in unauthorized access to your business’s network, allowing attackers to steal data, install ransomware, or disrupt operations. The deceptive nature of phishing emails makes them difficult to recognize, often appearing as legitimate communications from trusted sources.
Additionally, the financial and reputational damage can be severe, particularly for small businesses lacking the resources to recover quickly. Given these risks, understanding why phishing is dangerous and taking proactive measures to protect your business is essential.
1. Phishing attacks have increased exponentially
The first recorded mentions of phishing attacks occurred back in 1996 in the days of America Online. Over the next decade, internet and email access exploded in popularity, and cybercriminals suddenly had millions of unsuspecting victims. When smartphones hit the market in 2007, phishing attacks became even more commonplace and have only grown in frequency since.
To give you an idea, 71% of U.S. organizations experienced a successful phishing attack in 2023. Year over year, there has been a 144% increase in financial penalties (i.e., regulatory fines) and a 50% increase in reports of reputational damage due to phishing. According to the FBI, phishing is the most common type of cybercrime. In 2023, they saw nearly 200,000 more phishing attacks than in 2019.
COVID-19 phishing scams likely helped accelerate the increase in 2020. The pandemic introduced new opportunities for scammers, and some estimate that drove up cybercrime by 600%!
The global shift towards remote work has also made businesses more vulnerable, as employees may be more likely to fall for phishing emails outside the controlled office environment. Additionally, the sheer volume of digital communication makes it easier for malicious emails to slip through. With phishing attempts becoming more frequent and more challenging to detect, the risk to businesses is more significant than ever.
With modern technology, these attacks can also come in a variety of forms and channels. We’re probably most familiar with email phishing attempts–things like fake links or malicious files hidden in attached documents. Now, with smartphones, we have smishing, which is phishing via SMS text messages on your smartphone.
And let’s not forget about vishing or voice phishing over the phone. Ever get one of those calls from “Sharon, your local Google specialist?” Hint: Sharon does NOT work for Google. It’s just a scam.
Phishing has grown more sophisticated
Phishing has evolved significantly, becoming more sophisticated and more challenging to detect. Modern phishing emails often imitate legitimate communications from trusted entities like banks, online services, or even colleagues. Attackers use advanced social engineering techniques to craft convincing messages, sometimes even including personal information to make the email appear authentic.
By now, most of us know not to trust Nigerian princes claiming to offer us millions of dollars. But the combination of technology and social engineering has spawned phishing attacks that are more sophisticated–and scarier–than ever.
Some phishing scams now employ tactics such as fake login pages that look identical to real ones, tricking users into entering their account information. Phishing can also involve multiple stages, starting with an innocuous-looking email and escalating to more targeted attacks. This level of sophistication means that even tech-savvy individuals can fall victim, underscoring why phishing is dangerous.
What Is Social Engineering?
In cybersecurity, social engineering refers to a broad range of scams in which criminals deceive or manipulate victims into taking actions or giving up confidential information. It’s an alternative to “traditional” hacking, which requires technical expertise to infiltrate computer systems.
Social engineering isn’t new. Think of classic con men like Charles Ponzi or Frank Abagnale (like in Catch Me If You Can), who fast-talked and manipulated people to get ahead.
Today, the difference is that the internet makes an enormous amount of information available that someone can use to manipulate you. Social media is especially risky because it makes it easier than ever for criminals to find out personal details about you.
Common social engineering techniques include impersonating trusted entities, creating a sense of urgency, or appealing to emotions like fear or curiosity. For example, an attacker might send an email posing as a bank representative, urging the recipient to “log in to your account” to resolve an urgent issue. Once the victim clicks on a link and enters their account information, the attacker gains access.
Here’s an example that our IT team handled that was directed toward one of our clients. The terrifying part is that the x’ed-out password was a real password that the victim had used, which was stolen from a hacked website.
Many phishing attacks also manipulate victims by impersonating a trusted person or company. For example, around tax season, scam messages from criminals claiming to be the IRS are common because they know people are waiting for refunds and are more likely to fall for a fake bank transaction. In 2017, there was an incredibly sneaky Google Docs phishing scam that sent messages from individuals’ real contacts and exploited an actual Google page.
What Is CEO/Manager Fraud Phishing?
CEO or Manager Fraud Phishing, also known as Business Email Compromise (BEC), is a targeted phishing attack where cybercriminals impersonate a company’s CEO, manager, or other high-ranking officials. Using information that is publicly available online, criminals can find out details about the CEO or managers of a company. They use that information to craft targeted phishing messages to trick employees into making financial transfers or compromising company data.
Criminals know that they can take advantage of employees’ natural desire to help a customer or please their boss. And it works. In 2023, the FBI reported more than 21,000 CEO scams, resulting in a whopping $2.9 billion loss.
Human Error Is Still a Significant Problem
No matter how technically secure your computer systems are, you can’t always protect against people. Employees may inadvertently click on a malicious link, download a harmful attachment, or respond to a fraudulent email, leading to compromised sensitive information and security breaches. The deceptive nature of phishing scams preys on the natural tendencies of individuals to trust and respond quickly, often under perceived pressure or urgency.
Unfortunately, your employees are still a considerable risk factor for your business, even if they don’t mean to be. According to IBM, human error is a contributing cause in 95% of data breaches.
Criminals know this and will continue to exploit unaware employees using phishing attacks and social engineering scams. The same IBM report revealed that data breaches caused by human error cost $128 per record to resolve. How many customer records do you have in your company database or email list? Paying $128 for each one can add up quickly.
How Do You Recognize a Phishing Scam?
Recognizing a phishing scam is essential for protecting your business from cyber threats. Phishing emails often contain subtle red flags that, when identified, can prevent a security breach. Look for inconsistencies such as generic greetings like “Dear User” instead of your name, grammatical errors, and spelling mistakes.
Be wary of emails that create a sense of urgency or pressure you to act quickly, such as threatening account suspension or urgent payment requests. Check the sender’s email address for slight misspellings or unusual domains. Hover over links to see the URL before clicking. If it looks suspicious or doesn’t match the supposed sender’s domain, don’t click.
Additionally, legitimate organizations rarely ask for sensitive information like passwords or credit card numbers via email. When in doubt, contact the organization directly using a known, trusted method to verify the email’s legitimacy. Staying vigilant and educating your team about why phishing is dangerous can significantly reduce the risk of falling for phishing scams.
What Should You Do if You Receive a Phishing Email?
If you receive a phishing email, here’s the HEROIC thing to do:
- Hold On: The first step is to hold on, or pause, before interacting with it. Do not click on any links, download attachments, or reply to emails.
- Examine It: Instead, scrutinize the email for signs of phishing, such as suspicious sender addresses and urgent requests for sensitive information.
- Report It: If you identify the email as a phishing attempt, report it immediately to your IT department or email provider. Many email services have built-in features for reporting phishing.
- Obliterate It: After reporting, delete the email from your inbox and ensure it is also removed from your trash or deleted items folder.
- Inform Others: It’s also wise to inform your colleagues to be on the lookout for similar emails.
- Change Passwords: If you have already clicked on a link or provided information, change your passwords immediately and monitor your accounts for any suspicious activity.
Taking these steps can help mitigate the risks and prevent further damage from phishing attacks and will surely make you the hero of your company.
How to Protect Yourself and Your Business from Phishing
Protecting yourself and your business from phishing requires a multifaceted approach. Here are some tips we recommend:
Educate your employees
An education employee who knows why phishing is dangerous is your best defense against phishing attacks. Even if you have the best spam email detection in the world, clever phishing emails can still get through. Plus, an unaware employee can still endanger your business if they fall victim to a phone scam or use an infected personal account or device at work.
Invest the time and resources to educate and train your employees, not only to spot phishing emails but to have safer computing habits in general. That way, they can recognize and respond appropriately to threats and scams, keeping your business secure in the process.
Foster a healthy sense of caution
We get it—some of us are just glass-half-full people who naturally want to trust others. You don’t need to be a hopeless skeptic, but it’s vital to practice caution when it comes to IT security.
First, that means being aware of when and how you’re sharing sensitive personal or business information. For example, with the number of online accounts nowadays, you may not hesitate to give out your email address. However, recognize that something as simple as an email address is valuable and can be misused in the wrong hands.
Second, never give out information unless you’re sure who is asking for it—and what they need it for. If you get an unexpected email from a company like Microsoft or Amazon asking for your login credentials or credit card information, think twice. Large, reputable companies already have your data and credentials on file, so they would never be asking for it. A closer look may reveal that the message is from a scammer posing as a trusted company.
Finally, when in doubt, ASK. If you receive a message, whether by email, phone, text message, or otherwise, and you’re not 100% sure it’s legitimate, always double-check before giving out any information. It’s worth the extra step to keep yourself and your business safe.
Conduct Simulated Phishing Tests
When it comes to phishing, experience is one of the best teachers. But you don’t want to be a victim of an actual phishing attack to know what one looks like. That’s where simulated phishing training is valuable.
Yes, you can phish your employees (without actually stealing their information, of course) with the help of cybersecurity services like our Password Watchdog stolen password and training service. While it might seem mean, simulated phishing tests are a highly effective way to give your employees practical experience in identifying and responding to phishing scams.
When implemented fairly and transparently, simulated phishing has proven to be a positive training experience for many businesses and helps emphasize why phishing is dangerous.
Given that the average data breach costs a small business $200,000 (or more, depending on which study you read), simulated phishing tests can be a valuable investment that saves your business money in the long run. In fact, the Ponemon Institute reported that security awareness training that includes simulated phishing provides up to a 37% return on investment for businesses.
Have a Security Policy in Place
Lastly, make sure your business has an IT security policy in place. Establish guidelines for how employees should use technology in and around the workplace. Some significant questions to consider include:
- What are acceptable uses for company computers?
- Are there any software applications or websites that are off-limits?
- Do you allow employees to bring their own personal devices?
- What cybersecurity steps are in place for employees working from home?
- Do you have multi-factor authentication in place?
Think about who has access to what types of information. You don’t want everyone in the company to have access to financial data or employee records.
Restrict access to sensitive data to the employees who genuinely need it. That helps control and protect information from getting inadvertently released or stolen.
Finally, guidelines on what to do in the event of an emergency should be included. Suppose your business falls victim to a cyberattack. In that case, you want your employees to be prepared and know how to respond to fix the problem and minimize any damage before a threat actor gains access to your organization.
Now that You Know What’s Dangerous About Phishing, Do Something About It
Ensuring your business is prepared to defend against phishing attacks is crucial in today’s digital landscape. Start by assessing your current cybersecurity measures.
Do you understand why phishing is dangerous? Do you have up-to-date antivirus software, email filtering, and firewalls in place? Are your employees trained to recognize and report phishing attempts? Additionally, evaluate the effectiveness of your password policies and consider implementing multi-factor authentication (MFA) for an added layer of security.
Regular security audits and vulnerability assessments can help identify potential weaknesses in your system. Working with a trusted cybersecurity provider can offer comprehensive protection, from network security to employee training. By taking a proactive approach, you not only safeguard sensitive information but also build a resilient defense against evolving phishing tactics.
If you’re uncertain about your business’s readiness or what’s dangerous about phishing and social engineering, it’s time to act. Schedule a phishing consultation to ensure your defenses are robust and up-to-date, providing peace of mind in an increasingly complex cyber environment.
Resources:
- https://www.phishing.org/history-of-phishing
- https://www.proofpoint.com/sites/default/files/threat-reports/pfpt-us-tr-state-of-the-phish-2024.pdf
- https://purplesec.us/resources/cyber-security-statistics/
Editor’s Note: This blog post was originally published on 4/13/2021. It has since been revamped and updated for accuracy and comprehensiveness.