Phishing attack: What is it and how does it work? A complete review

Picture this: You receive an urgent email from your bank about suspicious activity on your account. Panicked, you click the link and enter your credentials—only to realize later it was a scam. 😱  This is phishing, one of the most common and dangerous cyber threats today.

Phishing attacks continue to escalate, with over 1 in 4 organizations worldwide experiencing a phishing attack in 2024. According to the 2024 Verizon Data Breach Investigations Report, these scams are responsible for nearly 35% of all data breaches, with attackers frequently using social engineering tactics to manipulate victims into revealing sensitive information. 💻

In this guide, we’ll explore what is phishing attack, how it works, the various types of phishing, and practical steps to protect yourself. Whether you’re an individual or a business, understanding phishing is crucial for staying secure online.

 Let’s dive in!🚀

What is a Phishing Attack?

A phishing attack is a type of cyber attack where scammers pretend to be trusted sources like banks, websites, or even friends. They do this to trick people into sharing private information, such as passwords, money details, or personal facts.

Phishing often happens through fake emails, phone calls (vishing), or websites. It’s a form of social engineering where attackers use feelings like fear or urgency to make people act fast without thinking carefully.

How Does a Phishing Attack Work?

A phishing attack is a straightforward but very successful way for hackers to take important information from people. Here’s how it usually works:

1. Deceptive Email or Message

The attackers send emails or messages that look and sound like they are coming from sources with which you would trust business or interactions, such as your bank, well-known technology companies, and government agencies. These messages are designed to trick you into thinking they are legitimate.

2. Urgent Call to Action

The message creates a sense of urgency, like warning you about an account breach, a suspicious login attempt, or an unpaid bill. This feeling of urgency makes you want to act fast, sometimes without thinking carefully or checking if it’s true.

3. Malicious Link or Attachment

The message has a link or attachment that may be harmful. If you see this, please be careful. If you click the link, it takes you to a fake website designed to look like a trusted one (like your bank’s login page). 

On this fake website, you will be asked to enter sensitive data, such as your password, credit card number, or other personal details.

4. Data Harvesting

When you enter your details, the attacker steals your login, money info, or other personal details. They might use it to steal your identity, commit fraud, or sell it online.

This can cause a lot of money problems and hurt your reputation.

Different Types of Phishing Attacks With Example

Phishing attacks can happen in many ways, and each one is made to fool people in different ways. Below are the most common types of phishing attacks:

1. Email Phishing Attack

Email phishing is the most common form of phishing attack. In this situation, people trying to harm you send fake emails that look like they come from a reliable place, such as your bank or a popular online shop. 

These emails typically contain malicious links or attachments, which either lead to fake websites or install malware on your device.

Example: You receive an email that looks like it’s from Microsoft, claiming your account has an issue and asking you to click a link to “fix” the problem. The link takes you to a fake Microsoft login page, where your login credentials are stolen.

2. Spear Phishing

Unlike regular phishing, spear phishing focuses on one person or company. The attacker customizes the message by including personal details to make the email look more legitimate. This makes spear phishing more dangerous and harder to detect.

Example: A scammer pretends to be a company executive and sends a carefully written email to an employee. The email asks for sensitive financial data or other confidential information.

3. Vishing (Voice Phishing)

Voice phishing, also known as vishing, involves phone calls instead of emails. In this scam, the attacker pretends to be from a trusted organization, like your bank and tries to trick you into giving them your credit card details or personal information.

Example: You get a call that seems to be from your bank, asking for your PIN or credit card number to resolve an urgent issue with your account.

4. Smishing (SMS Phishing)

Smishing is a type of phishing that uses SMS (text messages) to steal your information. In this scam, an attacker sends you a text message containing a link or phone number that directs you to a fraudulent website or connects you with a scammer.

Example: You receive a text message claiming your bank account has been locked, followed by a link to unlock it. The link takes you to a fake website where you’re asked to enter your personal details.

5. Whaling

Whaling is a specific type of phishing that targets high-profile people, like CEOs or financial officers in a company. Attackers use personal information to create convincing messages that often involve money transactions or important business requests.

Example: A fake email appears to come from the CEO, asking the finance team to transfer a large sum of money to a specific account.

6. Angler Phishing

Angler phishing takes place on social media. Attackers set up fake customer service accounts that look real. They trick users into giving away sensitive information by pretending to help them solve a problem.

Example: A fake Twitter account pretending to be the customer support team of a major company asks you to share your credit card information to resolve a billing problem.

What are the Benefits of Phishing Attacks?

Phishing attacks are harmful, but they offer big rewards to cybercriminals. Here’s how attackers profit from these dangerous scams:

1. Financial gain

The main goal of a phishing attack is to steal important information, like credit card numbers, bank account details, or passwords. With this, attackers can make fake purchases or take money from the victim’s account. For cybercriminals, it’s a fast and easy way to get money.

2. Stealing Your Identity

Phishing can result in identity theft. Attackers may use stolen information, such as your social security number, address, or birth date, to create fake accounts, apply for loans, or take out credit in your name. This can cause serious financial damage and reputation harm.

3. Data Breaches for Companies

Phishing causes data breaches in businesses. Attackers trick employees into giving away company secrets, customer information, or financial data. This can lead to the loss of important data, which costs the company money and harms its reputation.

4. Access to Company Secrets

A type of phishing called spear phishing targets high-ranking employees, like CEOs or CFOs. These attacks are made to look very believable because they are tailored to the person. 

If an attacker is successful, they can access confidential company information, trade secrets, or financial records. This can result in corporate spying and significant losses for the business.

Phishing Case Studies

I. Corporate Case Study: The 2016 Verizon Phishing Attack

In 2016, Verizon was hit by a major phishing attack. Cybercriminals used spear phishing emails to trick senior employees. These emails looked like legitimate requests for internal information. When an employee clicked a link, they were directed to a fake site where they entered their login information.

The attackers used this stolen information to get into Verizon’s private network and access important customer data. This security problem led to big money losses and damaged the company’s image.

Lessons Learned:

• Employee training is critical for spotting phishing emails.
• Multi-factor authentication (MFA) could have prevented access, even if login details were stolen.

II. Corporate Case Study: Google and Facebook’s Phishing Scam (2013-2016)

Between 2013 and 2016, Google and Facebook fell victim to a large phishing scam. A criminal pretending to be a supplier sent fake invoices asking for payment to fraudulent accounts. Employees were tricked into wiring over $100 million to these fake accounts.

The scam was only uncovered when the attacker tried to escalate it. Both companies didn’t have enough anti-phishing protection in place to detect fraud.

Lessons Learned:

• Always verify payment requests and confirm suppliers to avoid phishing scams.
• Cybersecurity awareness is essential for all employees, especially in finance and procurement departments.

Phishing Attack Statistics & Trends 

1. Global Phishing Statistics

Phishing attacks are on the rise globally, with a significant increase in both frequency and sophistication.

In 2024, a report of SIilicon Angle shows that over 100 organizations in Europe and the U.S. fell victim to phishing attacks deploying “StrelaStealer” malware. These attacks stole email credentials by tricking employees with fake email attachments, bypassing traditional defenses. 

Sectors like finance, healthcare, and e-commerce are the most targeted due to the sensitive data they handle. Cybercriminals are exploiting human vulnerabilities, making phishing one of the leading methods for cyberattacks worldwide.

2. Phishing Trends

Phishing methods are changing quickly because of new technology. For example, phishing that uses artificial intelligence creates very personal and believable emails. Social media phishing is also becoming common, where attackers impersonate trusted accounts to deceive users. 

Furthermore, phishing attacks often use messages that create a sense of urgency or fear, like fake job offers or urgent alerts, to make people share important information.

3. Impact on Businesses

Phishing attacks can seriously hurt businesses financially and damage their reputation. A single phishing breach can cost millions in lost revenue, legal fees, and recovery work.

In addition to financial losses, companies risk losing customer trust in their security measures. For individuals, phishing can result in identity theft, drained bank accounts, and emotional stress. Businesses need to stay alert to protect their assets and their customers.

Phishing Awareness Resources

To stay safe from phishing attacks, it’s crucial to know where to turn for trusted information and help. Here are the most valuable phishing awareness resources to guide you:

I. Government Resources: Official Websites for Phishing Awareness

Government agencies play a key role in educating the public about phishing threats and offering support for those affected by online scams. Some of the most trusted resources include:

1. Federal Trade Commission (FTC)

The Federal Trade Commission (FTC)  gives helpful advice on how to spot phishing scams and explains the common tricks used by cybercriminals. They also provide tips on how to protect yourself from becoming a victim.

 You can visit their website for reports on phishing attacks, identity theft, and ways to report scams. The FTC’s Consumer Advice section also helps you understand the legal implications of phishing attacks.

2. Anti-Phishing Working Group (APWG)

The Anti-Phishing Working Group (APWG) is a worldwide group of companies, government offices, and police teams working together to stop phishing attacks.

They provide useful tools for individuals and businesses, such as warnings about phishing, learning materials, and research papers. APWG also has a system where you can report phishing attacks, which helps track and stop these scams on a larger scale.

3. Cybersecurity and Infrastructure Security Agency (CISA)

The Cybersecurity and Infrastructure Security Agency (CISA) offers helpful information about different cybersecurity risks, like phishing. They keep people informed with security warnings, advice, and rules to help both individuals and companies recognize and stay away from phishing tricks. CISA suggests using multi-factor authentication (MFA) as a top method to protect against phishing attacks.

II. Phishing Reporting Websites: How to Report a Phishing Attack

If you encounter a phishing attack, it’s important to report it immediately. These websites are perfect for reporting suspicious activity.

1. PhishLabs

PhishLabs is a well-known provider of cybersecurity services that also allows individuals to report phishing attacks. After someone reports an attack, PhishLabs looks into it and tries to stop it from spreading. They also offer detailed resources on recognizing and preventing phishing scams.

2. Phishing Initiative

The Phishing Initiative is a tool that helps companies and people report phishing scams. It helps raise awareness about social engineering and how phishing tricks are changing. Their reports track phishing trends and help protect against new attacks.

3. Google Safe Browsing

Google’s Safe Browsing tool allows you to report phishing websites directly to Google, helping protect users who may encounter malicious sites. This tool is really useful for anyone who finds bad links or fake websites and wants to make sure others don’t get tricked.

III. Cybersecurity Blogs and Tools: Stay Updated on Phishing Trends

It’s important to keep informed on the latest phishing techniques and cybersecurity threats. Here are some great blogs and tools to help you learn about phishing scams and protect yourself:

1. Krebs on Security

Krebs on Security is a well-known blog managed by journalist Brian Krebs. He provides updates on phishing and other cyberattacks. The blog offers practical tips for businesses and individuals to protect their data.

2. Cybereason Blog

Cybereason specializes in cybersecurity and provides helpful advice for avoiding phishing and other internet dangers. Their blog helps businesses stay safe from cyber threats like spear phishing and email phishing scams.

3. KnowBe4 Blog

KnowBe4 is a website that teaches people about online safety. It helps companies create a safe environment by training their employees to recognize cyber threats.

 Their blog provides useful advice on stopping phishing attacks using employee education, special tools, and awareness programs. They also show real phishing cases, give training suggestions, and explain the tricks used by hackers.

Phishing Detection Tools

In addition to blogs, there are several cybersecurity tools available to help businesses and individuals protect themselves from phishing attacks. These include:

• Anti-phishing browser extensions like Web of Trust (WOT) and Avira Safe Shopping warn users about potential phishing sites before they click on them.
• Spam filters in email programs like Gmail and Outlook that can automatically detect and block phishing emails.
• Email authentication tools like DMARC (Domain-based Message Authentication, Reporting, and Conformance) help prevent email spoofing.

Final Words

Phishing attacks are a growing threat to both individuals and businesses, often causing financial loss and reputational damage. Cybercriminals use deceptive tactics, such as email phishing, vishing, and smishing, to steal sensitive information like login credentials and credit card details.

To protect yourself, always verify sources, avoid suspicious links, and enable multi-factor authentication. Businesses should invest in employee training, anti-phishing tools, and cybersecurity software to prevent breaches. Staying alert and informed can help safeguard against phishing and other online scams.

FAQS

What is phishing in cyber security?

Phishing in cybersecurity is a type of online scam where attackers trick people into sharing sensitive information, like passwords or credit card details, by pretending to be trustworthy sources, usually through fake emails or websites.

What is phishing?

Phishing is a scam where attackers trick people into revealing personal information, like passwords or credit card details, by pretending to be legitimate sources, often through fake emails or websites.

How can I spot a phishing email?

To spot a phishing email:

1. Check the sender’s email address:  Look for any small spelling errors.
2. Look for urgent or threatening language: Phishing emails often create a sense of urgency.
3. Unusual attachments or links: Don’t click on links or open attachments from unknown senders.
4. Watch for poor grammar – Many phishing emails have spelling or grammar mistakes.

What should I do if I click on a phishing link?

If you click on a phishing link, immediately disconnect from the internet, run a virus scan, and change your passwords. Notify your bank or relevant services if you enter sensitive information.

Can phishing attacks happen through text messages?

Yes, phishing attacks can occur through text messages, known as “smishing.” These messages often contain links or prompts to steal personal information, so avoid clicking on unknown links.

What is a spear phishing attack?

A spear-phishing attack is a targeted phishing attempt where the attacker customizes the message for a specific individual or organization, often using personal details to make it seem legitimate and increase the chances of success.

How can I protect myself from phishing attacks?

To protect yourself from phishing attacks:

• Verify sources: Double-check the sender’s email or phone number.
• Avoid suspicious links: Don’t click on links or attachments from unknown sources.
• Use strong, unique passwords: Change passwords regularly and use a password manager.
• Enable multi-factor authentication: Adds extra security to your accounts.
• Install security software: Keep your antivirus and firewall updated.
• Educate yourself: Recognize common phishing signs like urgent requests or poor grammar.

How do phishing attacks impact businesses?

Phishing attacks can lead to data breaches, financial loss, and reputational damage for businesses. They may also result in legal consequences if sensitive customer or employee data is compromised.

How do I report a phishing attack?

To report a phishing attack, forward the suspicious email or message to the relevant organization (e.g., your bank or email provider). You can also report it to government agencies like the FTC or Anti-Phishing Working Group.

How can AI help protect your business from phishing scams?

AI can help protect your business from phishing scams by detecting suspicious emails, links, and patterns in real time. It can also block harmful messages and identify potential threats, providing early warnings to prevent attacks.