What are phishing attacks, and how can I protect my business from phishing attacks?

Phishing attacks are online attacks targeted at individuals, businesses or corporate organisations, tricking them into revealing sensitive information. 

Crime is everywhere, from our homes to our businesses. One of those crimes that affect our finances and daily lives is phishing scams that come in the form of phishing attacks. In this article, we shall be checking out the ins and outs of phishing attacks and how businesses can protect themselves.

But before we dig in, we can’t help but let the world know that businesses face a growing threat. As the days go by, phishing scammers are becoming more and more effective, using technologies like AI, machine learning, and social engineering to target more and more victims, plunging them into significant financial loss. To find solutions to this menace, we need to first define what phishing scams are.

What is Phishing?

Phishing is best described as an online attack targeted at individuals, businesses, or corporate organizations, tricking them into revealing sensitive information, which can include passwords, credit card numbers, banking or transactional information, and more. Phishing attacks usually come in the form of emails or text messages. They also can come in the form of websites that appear legitimate. The selling point of phishing scams or attacks is the fact that they are made to look like they came from real or trusted organizations. The end game of a phishing scam is access to the victim’s data, money, secret documents, or access to the internal systems of the business. Phishing scams usually manipulate people into falling for their tricks through the use of psychology, fear, the sense of urgency, and the victim’s greed.

How Do Phishing Scams Work?

Phishing scams are carefully thought-out scams that follow a pattern that only one who knows will find predictable. They can vary in complexity and can get complicated and difficult to solve. This is how phishing scams work:

1. The Bait

Phishing attacks often target victims by sending out bulk emails, SMS, or posts on social media. These communications are made to appear as though they are from reliable sources, such as reputable banks and other respectable companies. One common characteristic of these messages is that they consistently beg the recipient to perform a desired action, such as opening an attachment or clicking a link.

2. The Hook 

The victim is led to a phony website or asked for private information after falling for the trick—by clicking a link or opening an attachment. On the other hand, the attachment may include malware, a kind of virus that attaches itself to your device and steals your personal data before transferring it to criminals.

The Catch

The con artist obtains access to the victim's system or gathers the information. Identity theft, financial fraud, or a significant data breach may result from this.

The repercussions for corporations might be dire. A single phishing assault has the potential to compromise client information, cause operational disruptions, and result in significant fines for noncompliance with sensitive information protection regulations.

How Can Businesses Report a Phishing Attack?

If your business falls into the hands of phishing scammers, it is very important that you act as fast as you can to prevent further damage and help authorities find the criminals, bring them to justice, and help you recover your assets. The following highlights how to get that done:

1. Internal Reporting

You need to immediately notify the part of your team that deals with cyberattacks of the problem so that they can quickly fix it before it spreads and causes more damage. This could be the IT department or the cybersecurity team. 

Steps they can take to contain the attack include isolating the affected systems and changing compromised passwords.

2. Report to Authorities

It is also advisable that you report the incident to regulatory bodies. These bodies can help investigate the issue, find the culprit, recover lost assets, and bring the culprits to justice. 

3. Notify Affected Parties

You will also need to notify everyone who has been affected by the data breach. It is in the organization's best interest if they are transparent and honest about what happened. They can also go as far as providing guidance to their customers to safeguard themselves. 

4. Work with Law Enforcement

It is also in the organization's best interest to contact law enforcement authorities in case they have a fraud issue or data theft. Law enforcement has well-equipped cybercrime units that can help investigate the attack and recover things that have been taken. They also have the capacity to prosecute the criminals and bring them to justice. Involving them also gives information on phishing attacks for future legislation and investigations.

5. Learn from the Incident

They say experience is the best teacher. They also say that once bitten is twice shy. Every organization that has been through the fire of phishing incidents must ensure that they learn from their mistakes and take proactive measures to prevent it from happening in the future. They also have to take the event as a clarion call to ensure that they continually keep their organization and its systems protected from criminals that will exploit the loopholes.

Related: Top 5 Scam Techniques You Need to Know

How Can Businesses Protect Themselves from Phishing Scams?

Prevention, they say, is better than cure. You need to prepare for all eventualities, including a phishing attack. How do businesses do that? Here's how:

1. Invest in Optimal Scam Prevention Tools

You will need to invest in tools for email filtering that use advanced technology to detect and block phishing emails before they reach your employees’ inboxes.

You would also need to put in place anti-malware software to protect against malicious attachments or links. Make sure you frequently update the software to keep up with the latest schemes used by criminals.

Multi-Factor Authentication (MFA) is also required to ensure an extra layer of security while accessing the sensitive parts of your organization's system. This would keep scammers out even if they steal a password.

2. Educate Employees

They say knowledge is power; providing your employees with regular phishing awareness training helps them to recognize phishing attempts and know how to stop them in their tracks. You can use simulated phishing exercises to test their knowledge and reinforce good habits.

You also need to put in place clear reporting procedures to help your employees flag and report any suspicious emails or messages. Making the system free of hate and blame and guaranteeing their protection and safety.

3. Implement Strong Policies

You have to enforce strict password policies, including regular updates to sanitize the system. You also need to encourage your staff to use complex passwords to keep criminals from guessing them.

You would also need to limit the access of your employees to sensitive information. Make it a for-some-eyes-only arrangement only for employees who have clearance or need it. This reduces the risk of a phishing attack compromising critical data.

4. Monitor for Threats

Vigilance is key to ensuring your system and assets are free from phishing attacks. You will need to monitor your network using appropriate tools. This would check for unusual activity, such as unauthorized access attempts or data transfers, and pinpoint the origin of the breach. You will also need to have an Incident Response Plan (IRP), which will help you properly respond to phishing attacks. This plan should include steps for containment, investigation, and recovery in case things fall apart.

5. Stay Informed

Keeping up with trends and tactics used by phishing scammers helps you evolve as they do, protecting yourself from trouble. You also need to forge alliances with others in the industry, making a united front against phishing attacks. You need to join industry groups and share information about the best practices against phishing scams.

Related: What You can do to Avoid Identity Theft and Credit Fraud

Phishing Scam Recovery: What to Do After an Attack

Sometimes, you can use the right tools and do the right things but still fall victim to phishing scams. It is a hard fact that no one, individual or organization, is completely immune to these scams. In case you get attacked and need to recover quickly, here are a few things you need to keep in mind:

1. Contain the Damage

In case you do get attacked, you can be on your road to recovery by containing the damage before it spreads to affect every part of your organization. To do that, you need to immediately isolate the affected systems, change passwords, and curb all access to sensitive information or accounts.

2. Assess the Impact

They say you do not really move on until you figure out what put you in your issue in the first place. This is also true for phishing scam recovery. You need to find out what was stolen, the scope of the attack, and how much it has affected you.

3. Communicate Transparently

They say if you hide your problems, they will become more problems. In this case you need to let all stakeholders in your organization, from your customer to your staff, know what went wrong. It is best to be honest about what happened and let them know that you are working proactively to amend it.

4. Strengthen Defenses

You must strengthen your defenses to ensure that you do not fall victim again to phishing scams. You'd need to invest in more tools and security policies and provide optimal training to your staff.

You need to use the incident as a learning opportunity. 

5. Rebuild Trust

Phishing attacks can go as far as to erode or damage the trust your stakeholders or customers have in your company. You will have to rebuild it through massive PR campaigns and a demonstration showing your commitment to user safety.

Conclusion

With all we have iterated above, you can now see how businesses can protect themselves from phishing attacks. The tactics highlighted in this discourse will give businesses and individuals the upper hand against the menace of phishing attacks. In retrospect, training your staff and investing in fraud protection technologies will help you achieve this aim. It is also advisable for you to have a well-defined plan in case you fall victim and need to recover quickly. Being on your toes is the key to keeping yourself immune to the menace of phishing attacks, so it is best to start putting measures in place to fortify your organization and its interests.

Organizations or businesses wanting to stay fraud-proof against phishing attacks and other fraud attacks use Youverify. Our solutions are tailored to suit your needs, and we give you the best anti-fraud protection by integrating our technology into your fraud prevention system. Book a demo today and join more than 2,000 businesses to prevent fraud in your business.