What Are Phishing Scams and How Do They Work?
1. Impersonation
2. Deceptive Communication
They send seemingly legitimate emails, SMS messages, or pop-up alerts that create a sense of urgency. For example, you might receive a message saying, “Your account has been compromised! Click here to verify your details.”
3. Malicious Links or Attachments
4. Unsecured Networks
5. Data Extraction
Once the scammer has your information, they may use it to access your real accounts, steal funds, or sell your data on the dark web.
Phishing attacks are on the rise. According to the Anti-Phishing Working Group, there were 932,923 reported phishing incidents in Q3 2024, up from 877,536 the previous quarter. With 96% of phishing attacks being delivered via email, it’s clear that email is the primary platform for such scams.
Gone Phishing: Another Attempted Scam on My Business
Recently, my company became the target of a phishing attack. Not long ago, we had dealt with an impersonation scam, and now, we faced another scam attempt — this time, phishing.
It all started when I received an email that appeared to come from a legitimate source. The email claimed that a new company policy had been added to our “All Employee Handbook” and instructed me to scan a QR code for further details.
The problem? We don’t have an “All Employee Handbook,” and there was no such department called the “Policy Department” — something that instantly raised my suspicions. I took a closer look at the email, and sure enough, it had all the classic signs of a phishing attempt: a sense of urgency, my company’s logo, and an attempt to get me to click on a link or scan a QR code.
I immediately reported the email as phishing and shared the experience with my team. It was a stark reminder of how sophisticated and dangerous these scams can be. However, other businesses and individuals were not so lucky.
Case Study: DoorDash Phishing Scheme
In June 2020, David Smith orchestrated a phishing scam targeting DoorDash drivers. After placing orders, Smith would contact drivers using an app that mimicked DoorDash’s support number. He claimed their accounts had been frozen due to a stolen credit card and directed drivers to a fake website designed to steal their login credentials.
Once Smith gained access to the drivers’ accounts, he would change their banking information to his own, triggering cash-outs to siphon off their hard-earned delivery money. Over 700 drivers were affected, and Smith stole an estimated $950,000 through this phishing scam.
Steps You Can Take to Protect Your Business
Protecting your business from phishing scams requires vigilance and preparation. Here are a few steps you can take to safeguard your company:
- Strengthen Your Verification Processes: Implement multi-factor authentication (MFA) and create strict verification protocols for financial transactions. Always verify requests for payments or account changes through direct communication, such as phone calls, before taking action.
- Invest in Employee Training: Regularly educate your team on how to spot phishing attempts. Teach them to recognize red flags, like unsolicited requests for sensitive information or unfamiliar email addresses. Your employees are your first line of defense.
- Create an Incident Response Plan: No matter how careful you are, phishing scams may still succeed. Develop a comprehensive incident response plan to minimize damage if an attack occurs. Quickly identifying and containing a breach can make all the difference.
Conclusion
Phishing scams are becoming more sophisticated and dangerous with each passing day. While they pose a significant threat to your business, taking the right precautions can greatly reduce your susceptibility.
To help you assess your business’s security posture, we’re offering a free InfoSec Scorecard. This quick 10-question survey gives you a personalized report with actionable insights to strengthen your defenses. Don’t wait for a cyberattack—take a proactive approach to your cybersecurity today.
