Introduction to Phishing

Phishing has become one of the most prevalent and dangerous cyber threats in today’s digital world, targeting individuals and organizations alike. This deceptive practice involves attackers using fake emails, text messages, or websites that appear legitimate in an attempt to steal sensitive personal information, such as passwords and financial details. The effectiveness of phishing lies in its ability to exploit human emotions—like fear and urgency—leading victims to act quickly without critical thinking. As cybercriminals continually refine their tactics, including the use of AI to create highly personalized scams, it is essential for everyone to recognize the signs of phishing and adopt protective measures. With statistics revealing that a significant portion of cyberattacks begin with phishing, understanding this threat is crucial for safeguarding personal and organizational information in an increasingly interconnected world.
Written by
Joshua Crumbaugh
Published on
September 10, 2024

1.1 What is Phishing? An Overview

Phishing is a common type of online scam where attackers try to trick people into giving away personal information, like passwords, credit card numbers, or bank account details. This usually happens through emails, text messages, or fake websites that look like they’re from a trustworthy source, such as a bank, a popular online service, or even someone you know. The goal of phishing is to get you to click on a link, open an attachment, or share sensitive information without realizing it’s a scam.

One of the reasons phishing is so dangerous is that it’s easy for attackers to send out large numbers of fake emails or messages, hoping that a few people will fall for the trick. Often, these messages create a sense of urgency, like saying your account has been locked or that you need to confirm your details right away. The more believable the message, the more likely someone is to act quickly without thinking, which is exactly what the attacker wants.

Phishing works by playing on emotions like fear or curiosity. You might get an email that looks like it’s from your bank, warning you of suspicious activity on your account. Worried, you click the link to check your account, but instead, you’ve been directed to a fake website where the attacker steals your information. Because phishing attacks are becoming more sophisticated and harder to spot, it’s important to know how to recognize them and avoid falling for these scams.


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1.2 Key Terminology in Phishing

  1. Phishing – Deceptive attempts to steal personal information via fake emails, messages, or websites.
  2. Spear Phishing – A targeted phishing attack aimed at specific individuals or organizations.
  3. Whaling – A type of spear phishing aimed at high-profile targets like CEOs or executives.
  4. Smishing – Phishing attacks carried out through SMS (text messages).
  5. Vishing – Phishing conducted over the phone (voice phishing).
  6. Clone Phishing – An attack where a legitimate email is copied and altered with malicious links or attachments.
  7. Spoofing – Faking an email address, phone number, or website to appear as a trusted source.
  8. Payload – The harmful element (like malware) delivered in a phishing attack.
  9. Malware – Malicious software designed to damage or steal information, often delivered through phishing.
  10. Ransomware – A type of malware that locks users out of their systems or data until a ransom is paid.
  11. Keylogger – Software or hardware that records keystrokes to steal sensitive information such as passwords or credit card numbers.
  12. Pretexting – A social engineering attack where the attacker creates a fake scenario to steal personal information.
  13. Baiting – Using the promise of a reward (like free software) to trick people into revealing personal information or installing malware.
  14. Quid Pro Quo – An attack that offers something in exchange for information, like posing as tech support offering help in exchange for access credentials.
  15. Impersonation – Pretending to be someone else to gain information, like posing as an employee or trusted partner.
  16. Typosquatting – Registering domain names similar to legitimate sites to trick people into visiting fake websites.
  17. Watering Hole Attack – Compromising a website frequently visited by a target group in order to infect its users with malware.
  18. Credential Harvesting – Phishing attacks designed specifically to steal login credentials.
  19. Keylogger – Software or hardware that tracks keystrokes on a victim’s computer to capture sensitive information.
  20. Man-in-the-Middle Attack (MITM) – Intercepting communication between two parties to steal or alter information.
  21. Business Email Compromise (BEC) – A phishing attack that targets businesses to steal financial information or money.
  22. Reconnaissance – The phase where an attacker gathers information about a target before launching a phishing or social engineering attack.
  23. Shoulder Surfing – A technique where attackers watch over someone’s shoulder to gain personal information, such as passwords.
  24. Social Engineering – Manipulating people into giving up confidential information or performing actions that may compromise security.
  25. Keylogger – Software or hardware that tracks keystrokes on a victim’s computer to capture sensitive information.

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1.3 Phishing: The Greatest Cyber Threat

Phishing has emerged as one of the greatest cyber threats in today’s digital landscape. With the increasing reliance on online communication and services, attackers have honed their phishing techniques to become more sophisticated, deceptive, and widespread. Phishing attacks are especially dangerous because they exploit human vulnerabilities rather than relying solely on technical weaknesses. This makes phishing not only hard to detect but also difficult to prevent, as attackers continually adapt their tactics to bypass defenses.


One of the reasons phishing is so effective is its ability to target large numbers of people at once. By sending out thousands of emails or messages that appear legitimate, attackers only need a small fraction of victims to fall for the scam. These emails often create a sense of urgency or fear, pushing people to act quickly without thinking critically. For example, an email claiming that your bank account has been compromised might prompt you to click on a malicious link or provide sensitive information, opening the door for attackers to steal your data or gain unauthorized access to your accounts.


Phishing’s scope isn’t limited to individuals; businesses and organizations are also prime targets. Corporate phishing attacks, such as Business Email Compromise (BEC), aim to steal large sums of money or valuable intellectual property by tricking employees into transferring funds or revealing confidential information. The financial and reputational damage caused by such attacks can be devastating, making phishing a major concern for organizations across all industries.


What makes phishing particularly dangerous is its adaptability. Attackers continuously refine their methods, using spear-phishing (targeted attacks) and whaling (attacks on high-level executives) to increase their chances of success. With the rise of automation and artificial intelligence, phishing attacks have become more personalized and harder to detect, further compounding the threat.


As the most widespread form of cybercrime, phishing remains a top concern for cybersecurity professionals and individuals alike. Its ability to bypass even the most secure systems by preying on human behavior makes it one of the greatest cyber threats of our time. Recognizing phishing attempts and being vigilant are critical steps in defending against this evolving threat.


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1.4 Phishing: A Concern for Everyone

Phishing is not just a problem for large corporations or high-profile individuals; it is a concern for everyone who uses the internet. Whether you’re an individual checking your email, a small business owner managing finances, or an employee at a large organization, phishing poses a serious risk. This form of cyberattack preys on everyday human behaviors, such as trust, curiosity, and the tendency to respond quickly to what seems urgent. Because phishing attacks are often disguised as legitimate messages from trusted sources—like banks, employers, or online services—anyone can fall victim to them.

One of the reasons phishing is so widespread is its accessibility for cybercriminals. Launching a phishing campaign doesn’t require advanced technical skills. Attackers can easily purchase phishing kits on the dark web, making it simple to send thousands of fraudulent emails or messages with minimal effort. The low cost and high potential rewards make phishing appealing to attackers of all kinds, from novice hackers to organized cybercrime groups.

For individuals, phishing can result in personal data theft, financial loss, or identity fraud. Receiving an email that looks like it’s from your bank or a service you use, you might be tricked into providing sensitive information, like your password or credit card number. For small businesses, phishing attacks can lead to unauthorized access to company accounts or the compromise of sensitive client data, damaging both finances and reputation.

Even the most tech-savvy people can fall victim to phishing. Cybercriminals have evolved their tactics, using more sophisticated and personalized messages to trick recipients into acting without thinking. This means that staying vigilant is crucial for everyone, regardless of their digital expertise. Phishing is truly a concern for everyone because it exploits trust and common online behaviors, making it a threat to individuals, businesses, and organizations of all sizes. By learning how to recognize phishing attempts and staying cautious, we can all take steps to protect ourselves from this ever-present danger.


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1.5 Phishing Statistics Everyone Should Know​

Phishing Statistics Everyone Should Know


  1. 90% of successful cyberattacks start with a phishing email: A significant number of data breaches originate from a phishing email, underscoring how effective phishing can be as an entry point for attackers.
    Source: Cisco 2023 Cybersecurity Threat Report
    https://www.cisco.com/c/en/us/products/security/security-reports.html
  2. Human error is the leading cause of phishing success: Over 85% of phishing incidents are successful due to individuals falling for deceptive tactics, highlighting the importance of user awareness and training.
    Source: IBM 2023 Cost of a Data Breach Report
    https://www.ibm.com/security/data-breach
  3. Phishing attempts targeting cloud-based emails have increased by 63%: As cloud services like Microsoft 365 and Google Workspace grow in popularity, phishing attacks are increasingly aimed at compromising these accounts.
    Source: Microsoft Security Intelligence Report 2023
    https://www.microsoft.com/security/blog
  4. The average cost of a phishing attack on a mid-sized business is $1.6 million: Beyond the immediate damage, phishing attacks can result in significant financial losses, including system downtime, data recovery, and lost business.
    Source: Ponemon Institute 2023 Phishing Cost Study
    https://www.ponemon.org/research
  5. Phishing websites surged by 400% in 2020: The creation of fake websites used in phishing attacks spiked dramatically during the COVID-19 pandemic, taking advantage of increased online activity.
    Source: Google Safe Browsing Report 2020
    https://transparencyreport.google.com/safe-browsing/overview
  6. 68% of phishing attacks are financially motivated: A majority of phishing attacks aim to steal money, either through financial fraud, ransomware, or identity theft.
    Source: Verizon 2023 Data Breach Investigations Report
    https://www.verizon.com/business/resources/reports/dbir/

The Role of AI in Phishing


  1. AI-powered phishing attacks are growing by 135% annually: The use of AI to craft more sophisticated and personalized phishing emails is on the rise, making it harder for traditional detection methods to identify malicious content.
    Source: Forrester Research
    https://www.forrester.com
  2. AI-generated phishing emails have a 30% higher success rate: Emails created using AI are often more convincing because they mimic human language more effectively, leading to a higher likelihood of recipients falling for the scam.
    Source: Europol’s Internet Organized Crime Threat Assessment (IOCTA) 2021
    https://www.europol.europa.eu
  3. AI-driven phishing attacks exploit data at scale: AI can analyze vast amounts of personal data from social media, company websites, and public databases to craft targeted spear-phishing attacks.
    Source: Symantec 2023 Internet Security Threat Report
    https://symantec-enterprise-blogs.security.com
  4. Deepfake phishing attacks are emerging: AI is being used to create deepfake videos or audio recordings that impersonate company executives or high-level officials, increasing the effectiveness of Business Email Compromise (BEC) and vishing attacks.
    Source: FBI Internet Crime Complaint Center (IC3) 2023
    https://www.ic3.gov
  5. AI is automating phishing kits and malicious chatbots: AI-powered chatbots are being used to automate phishing attempts, enabling attackers to scale operations quickly.
    Source: Trend Micro 2023 Midyear Cybersecurity Report
    https://www.trendmicro.com

Business Email Compromise (BEC) Statistics


  1. BEC attacks caused $2.7 billion in losses in 2022: BEC is one of the most financially damaging types of phishing, with the FBI reporting significant global financial losses attributed to these highly targeted attacks.
    Source: FBI Internet Crime Report 2022
    https://www.ic3.gov
  2. BEC attacks make up 19% of all cybercrime losses: Despite being fewer in number compared to traditional phishing attacks, BEC accounts for a significant portion of total cybercrime financial losses.
    Source: Verizon 2023 Data Breach Investigations Report
    https://www.verizon.com/business/resources/reports/dbir/
  3. 77% of businesses targeted by BEC attacks in 2022: A majority of businesses have experienced at least one attempt at BEC, indicating the widespread nature of these attacks.
    Source: Proofpoint 2023 State of the Phish Report
    https://www.proofpoint.com/us/resources/threat-reports/state-of-phish
  4. Average financial loss per BEC incident: $120,000: BEC attacks are highly lucrative, with the average successful attack leading to substantial financial losses for the targeted organization.
    Source: Palo Alto Networks 2023 Unit 42 Threat Report
    https://unit42.paloaltonetworks.com
  5. BEC attacks have increased by 65% in 2022: With more sophisticated tactics such as email spoofing and deepfake audio, BEC attacks are rising rapidly and evolving in complexity.
    Source: Mimecast 2023 Email Security Report
    https://www.mimecast.com/content/email-security-report/

Phishing, especially when augmented by AI and advanced BEC tactics, has become one of the most severe threats in the cyber landscape today. From the financial losses to its ease of execution, phishing remains a top concern for businesses and individuals alike. With attackers leveraging AI to enhance their phishing attempts and targeting high-value victims through BEC, the threat continues to evolve. Staying vigilant and informed about these statistics is crucial to understanding and combating the growing risk of phishing in all its forms.


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Meet The Social Engineer

Joshua Crumbaugh

Recognizing the challenges and variation in applying psychology theory to real-world environments, I founded PhishFirewall, a security awareness and phishing training company built on these principles I’ve spent my career refining. We test and apply these concepts in diverse and practical ways to fit each organization’s unique needs.

I invite you to benchmark my company and discover how even slight changes in your approach can yield tremendous impacts on your organization’s security posture.

Hi, I’m Joshua Crumbaugh, and I’m proud to say that for over 20 years, I’ve been one of the leading Ethical Hackers in the United States. I’ve had the privilege of leading Red Teams for Fortune 500 companies, banks, governments, and large-scale enterprises, and and I routinely advises law enforcement agencies across the country and other industry leaders on emerging threats posed by human vulnerability.

The constant evolution of technology has advanced the tradecraft of exploiting people, but the good news is that people can be trained to become the most effective line of defense in any organization. Let’s work together to turn your people into your strongest line of defense.

What is PhishFirewall?

PhishFirewall is an emerging leader in people cybersecurity solutions designed to stop users from clicking on phish and empowers them to operate securely in the workplace.

AI autonomously delivers comprehensive awareness training and phishing simulations to optimize an organization's security posture and provides a one stop solution for industry specific compliance requirements. Unlike traditional tools, it provides zero campaign management, allowing administrators to strategically manage their priorities, with the added benefit of offering a streamlined, one-time setup with ongoing personalized training.
Key Benefits
Fully automate administrative management, reporting, and "just in time" communications.
Reduce organizational risk by 34% through customized training.
Increase employee engagement and performance by 42% without the punitive measures
“You set your people up in this system, and it just does it. It does it all."
– CISO, State Government
>80,000 Employees
“Once you see this in action, you can’t go back to the old way of training and testing.”
– CEO, Major Logistics Firm
>10,000 Employees
“This is security training 2.0, even the doctors do it!”
– CISO, Large Hospital
>30,000 Emoloyees

Key Features

Role-Based Phishing and Training

Tailor phishing simulations and training to each user’s role within the organization.

Customized Interaction and Testing

Adaptive training and testing based on individual performance and vulnerabilities for a personalized growth experience.

60-Second Training Modules

Quick, impactful training modules delivered in 60 seconds or less to fit seamlessly into your employees' day scaled at the frequency you want.

Complete Compliance Frameworks

Tailor phishing simulations and training to each user’s role within the organization.

Fast-Track Compliance

Accelerate your path to compliance with streamlined onboarding.

“Report a Phish” Button

Empower users to report suspicious emails with one click, improving overall security, speed of containment, and reduce the reach within the organization.

Multi-Language Delivery

Connect a global audience with training modules available in multiple languages.

Dual Coding Engagement

Enhance learning retention through dual coding techniques for better understanding and performance.

Extensive Training Library

Access a vast library of training materials that cover a wide range of security topics.

Customizable Training Modules

Create and deploy your own training modules to address specific needs within your organization.

Auto-Generated Reporting

Easily access automated reports that track progress and highlight areas for improvement.

User Report Cards

Provide individual feedback through user report cards, helping employees track their performance.

Organizational Leaderboards and Summaries

Foster healthy competition and track overall progress with organizational leaderboards and performance summaries.

Interactive Charts and Graphs

View trend analysis and performance distributions in real-time through dynamic, easy-to-read charts and tables.

Best-in-Class Administrative Dashboards

Manage your training programs effortlessly with intuitive, best-in-class dashboards designed for ease of use.

One-Day Setup

Get up and running quickly with a setup process that takes just a few hours.

Scalability

Effortlessly onboard new users and can be scaled to an organization of any size.

More In the Pipeline

We are always striving to innovate, and create the features that solve your problems!
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