Phishing Simulation – A Simple Yet Powerful Tool Against Cyberthreats

Phishing Simulation

Phishing Simulation is a common CyberSecurity tool that can help keep your data security up to date in the rapidly advancing digital world and its equally rapidly occurring advancements in cyberthreats. A tool to protect your organization from Cyber Threats.

What is Phishing?

“Phishing” refers to the cybertheft attempts at stealing sensitive information (Personal Identifiable Information – PII) like usernames, passwords, credit card details, bank account details, tax and medical records etc. from the users. The stolen information is then either used or sold in the dark web at a premium. The attacker, disguised as a reputable source with a genuine request, tricks the victim into clicking the link and losing their personal data.

Phishing attacks typically occur via email or SMS, and can be vaguely categorized into:

Advance Fee Scam: Here, the mail/message contains a request, for example, that from an unknown millionaire who claims to be imprisoned somewhere and requests you to lend some small amount of money, promising to give you a hefty amount in return once he is free and is able to access his wealth. The “Nigerian Price” and the “Spanish Prisoner” scams are the two most common examples of this category of scams.

Account Deactivation Scam: In this scam, the attackers create a sense of urgency by claiming that some important account of the user will be deactivated if not acted upon promptly. This way, they entice the victim into sharing their login credentials or even OTP.

Website Forgery Scam: Sometimes the phishing mails contain links which seem genuine and clicking on them redirects the user to a fake website which is very much identical to the real website (like that of a bank). The information, thus entered by the victim is all grabbed by the fraudsters and used in malicious acts.

Further, there are various categories under which the phishing attacks can be categorized. Email phishing refers to any malicious email intended to deceive users into revealing confidential information, such as account credentials, personal data, and corporate secrets. Spear phishing is the one that targets specific individuals, often those with high-level access, to extract sensitive data, money, or install malware. Link manipulation directs recipients to a fake site mimicking a legitimate one, where their credentials are captured. Whaling, or CEO fraud, deceives high-profile employees into thinking an executive is requesting a financial transfer. Content injection is when malicious content is placed on official sites to mislead users. Malware phishing involves tricking users into downloading harmful software, like ransomware or keyloggers. Smishing makes the use of SMS to lure users to malicious websites. Vishing employs voice-changing software to scam victims over the phone. “Evil Twin” Wi-Fi involves setting up fake hotspots to intercept user data while Pharming redirects victims to fake websites to steal login information through malware or DNS poisoning. Then there is Angler phishing that uses social media to pose as legitimate entities and gather personal information and finally, Watering hole attacks that exploit vulnerabilities on commonly visited sites to distribute malware or direct users to phishing sites.

Statistics

There are many stats available allowing us to peek into the historical data that mentions the number, types of phishing attacks recorded and the huge costs incurred due to these Phishing attacks but what’s more intriguing are the projections that we have for the future years. Despite all the advancements in technology and the latest tools for countering the cyber-attacks, the numbers keep increasing exponentially every year. Below are some statistics under various categories to highlight the gravity of the concern in the modern tech world.

Cost of Cyber-attacks:

Cybercrime is a growing global concern, with worldwide costs estimated to reach $10.5 trillion annually by 2025, reflecting a 15% annual growth rate over the next two years. In 2024, cybercrime is predicted to cost the world $9.5 trillion USD. The United States consistently faces the highest data breach costs, averaging $5.09 million in 2023. The financial impact on organizations is substantial, with the global average cost of a data breach in 2023 being $4.45 million, a 15% increase over three years. The rise in remote work has further exacerbated these challenges, increasing the average cost per breach by $173,074. Additionally, cyber insurance premiums in the US surged by 50% in 2022, totaling $7.2 billion. This trend is underscored by 75% of security professionals reporting an increase in cyberattacks over the past year.

Sources: Cyber Security Ventures, Forbes, IBM, Insurance Journal, CFO.

Phishing attacks:

Phishing remains the most prevalent email attack method, representing 39.6% of all email threats in 2024. A staggering 94% of malware is delivered via email. Spear phishing attachments were used in 62% of phishing attacks, while links and phishing-as-a-service were employed in 33% and 5% of cases, respectively. Credit card information was targeted in only 29% of phishing kits in 2022, marking a 52% decline from 2021. Business Email Compromise (BEC), which often involves spear phishing links, accounted for 6% of incidents, with half of these involving spear phishing links. Alarmingly, 80% of organizations hit by a BEC attack lacked multi-factor authentication (MFA) before the incident. Phishing was the primary infection vector in 41% of cybersecurity incidents, and thread hijacking attempts doubled in 2022 compared to 2021.

Sources: Hornetsecurity’s Cyber Security Report 2024 , Panda, IBM Security X-Force 2023, ArcticWolf.

Industry-wide statistics on Phishing attacks:

During the first quarter of 2024, 37.6 percent of phishing attacks worldwide targeted Social media.
Web-based software services and webmail followed, with around 21 percent of registered phishing attacks. Furthermore, Financial institutions accounted for 9.8 percent of attacks. Other industries encountered lesser but still a significant percentage of attacks, viz. payment industry (7.2%), e-commerce/retail (5.4%), logistics/shipping (5%), telecom (2%), Cryptocurrency (2%) and others (1%).

Additionally, there are other miscellaneous fields which give us a separate purview from the traditional ones. Some of these are –

Phishing remains a significant threat in the cyber landscape, with Google blocking around 100 million phishing emails daily.

In Q1 2022, LinkedIn was the most imitated brand for phishing attempts globally, followed by DHL, Google, Microsoft, and FedEx.

Phishing was the most disruptive form of cybercrime for UK businesses in 2022.

Millennials and Gen-Z users are the most likely to fall victim to phishing, and 90% of phishing attacks via messaging apps are sent through WhatsApp.

Phishing campaigns show high effectiveness, with targeted campaigns incorporating phone calls achieving a click rate of 53.2%.

Further, the manufacturing, finance, and energy sectors are notably affected by phishing attacks, with significant portions of cyberattacks in these industries involving phishing. In the retail industry, phishing was the primary method used in 38% of attacks in 2021.

Sources: Hornetsecurity’s Cyber Security Report 2024, Panda, IBM Security X-Force 2023, ArcticWolf, Statista, Cybersecurity Ventures, CFO, Sophos, SC Media, IBM Security X-Force 2023, Check Point, Chainalysis Mid-year Update, SpyCloud 2023 Ransomware Defense Report, eCrime Ransomware and Data Leak Site Report 2023, Insurance Journal, IBM, Forbes, Cybersecurity Ventures.

Anticipatingly, some eye-opening facts one should be aware of – Phishing deception is going to continue, with cybercriminals exploiting familiar branding to bluff users.

In 2022, over 30 million malicious messages used Microsoft products or branding, highlighting the need for vigilance.

Telephone-oriented attack delivery attempts surged, peaking at 600,000 per day in August.

Financial losses from successful phishing attacks increased by 76% in 2022.

User reporting blocked 75 million threats, and 55% of phishing websites utilized targeted brand names to capture sensitive information.

Regular security awareness training has proven effective, with 84% of US-based organizations noting a reduction in employee susceptibility to phishing.

In Australia, 92% of companies experienced a phishing breach, a 53% rise from 2021.

Highly impersonated brands include Google and Amazon (13%), WhatsApp and Facebook (9%), and Apple and Netflix (2%).

According to IBM’s 2022 Data Breach Report, phishing-related breaches took an average of 295 days to identify and rectify, and compromised credentials remained the most frequent cause of data breaches, involved in 19% of cases.

Phishing was the second most common cause of breaches, accounting for 16% and costing an average of $4.91 million.

Sources: F5 Labs Phishing and Fraud Report 2020, IBM’s 2022 Data Breach Report, IBM’s 2022 Cost of Data Breach Report.

Importance of phishing awareness and training:

The probability of an organization falling prey to random Phishing attacks turns higher with the vulnerability of the work force and the work force is deemed vulnerable if they haven’t been cautioned, prepared and trained to identify and deal with the phishing attempts. Much more than the technical tools available these days is the effectiveness of an employee who can spot and report suspected phishing attempts thereby protecting themselves and their company from cybercriminals, hackers and the likes.

The anti-phishing regimen to be followed may comprise of the following steps:

The first step is to start educating the employees as to the basics of a phishing attack –

What it is?
What makes it so harmful for the organization?
How to detect and report the phishing attacks?

The mode of training can be either online, classroom, written documents or through video tutorials.

Create Simulated Phishing Campaigns in order to reinforce the theoretical training imparted so far.
Redirect the employees, who fall prey to the simulated phishing attempts, to the training sessions for a better understanding and a refined response for the future instances.
Monitor the simulation results to zero-in on the type of attack that was most successful and the teams/departments which were most vulnerable to the attack. Your phishing protection training and other defenses should be modified accordingly.

What is Phishing Simulation?

So, coming to the crux of this article – what, then, is Phishing Simulation and why is it such a rage now a days?

Phishing Simulation or Simulated Phishing, as can be inferred from the name, is an imitation of real-world phishing emails that organizations send to the employees to test their knowledge as well as preparedness in the face of a phishing attack.

How does it work?

Employees in your organization receive simulated phishing attacks designed to mimic real-world scams. When recipients click on the malicious link or take actions that would have compromised sensitive information in a genuine phishing scenario, they fail the test. Organizations track employee behavior during these simulations, assessing their actions and evaluating risk levels based on their responses.

To effectively reduce the click rate, it is advised that organizations conduct these simulations 4 to 10 times annually.

One thing to make sure here is that these sessions don’t turn intimidating and overwhelming for the workforce, which, in turn, might not deliver the results as expected.

How should it be done?

Below are the general steps involved:

The process typically involves five key steps:

Planning: Organizations have to start by defining their objectives and setting the scope, deciding on the types of phishing emails to use and the frequency of simulations. They also need to identify the target audience, including specific groups, departments, and often executives.
Drafting: The IT Security teams then are required to create realistic mock phishing emails that closely resemble real threats. They have to use templates and phishing kits from the dark web, paying close attention to details like subject lines, sender addresses, and content. Social engineering tactics, such as impersonating an executive or fellow employee, are often included to increase the likelihood of employees clicking the emails.
Sending: Once the content is finalized, IT teams or external vendors then need to start sending the simulated phishing emails to the target audience through secure channels, ensuring privacy.
Monitoring: The simulators then closely track and record how employees interact with the simulated emails, observing if they click on links, download attachments, or provide sensitive information.
Analyzing: After the phishing test, the IT department is supposed to analyze the simulation data to identify trends like click rates and security vulnerabilities. They follow up with employees who failed the simulation, providing immediate feedback on how to properly identify phishing attempts and avoid real attacks.

Upon completing these steps, many organizations compile a comprehensive report summarizing the outcomes of the phishing simulation to share with relevant stakeholders. They use these insights to improve security awareness training and repeat the process regularly to enhance cybersecurity awareness and stay ahead of evolving threats.

What are the considerations to ensure its effectiveness?

When working on a phishing simulation campaign, organizations should consider the following elements to maximize its effectiveness:

Regular Testing: It is important to conduct phishing simulations consistently throughout the year, employing various phishing techniques. This approach helps maintain cybersecurity awareness and ensures that employees remain vigilant against ever-changing phishing threats.
Content Authenticity: Simulated phishing emails should closely resemble real-life phishing attempts. Using templates based on common phishing attacks can enhance this authenticity. For instance, a template might replicate a business email compromise (BEC), where cybercriminals impersonate an organization’s executive to trick employees into divulging sensitive information or transferring funds. Security teams should thoroughly research the sender and recipients to make the simulation credible.
Strategic Timing: The timing of phishing simulations, although very important, can vary based on organizational needs and priorities. Some organizations prefer to run a phishing test before employees undergo any phishing awareness training to establish a benchmark. Others choose to test after training to assess its effectiveness. The ideal timing depends on the specific goals and requirements of the organization.
Educating through Follow-Up: Regardless of the timing, phishing simulations should be part of a broader security awareness training program. Providing follow-up training helps employees who failed the test to feel supported rather than deceived, offering knowledge and strategies for identifying suspicious emails or real attacks in the future.
Constant Monitoring and Trends Identification: After each simulation, organizations should measure and analyze the results to pinpoint areas needing improvement, including employees who may require additional training. Security teams should stay updated on the latest phishing trends and tactics to ensure future simulations keep testing employees with the most relevant and current threats.

What Benefits can we reap out of it?

Phishing Simulation, in today’s cyber era, is a necessity for every organization, big or small. Below are a few benefits that phishing simulation offers:

Employee Awareness: Regular simulations keep employees alert and better prepared to recognize phishing attempts.
Improved Security: Identifying and addressing vulnerabilities through simulations strengthens overall organizational security.
Reduced Risk: Training employees reduces the likelihood of successful phishing attacks, lowering the risk of data breaches and financial losses.
Employee Education: Simulations provide practical learning experiences, helping employees understand and avoid phishing scams.

Performance Metrics: Organizations can track the effectiveness of their security awareness programs and identify areas needing improvement.
Cost Savings: Preventing phishing attacks can save organizations from the high costs associated with data breaches and cyber incidents.
Compliance: Regular phishing simulations help organizations meet cybersecurity compliance requirements and best practices.
Response Preparedness: Simulations help prepare employees to respond quickly and effectively to real phishing attacks.
Behavioral Change: Continuous exposure to phishing scenarios promotes a culture of security awareness and cautious behavior.

Stakeholder Confidence: Demonstrating proactive security measures enhances trust and confidence among clients, partners, and stakeholders.

What are various Tools and Resources helpful in Phishing Simulation?

Phishing simulation tools and resources are essential for organizations to bolster their cybersecurity defenses by training employees to recognize and respond appropriately to phishing attacks. These tools simulate real-world phishing scenarios to test and educate employees, helping to identify vulnerabilities and improve overall security awareness.

Apart from the various companies offering customized phishing simulation tools and services, below are a few other low cost options available:

Simple Email Testing Tools: These tools allow users to craft and send simple email messages to one or multiple recipients using a specified mail server. They lack advanced features like reporting or campaign management, making them more suitable for penetration testing than comprehensive phishing simulations.
Open-source Phishing Platforms: This category includes feature-rich free versions with community support, but they typically require significant technical skills to install, configure, and run. Most are Linux-based, making them ideal for users familiar with handling dependencies and other technical configurations.
Demo Versions of Commercial Products: Many commercial phishing simulators are offered as software-as-a-service (SaaS), providing ease of use, rich features (including reporting), and technical support. While demo versions are often available, accessing a fully functional trial can be challenging due to various requirements and limitations. Some vendors offer managed campaigns or limited demo accounts, while others provide scheduled demonstrations.

Highlighting the essence, phishing simulation has become critically important. Cybercriminals continually develop sophisticated techniques to deceive even the most vigilant individuals, making it essential for organizations to proactively train their employees. Phishing simulations provide a realistic, controlled environment where employees can learn to identify and respond to phishing attempts without the risk of actual data breaches. This ongoing training helps to cultivate a security-conscious culture, reduce the risk of successful attacks, and ensure compliance with regulatory requirements. By consistently exposing employees to simulated phishing threats, organizations can significantly enhance their overall cybersecurity posture, making it harder for cybercriminals to exploit human vulnerabilities.

Take the first step towards securing your organization today. Implement phishing simulations and empower your employees with the knowledge and skills they need to protect sensitive information. Contact Us to learn more about our comprehensive Cyber Security solutions and start fortifying your defenses against cyber threats.