Phishing Attacks: How They Work, How to Spot Them, and How to Protect Your Business

Cybercrime is evolving at a rapid pace, and phishing attacks remain one of the most effective weapons in a hacker’s arsenal. The Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) has released its latest annual report. The 2024 Internet Crime Report combines information from 859,532 complaints of suspected internet crime and details reported losses exceeding $16 billion—a 33% increase in losses from 2023.

For small businesses, phishing isn’t just a nuisance — it’s a threat that can lead to stolen funds, data breaches, and long-term reputational damage.

In this guide, we’ll explain exactly what phishing is, how it works, the different forms it takes, and — most importantly — how to protect your organization from becoming a victim.

What Is a Phishing Attack?

A phishing attack is a form of cybercrime where attackers impersonate a trusted entity (such as a bank, payment processor, government agency, or even a co-worker) to trick victims into revealing sensitive information.

This information could include:

• Login credentials

• Credit card details

• Business financial data

• Personal identification numbers (PINs)

• Intellectual property

Phishing is a subset of social engineering — tactics that manipulate human psychology rather than hacking systems directly.

How Phishing Works: Step-by-Step

Kenima Cybersecurity’s CEO, Kessington Ekhaiyeme, explained it perfectly in our recent YouTube Short:

1. The bait – You receive an email or message that looks legitimate, often claiming to be from your bank, PayPal, or IT department.

2. Urgency – The message creates pressure, telling you there’s a problem with your account that needs immediate action.

3. The hook – You’re asked to click on a link to “fix” the issue.

4. The trap – The link leads to a fake website that looks real.

5. The catch – You enter your login details, which go directly to the attacker.

6. The damage – The hacker now has access to your accounts, data, and possibly your business systems.

Types of Phishing Attacks

Phishing comes in many forms. Here are the most common:

1. Email Phishing

The most widespread type, where attackers send fake emails that appear to come from trusted organizations.

2. Spear Phishing

A targeted form of phishing aimed at a specific person or business, often using personal information to make the scam more convincing.

3. Whaling (CEO Fraud)

Attackers impersonate top executives to trick employees into transferring funds or sharing sensitive information.

4. Smishing

Phishing via SMS messages, often claiming urgent payment issues or delivery problems.

5. Vishing

Phishing via phone calls, where attackers pose as bank representatives or IT staff.

6. Clone Phishing

Attackers replicate a legitimate email you’ve received before, replacing the link or attachment with a malicious one.

Real-World Examples

The 2016 FACC case cost the Austrian aerospace parts manufacturer $47 million when attackers posed as the company’s CEO in a phishing email ordering a fake acquisition payment.

According to Verizon’s Data Breach Investigations Report, 36% of all breaches involve phishing.

Why Small Businesses Are High-Value Targets

Small businesses often lack the robust security infrastructure of large enterprises, making them prime targets for phishing.

Many SMBs operate without:

• Dedicated cybersecurity staff

• Employee phishing training

• Advanced email filtering tools

Attackers know that a single successful phishing email can compromise an entire small business network.

How to Spot a Phishing Email

Look for these red flags:

• Generic greetings (“Dear Customer”)

• Urgent or threatening language (“Your account will be suspended”)

• Mismatched email addresses (hover over to check the sender)

• Links that don’t match the domain

• Unexpected attachments

• Poor grammar or unusual formatting

Preventing Phishing Attacks

1. Employee Training
Train staff regularly using phishing simulation tools.
See our cybersecurity training programs here.

2. Multi-Factor Authentication (MFA)
Adds a second layer of security beyond passwords.

3. Email Security Tools
Use advanced spam filters and anti-phishing gateways.

4. Incident Response Plan
Have a clear process in place for suspected phishing incidents.

5. Regular Security Audits
Book your free cyber risk audit to identify vulnerabilities.

Call-to-Action: Watch Our CEO’s Phishing Breakdown

Want to see phishing explained in under 60 seconds?
🎥 Watch our YouTube Short here

FAQ: Phishing Attacks

Q: Is phishing always done via email?
No. Phishing can occur via SMS (smishing), phone calls (vishing), and even social media messages.

Q: Can antivirus software stop phishing?
Not entirely. Antivirus may block malicious links, but human awareness is your first defense.

Q: How often should phishing training be done?
At least quarterly, with simulations to test readiness.

Q: What should I do if I click on a phishing link?
Disconnect from the network, change passwords, and contact your IT or cybersecurity provider immediately.

Conclusion

Phishing attacks are one of the most preventable cyber threats — but only if you know what to look for and take proactive steps.

At Kenima Cybersecurity, we help small businesses implement robust phishing defenses without the cost of a full in-house IT team.

✅ Get your free cyber risk audit today
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