What is Phishing? How Online Scams Trick You and How to Stay Safe

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When it comes to the question of “what is phishing,” it’s an appropriate one due to the world of online scams we see nowadays.

The Digital Scam Epidemic

Have you ever gotten a text message that looked a little off, or an email that seemed too good to be true? Maybe it claimed to be from your bank, saying there was a problem with your account, or from a famous company offering you a fantastic prize.

If so, you’ve likely encountered an online scam, and more specifically, a type of cyber-attack called phishing.

It feels like these tricky messages are everywhere, and honestly, they are. Cybercriminals are constantly trying to fool us, and they’re getting pretty good at it.

Over 3.4 billion phishing emails are sent every single day! That’s a huge number, and it shows just how common and persistent these digital threats are.

But don’t worry, by the end of this article, you’ll have a much clearer idea of what phishing is, how these online scams trick you, and most importantly, how you can protect yourself and your information.

Definition of Phishing (What is Phishing?)

So, what exactly is phishing? Imagine a scammer casting a fishing line into the internet, hoping to “fish” for your sensitive information. That’s pretty much what it is!

Phishing is a type of cyber-attack where criminals try to steal your money or your identity by tricking you into revealing personal details. This could be anything from your credit card numbers and bank account information to your usernames and passwords.

How do they do it?

They usually pretend to be someone you trust, like a well-known company, your bank, a government agency, or even a friend. They send you fake messages, often through email, but also text messages (which we call “smishing”), phone calls (“vishing”), or even direct messages on social media.

These messages often contain a link that looks legitimate but takes you to a fake website. This fake site is designed to look exactly like the real one, so you won’t suspect a thing when you type in your private information.

The term “phishing” itself has been around since the mid-1990s, coming from the idea of hackers “fishing for” your information through these fraudulent messages.

Why Phishing Works: The Psychology Behind the Attack

You might be wondering, “Why do so many people fall for these scams?” It’s a great question, and the answer lies in something called “social engineering.”

Phishing attacks don’t usually rely on breaking through complex computer security systems. Instead, they exploit human psychology. They play on our emotions and natural tendencies.

Think about it:

• Have you ever felt a sudden rush of panic when you get an email saying your account will be suspended if you don’t act immediately?

• Or maybe a message threatening financial loss or even your job if you don’t click a link right away?

That feeling of urgency or fear is exactly what cybercriminals want to create. They want to pressure you into making a quick decision without really thinking it through or checking if the message is legitimate.

This rush prevents us from pausing to consider if the demands are reasonable or if the sender is truly who they claim to be.

This human element is a big reason why phishing is such a persistent problem. Human error is involved in a significant number of data breaches, with the human element being a factor in 68% of all breaches, according to the 2024 Verizon Data Breach Investigations Report.

It only takes one person to fall for a phishing attempt to cause a serious data breach for a company.

What makes it even more appealing for criminals is that it’s easy, cheap, and highly effective for them. They can even buy “Phishing-as-a-service” subscriptions for as little as $250 a month, which gives them access to tons of ready-made phishing templates.

This low cost and high success rate make phishing a common “gateway attack”, meaning it’s often the first step criminals take to get into a system, which then allows them to launch even more damaging attacks like ransomware.

It’s a constant battle, but understanding these tricks is the first step to winning it. If you ever suspect you’ve encountered a scam, you can report it to the Federal Trade Commission (FTC).

They can help you figure out what to do next. 

Common Types of Phishing Attacks

When we talk about what phishing is, it’s important to know that it’s not just one single trick. Cybercriminals are pretty creative, and they use a whole toolbox of deceptive tactics to try and get your information.

They adapt their methods to different communication channels, always looking for the easiest way to fool you.

Let’s break down some of the most common types of phishing attacks you might encounter.

Email Phishing

This is probably the most common type of phishing, and it’s what most people think of when they hear the word “phishing.”

It’s all about fake emails. Scammers will send out thousands of these emails, pretending to be from companies you know and trust, like your bank, your internet provider, or even a popular online store.

These emails often have a sense of urgency, maybe saying there’s a problem with your account, or that you need to “verify” your details.

They’ll ask for sensitive information like your username, password, or bank account numbers. The trick is, if you click on a link in these emails, it won’t take you to the real website.

Instead, it will lead you to a fake website that looks exactly like the real one. You might not even notice the difference, and if you type in your information there, the scammers get it.

Always be on the lookout for generic greetings like “Dear Customer” instead of your name, or email addresses that look slightly off, even if the company logo seems legitimate.

Spear Phishing

Now, this is where phishing gets a lot more personal. While regular email phishing is like casting a wide net, spear phishing is like aiming a harpoon at a very specific target, you or your company.

These cybercriminals do their homework. They might find out your name, your job title, where you work, or even details about your projects from social media or public websites.

They use this personal information to craft an email that seems incredibly convincing, as if it’s truly from someone you know or from a legitimate part of your organization, like your boss or a colleague.

Because these messages are so tailored, they’re much harder to spot and can be very effective. Spear phishing is often the starting point for bigger, more damaging attacks, like ransomware, where criminals lock up your computer files and demand money to release them.

If you want to dive deeper into how to protect yourself from these highly personalized attacks, check out our guide on……

Smishing

“Smishing” is just a fancy word for phishing that happens through text messages, or SMS. You’ve probably received these.

They might pretend to be from your bank, saying there’s a suspicious transaction, or from a delivery company about a package that needs your attention.

Just like with email phishing, these messages will often include a link that, if clicked, takes you to a fake website designed to steal your personal information.

Sometimes, they’ll even pretend to be from big names like Google or Microsoft, making it even harder to tell if the message is real or fake.

My advice? If a text message asks you to click a link or give out personal info, be very, very careful.

Vishing

If smishing is about text messages, “vishing” is about voice. This is phishing that happens over the phone.

You might get a call from someone pretending to be from your bank, your internet service provider, or even a government agency.

They’ll try to scare you or pressure you into giving them financial information, like your credit card number, or trick you into visiting a fake website where they can steal your login details.

They might even use automated calls that prompt you to enter a PIN or other personal information.

Remember, legitimate companies won’t call you out of the blue and demand sensitive information or pressure you into immediate action.

If you feel threatened or pressured on a call, it’s always best to hang up and call the company back using a phone number you know is real, not one they give you.

Clone Phishing

This type of phishing is particularly sneaky because it involves creating an almost perfect copy of a legitimate email or website that you’ve received or visited before.

Imagine you got a real email from an online store about a recent purchase. A scammer might take that exact email, change the link to a malicious one, and then send it to you from a slightly altered email address, hoping you won’t notice the tiny difference.

The goal here is to trick you into thinking you’re interacting with a genuine, familiar communication.

When you click the link in this “cloned” email, it takes you to a fake website that looks identical to the real one. If you then try to log in or enter any information, the cybercriminals immediately capture your details, leading to potential identity theft or financial loss.

It’s a reminder that even if something looks familiar, a quick check of the sender’s email address and the link’s destination can save you a lot of trouble.

Now, let’s look at some real-world examples and then arm you with the knowledge to spot and avoid them.

Real-World Examples of Phishing

It’s one thing to talk about what phishing is in theory, but seeing how these online scams play out in real life can drive the point home.

These aren’t just abstract threats; they affect real people and organizations, sometimes with massive consequences.

One of the most impactful examples happened in February 2024 with the Change Healthcare Attack. This was a huge deal in the U.S. healthcare system.

The attackers got into Change Healthcare’s systems by using login details they stole through phishing. Once they were in, they caused massive disruptions to billing, insurance claims, and even pharmacy services across the country.

This attack affected over 100 million people and showed just how much damage a successful phishing scam can do, especially when it targets critical services.

Another notable case involved the Pepco Group in February 2024, where they lost about €15.5 million (that’s a lot of money!) due to a phishing attack on their Hungarian branch.

What made this one particularly scary is that the criminals used advanced AI tools to create super convincing phishing emails.

These emails mimicked the tone and style of real company communications so well that it was incredibly hard for people to tell they were fake. It just goes to show how sophisticated these online scams are becoming.

We’ve also seen phishing used as the first step in bigger attacks, like the Colonial Pipeline ransomware attack in 2021.

While the main attack was ransomware (where criminals lock up your computer files and demand money), the initial way they got in was through a compromised account that likely started with a phishing attempt.

This highlights that phishing isn’t just about stealing your password; it’s often the “key” that unlocks the door to much more severe cyber threats.

And it’s not just big companies. We’ve all probably seen or heard about scams like fake FedEx messages asking for payment for a package, or emails pretending to be from the IRS demanding overdue taxes.

There are even scams that offer a “free Starbucks Coffee Lovers box” or “gift” that are just trying to steal your personal and financial information.

These examples, big and small, show us that phishing is a constant threat, always adapting to new ways to trick us.

Red Flags: How to Spot a Phishing Attempt

Now that we’ve seen some examples, let’s talk about how you can become a pro at spotting these online scams.

Cybercriminals are always changing their tricks, but there are some common “red flags” that pop up again and again. Think of these as warning signs that something isn’t right.

Here’s what I always tell my friends to look out for:

• Urgent Calls to Action or Threats: This is a classic trick. Phishing messages often try to panic you into acting fast. They might say your account will be suspended, you’ll lose money, or you’ll miss out on a great deal if you don’t click a link or respond immediately. They want you to react without thinking. If a message tries to scare or rush you, that’s a huge red flag.

• Generic Greetings: Does the email say “Dear Valued Customer” or “Dear Account Holder” instead of your actual name? Legitimate companies that you have an account with usually know your name and will use it. A generic greeting is a strong sign it’s a scam.

• Mismatched Email Addresses and Links: This is a big one. Even if an email looks like it’s from a company you know, check the sender’s email address. Is it microsoftsupport.ru instead of microsoft.com? Or [email protected] instead of paypal.com?
  • Scammers often use addresses that are slightly off or from a completely different domain. The same goes for links: hover your mouse over any link (don’t click!) and look at the actual web address that pops up. If it doesn’t match the company’s real website, it’s a phishing link. Also, be aware that about 80% of phishing websites now use “HTTPS” (the little padlock icon), so don’t rely on that alone to tell if a site is safe.

• Spelling and Grammar Mistakes: Professional companies usually have people who check their messages carefully. If an email or text is full of typos, strange phrasing, or bad grammar, it’s a strong indicator of a scam. Sometimes, these errors are even put there on purpose to try and get past spam filters or to target less careful people.

• Unexpected Attachments or Requests for Sensitive Info: Never open an attachment or click a link from a message you weren’t expecting, especially if it’s asking for personal details. Legitimate businesses will never ask for your credit card number, Social Security number, or password via email or text message.⁶ If they do, it’s a scam. Malicious links are four times more likely to reach users than harmful attachments in phishing emails.

• Too-Good-To-Be-True Deals: If you see an offer that seems unbelievably good, like a brand-new, expensive item for 90% off, it’s probably a scam. Scammers use these enticing offers to lure you into clicking on malicious links.

Remember, even though Google blocks 100 million phishing emails every single day, some still get through. So, your awareness is your best defense!

How to Protect Yourself from Phishing

Knowing what phishing is and how to spot it is half the battle. The other half is taking active steps to protect yourself. Think of it like building a strong shield around your personal information.

Here are some practical steps I recommend to everyone:

• Use Strong Security Software and Keep It Updated: Make sure you have good antivirus and anti-malware software installed on your computer and phone. The most important part? Set it to update automatically. These updates are like getting new armor for your devices, protecting you against the latest online scams and threats.

• Turn on Multi-Factor Authentication (MFA): This is one of the best defenses you can have. MFA means that to log into an account, you need more than just a password. It might ask for a code sent to your phone, a fingerprint scan, or a code from a special app. Even if a scammer somehow gets your password, they can’t get into your account without that second piece of information. It makes it much, much harder for them.

• Back Up Your Important Data: Regularly copy your important files from your computer and phone to an external hard drive or a cloud storage service like Google Drive or Dropbox. This way, if you ever fall victim to a phishing attack that leads to data loss or a ransomware infection, you’ll still have your precious photos, documents, and other files safe and sound.

• Be Skeptical and Verify Directly: If you get a suspicious message, don’t click any links or call any numbers provided in that message. Instead, if you think it might be legitimate, contact the company directly using a phone number or website you know is real (like from their official website or a statement you received in the mail). This simple step can save you from a lot of trouble.

• Think Before You Click: This might sound obvious, but it’s the golden rule. Before you click on any link or open any attachment, pause. Look for those red flags we just talked about. If something feels off, trust your gut. It’s always better to be safe than sorry.

Phishing vs. Other Cyber Threats

Sometimes, people get confused about what phishing is compared to other cyber threats like malware or ransomware. It’s helpful to think of phishing as the delivery method or the first step in many cyberattacks.

Imagine a criminal wants to break into your house. They could try to pick the lock (that’s like a technical vulnerability), or they could trick you into opening the door for them. Phishing is that trick.

It’s a social engineering tactic that manipulates you into doing something that helps the criminal, like giving them your login details or downloading harmful software.

Once they have your login details (through credential phishing) or you’ve downloaded malware (malicious software), that’s when other threats come into play:

• Malware: This is software designed to harm your computer or steal your data. A phishing email might trick you into downloading a malicious attachment that installs malware on your device.

• Ransomware: This is a type of malware that locks up your files or your entire computer and demands a payment (ransom) to unlock them. Phishing is a very common way for ransomware to get onto someone’s system; in fact, phishing causes 54% of ransomware infections.

• Identity Theft: If a phishing scam successfully gets your personal information, like your Social Security number or bank details, criminals can use that to steal your identity, open new accounts in your name, or make fraudulent purchases.

So, while phishing itself is a deceptive message, it’s often the crucial first step that leads to these other, more damaging cyber threats. That’s why understanding and defending against phishing is so incredibly important.

Now, let’s look at the different disguises these attacks wear. It’s like learning to recognize the different types of bait a scammer might use.

What Makes Phishing So Effective?

We’ve touched on this a bit already, but let’s really dig into why these online scams are so successful. It’s not just about clever tech; it’s about understanding human nature.

First off, phishing attacks don’t usually try to break through your computer’s security systems. Instead, they focus on tricking you. This is called “social engineering,” and it’s incredibly powerful.

Scammers create a strong sense of urgency or fear in their messages. They might threaten to close your account, say you’ll lose money, or even imply you could lose your job if you don’t act immediately.

This pressure is designed to make you panic and click without thinking, stopping you from taking a moment to consider if the message is real or fake.

Another reason phishing works so well is that it’s surprisingly easy and cheap for criminals to carry out, but it can be incredibly effective.

Think about it: they can buy “Phishing-as-a-service” subscriptions for as little as $250 a month, which gives them access to tons of ready-made scam templates.

This low cost means more criminals can get into the game, and they can send out billions of these emails every day, hoping just a small percentage of people fall for them.

It’s also a common “gateway attack.” This means phishing is often the first step criminals take to get into a system, which then allows them to launch much more damaging attacks like ransomware or to steal valuable credentials.

The fact that 90% of targeted cyberattacks start with phishing emails shows just how often it’s the initial point of entry for bad actors.

And let’s be honest, we’re all busy and sometimes distracted. Studies show that people can click on a phishing link in as little as 21 seconds and submit sensitive data in 28 seconds.

If you’re working from home, distractions can make you even more vulnerable; nearly half (47%) of employees who fell for a scam while working remotely blamed distraction.

This human element is a huge factor, with human error accounting for 68% of all data breaches. It only takes one person to make a mistake for a whole organization to be at risk.

How Do Phishing Attacks Bypass Spam Filters?

You might think, “Don’t my email and text message apps have filters to catch these scams?” And you’d be right, they do!

Google, for example, blocks 100 million phishing emails every single day. But unfortunately, some still get through, and there are several reasons why these online scams can slip past our defenses.

Cybercriminals are constantly trying to outsmart these filters. They use clever tricks to make their messages look legitimate and avoid detection.

For instance, they might use slightly different subject lines or sending addresses that are just varied enough to confuse the filters, but still look real to you.

More than half (55%) of phishing emails use special “obfuscation techniques” to hide their true nature from security systems.

A big challenge now is the rise of AI. Criminals are using artificial intelligence tools to create incredibly sophisticated phishing messages.

These AI-generated emails can mimic your writing style, use language patterns that sound just like someone you know, and even include personalized details that make them seem incredibly legitimate.

This makes it much harder for traditional filters to tell the difference between a real email and an AI-crafted scam. AI detectors struggle to tell the difference between chatbot-written and human-written phishing emails in about 74% of cases.

Even advanced security systems like Secure Email Gateways (SEGs) are struggling. In 2023, over 1.5 million malicious emails managed to bypass SEGs, which was a huge increase of 104.5% from the previous year.

This shows that the bad guys are getting better at finding ways around our automated defenses. Sometimes, scammers even deliberately include spelling or grammar errors, not because they’re bad at writing, but because these errors can sometimes help them evade spam filters.

It’s a constant cat-and-mouse game between the scammers and the security systems.

How Much Damage Can a Phishing Attack Cause?

The impact of a successful phishing attack can be devastating, both for individuals and for businesses. It’s not just about losing a few dollars; the costs can quickly add up to millions.

For individuals, falling victim to a phishing scam can lead to serious problems like malware infections on your devices, identity theft, and the loss of important personal data.

Imagine your bank account being emptied or your personal information being used to open new credit cards in your name; that’s the kind of damage we’re talking about.

For businesses, the financial hit is even more severe. The average cost of a data breach caused by a phishing attack is estimated to be a staggering $4.91 million.

This number jumped by almost 10% from 2023 to 2024, showing that the problem is only getting worse. Businesses are losing an estimated $17,700 every single minute due to phishing attacks. That’s a constant drain on resources!

One particularly damaging type of phishing is called Business Email Compromise (BEC), where criminals impersonate executives to trick employees into sending money or sensitive information.

A shocking 64% of businesses reported facing BEC attacks in 2024, with an average loss of $150,000 per incident. Overall, losses from BEC attacks have reached a record high of $2.9 billion.

Phishing is also a major cause of other cyber incidents. It accounted for 36% of all U.S. data breaches in 2023, and 9 out of 10 data breaches that year started with phishing attacks targeting employees.

It’s also the leading cause of ransomware infections, responsible for 54% of them.

The longer it takes to detect and contain a breach, the more expensive it gets. There’s a $1.2 million difference in cost between breaches that are found and fixed quickly (within 200 days) and those that linger.

This really highlights how important it is to respond fast if you suspect a phishing attack.

How is Phishing Evolving with AI and Automation?

The world of cybercrime is always changing, and right now, artificial intelligence (AI) and automation are supercharging phishing attacks, making them more dangerous than ever.

Since AI tools like ChatGPT became widely available in 2022, the sheer number of phishing attacks has exploded by an incredible 4,151%.

This means criminals can create more convincing scams, faster and cheaper than ever before.

AI allows them to craft emails that sound incredibly natural, mimicking your writing style or the tone of someone you know, and even adding personalized details that make the scams much harder to spot.

We’re also seeing new types of AI-driven attacks:

• Deepfake Impersonations: Imagine getting a video call or a voice message from your boss, but it’s actually an AI-generated “deepfake” trying to trick you. These deepfake impersonations have increased by 15% in the last year, often targeting high-level employees in finance and HR.

• QR Code Phishing (Quishing): This is a growing threat where scammers use malicious QR codes to trick you. These codes might be on fake flyers, business cards, or even public posters. When you scan them with your phone, they take you to a fake website designed to steal your information. Quishing attacks increased by 25% year-over-year, and top executives are targeted by these scams 42 times more often than average employees.

• Multi-Channel Attacks: Phishing isn’t just about email anymore. About 40% of phishing campaigns now spread across different platforms like Slack, Microsoft Teams, and various social media sites. This means you need to be just as vigilant on these platforms as you are with your email.

• HTTPS Phishing: A tricky new development is that about 80% of phishing websites now use “HTTPS” (the secure padlock icon in your browser). This makes them look legitimate, even though they’re fake, because people often associate HTTPS with safety.

The scary part is that even with all the new technology, AI detectors are still struggling to keep up. They can’t tell the difference between AI-written and human-written phishing emails in about three out of four cases.

This means our automated defenses are playing catch-up, making your personal awareness and caution more important than ever.

Final Thoughts: Stay Informed, Stay Safe

I know this might seem like a lot to remember, but my goal here is to empower you. The world of online scams, especially what phishing is can feel overwhelming, but you don’t have to be a cybersecurity expert to protect yourself. It’s about building good habits and staying aware.

Think of me as your ongoing resource. The more you know about these online scams and the tricks cybercriminals use, the better equipped you’ll be to spot them and keep your personal information safe.

Always remember to pause, look for those red flags, and verify anything suspicious. Your vigilance is your strongest defense in this digital world. Stay informed, stay curious, and most importantly, stay safe!