What Is Phishing and How to Avoid Falling for It?

When it comes to cybercrimes and how to protect against them, you’ve probably heard the term “phishing.” But what exactly is phishing, and what dangers does it pose to a company seeking to establish a stronger presence in the digital world?

The term “phishing” combines the English word “fishing” with “phreak,” derived from “freak” or anomaly. The attack emerged around 1996 with the intent to steal accounts.

Cybersecurity has become a significant concern for many users who feel unprotected on the internet due to various threats.

This type of fraud has gained prominence due to the large number of attacks on companies of all sizes and sectors.

According to the “Fraud Report” published by Axur, phishing saw a significant increase during the second quarter of 2021, with an 81.8% rise. Experts predict that numbers may continue to grow during numerous year-end events and promotions.

So, keep reading to better understand what phishing is, its dangers, and how to avoid falling victim to this type of scam in the digital environment.

What Is Phishing?

Phishing is not a new term; it was created around 1996 by cybercriminals who were stealing AOL (America Online) accounts.

Over time, the fraud gained media attention and became more widely known. At that time, hacked accounts were already being used as currency in cybercrimes.

But what is phishing today? Is it used the same way it was years ago? Does it still pose a threat among cybercriminals?

Essentially, phishing is a technique used by criminals who send malicious messages that appear very legitimate to many people.

These messages serve as “bait” and are sent via email and other messaging tools, with the aim of accessing users' personal data, such as:

• Bank passwords
• Credit card details
• Bank transactions
• Personal information for fraud
• Access credentials
• And more

According to the Anti-Phishing Working Group, the average success rate of phishing scams is estimated to be around 5%. Although this might seem low, the fraud can cause significant disruptions in victims' lives, as well as substantial financial losses.

How Do Phishing Scams Work?

Now that you have a basic understanding of phishing, it’s important to know how these scams work to protect yourself effectively.

Phishers (as these fraudsters are known) often impersonate well-known institutions or entities that seem trustworthy, such as:

• Telephone and cable TV operators
• Banks
• Government agencies (especially tax authorities)
• Email providers
• Airlines
• Major retail chains
• Online stores
• And even police departments

Fraudsters typically use email as the primary communication method for their scams, but they may also use apps, websites, and even SMS messages designed to steal personal data, posing as employees of these well-known and trusted institutions.

In more sophisticated cases, merely opening the message is enough for the scam to be executed. In more common cases, the victim needs to click on a specific link in the message for the cybercriminal to capture the data.

Since the success rate is not very high, scammers send millions of messages daily to find inexperienced users who are unprepared for such attacks.

The Phishing Attack Stages

Like most cybercrimes, phishing is complex and involves several stages. In this case, there are six: planning, preparation, attack, collection, and fraud.

1. Planning: In the planning stage, cybercriminals select their target audience for the attacks and define the objective of their actions. They decide what type of fraud they intend to commit, whether it’s identity theft, transferring money to other accounts, or other fraud types.
2. Preparation: This stage involves preparing the materials that will serve as the “bait” for the victims. They craft the texts, messages, emails, and even websites, designs, and links used in the scam.
3. Attack: With the materials ready, the scammers send out the messages. This can be done via text messages, messaging apps, and especially email.
4. Collection: In this phase, the criminal collects the data obtained through clicks on the link and prepares the information for the final crime.
5. Fraud: The fraud stage is crucial as the cybercriminal uses the collected data to access accounts, steal money, create false identities, and commit other crimes facilitated by the victim’s information. Often, the data is sold to other criminals for financial gain.

What to Do After a Phishing Attack

First, it’s important to understand that it’s not advisable to try to negotiate or track down the criminals on your own. This approach offers no guarantee that you will recover your accounts or money.

The recommended actions are to file a police report to officially document the crime, and contact your phone and bank providers to block accounts, cards, and phone lines.

It’s also advisable to change the passwords for all your accounts and access points. This is important to document any unusual logins.

If the phishing attack resulted in malware on your computer or phone, install anti-malware software to remove viruses or seek technical support.

Even with these guidelines, if you still feel unsure or lost after the attack, seek advice from a cybersecurity expert.

How to Protect Yourself from Phishing

Understanding phishing is just as important as knowing how to prevent falling victim to this type of scam, which can cause significant problems for you or your company.

This risk can be mitigated by investing in your company’s security, especially now that LGPD (General Data Protection Law) is in effect.

It’s essential to establish security awareness within your team so that not only phishing but other cybercrimes stay far from your business’s reality.

Keep your operating system and software updated and look for programs with real-time protection.

One way to enhance security and prevention is through Bug Bounty programs—a reward system for finding bugs and security gaps.

Bug Bounty allows experts, also known as ethical hackers, to conduct continuous tests on your systems to find vulnerabilities that could jeopardize your business and users' protection.

Now that you know what phishing is and its dangers, and you’re interested in protecting your business, users, and clients from these scams, it’s time to explore BugHunt: Brazil’s first Bug Bounty platform!

Click here to learn more about how we can help secure your company.