Understanding Phishing Scams: How They Work and How to Protect Yourself

Phishing is one of the most common types of cybercrime today. Whether it’s a fraudulent email, text message, or phone call, phishing scams attempt to trick you into providing sensitive personal or financial information. These attacks are not just nuisances—they can have serious consequences, including identity theft and financial loss.

In this article, we’ll dive into what phishing is, how it works, and what steps you can take to protect yourself—both personally and professionally.

What is Phishing?

Phishing is a form of cyberattack in which criminals impersonate legitimate organizations or individuals to deceive victims into revealing sensitive information, such as passwords, credit card numbers, or Social Security numbers. Scammers use various channels—emails, text messages, and even phone calls—to bait victims into sharing information that can lead to identity theft or financial fraud.

Phishing scams are often disguised as urgent requests or appealing offers, making them difficult to spot at first glance. They might appear to come from trusted sources like your bank, government agency, or even a friend. However, the goal is always the same: tricking you into taking action that compromises your security.

How Phishing Scams Work

Phishing attacks are often carried out in the following ways:

1. Fake Emails or Texts: Scammers send emails or texts that appear to be from a trusted organization. These messages often contain urgent language, such as claiming suspicious activity on your account or offering an irresistible deal. The scammer’s goal is to prompt you to click on a link or download an attachment that installs malware or leads you to a fake website designed to steal your credentials.
2. Spoofing: Scammers can spoof the email addresses of trusted companies, or even impersonate your friends or colleagues by using slight variations in email addresses or names. This tactic makes the message appear legitimate, increasing the chances you’ll fall for the scam.
3. Fake Invoices: Scammers often send fake invoices that appear to be from companies you do business with. These invoices may ask for payment via a link or request that you update your payment details. When you click the link, you’re redirected to a malicious site, or malware is installed on your device.
4. Malware and Ransomware: By clicking on an infected link or opening an attachment, you might inadvertently download harmful software, such as keyloggers or ransomware, which can steal your information or lock you out of your system until you pay a ransom.

How to Recognize a Phishing Attack

While phishing emails or messages can look convincing, there are key signs to watch for:

• Generic Greetings: Phishing emails often use general salutations like “Dear Customer” instead of addressing you by name.
• Urgency or Threats: Phishers frequently create a sense of urgency, such as claiming that your account has been compromised or that you must take immediate action to avoid a penalty.
• Suspicious Links or Attachments: Avoid clicking links or downloading attachments from unknown sources. Phishing emails often contain URLs that look similar to legitimate websites but have slight misspellings or unusual domain names.
• Grammatical Errors: Poor grammar and spelling mistakes are common in phishing messages. Reputable companies typically proofread their communications.

How to Protect Yourself from Phishing Attacks

While phishing scams are increasingly sophisticated, there are several steps you can take to protect yourself:

1. Use Security Software: Ensure your computer and mobile devices have up-to-date security software. Enable automatic updates to protect against new threats.
2. Enable Multi-Factor Authentication (MFA): Multi-factor authentication adds an extra layer of security by requiring you to verify your identity through a second method, such as a text message or authentication app.
3. Verify Requests: If you receive a suspicious email or message, don’t click on links or provide any information. Instead, contact the company directly using the official contact details on their website.
4. Don’t Share Sensitive Information: Never provide personal information like passwords or bank account numbers to anyone who contacts you unsolicited via email, text, or phone.
5. Regularly Back Up Your Data: Regular data backups can protect you in case of a ransomware attack or data loss.
6. Stay Informed: Stay current on the latest phishing tactics. Check resources like the Federal Trade Commission’s (FTC) Scam Alerts and phishing awareness websites regularly.

What to Do if You Suspect a Phishing Attack

If you suspect you’ve fallen for a phishing scam, act quickly:

1. Report It: Forward phishing emails to the Anti-Phishing Working Group at [email protected] and text phishing attempts to SPAM (7726). Report the incident to the Federal Trade Commission at ReportFraud.ftc.gov.
2. Change Your Passwords: If you’ve shared login details, change your passwords immediately and enable multi-factor authentication for extra protection.
3. Monitor Your Accounts: Monitor your bank statements, credit reports, and other accounts for any suspicious activity.
4. File a Report: If you suspect identity theft, visit IdentityTheft.gov for detailed steps on how to minimize the damage.

Business Phishing: How to Protect Your Organization

Phishing is not just a threat to individuals—businesses are frequent targets as well, often with devastating financial consequences. One particularly harmful form of business phishing is Business Email Compromise (BEC), which involves attackers gaining unauthorized access to a company’s email system to conduct fraudulent activities.

How BEC Works

In a typical BEC scam, attackers impersonate high-level executives, like CEOs or trusted vendors, by spoofing their email addresses or using slight variations. They might request wire transfers, payment updates, or confidential information from employees. The attacker could also implant malware to steal sensitive company data.

Common BEC scams include:

• Fake Invoice Payments: A scammer impersonates a supplier or vendor and sends a fake invoice with updated payment instructions, hoping the company will process the payment without verifying it.
• Impersonation of Leadership: A hacker might impersonate the CEO or CFO and request an urgent transfer of funds, often under the guise of confidentiality or an emergency.
• Malware Infiltration: Phishing emails containing malicious attachments or links can infect your company’s systems with malware, potentially compromising sensitive data or locking your systems until a ransom is paid. 

How to Protect Your Business from Phishing Attacks

1. Employee Training: Educate your employees about phishing, BEC, and other scams. Train them to recognize suspicious emails and verify requests before acting.
2. Implement Multi-Factor Authentication (MFA): Require MFA for all employees, especially those with access to sensitive information or financial systems.
3. Verify Payment Requests: Always verify requests for wire transfers, changes to payment instructions, or sensitive data via phone or other trusted methods.
4. Use Email Encryption: Encrypt emails containing sensitive business information to prevent unauthorized access.
5. Monitor Vendor Payments: Review vendor payment information regularly and confirm any changes by contacting the vendor directly using previously known contact information.
6. Set Up Dual Approvals: For financial transactions, implement a dual-control system where a second person reviews and confirms the legitimacy of the request.
7. Regular Security Audits: Conduct periodic security audits to ensure that your systems are secure and up to date.

Phishing scams continue to evolve, and both individuals and businesses are vulnerable. By staying vigilant, educating yourself, and using modern security tools, you can significantly reduce the risks associated with phishing. For businesses, taking proactive steps to secure email systems and financial transactions is crucial to preventing financial losses and protecting your reputation.

If you suspect your accounts have been compromised due to fraud, please contact Client Services immediately at 855.343.4070, Monday - Friday, 7:00 a.m. - 6:00 p.m. PT, and Saturday, 9:00 a.m. - 1:00 p.m. PT.

For more tools and tips, visit Pacific Premier Bank’s Cybersecurity Center.

The information expressed is being provided for informational and educational purposes only. It is not intended to provide specific advice or recommendations for any individual or business. Pacific Premier Bank does not provide tax, legal, or accounting advice, and the information contained herein should not be construed as such. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation or business, you should consult your own tax, legal, and accounting advisors before applying any recommendation.

Pacific Premier Bank will not text, email, or call you asking for your online banking password or one-time security code. Make sure you verify the person who has contacted you before acting on any request.