Phishing attacks represent one of the biggest cyber threats for businesses of all sizes and segments. However, small and medium-sized businesses (SMBs) are particularly vulnerable to this cyber threat. This is primarily due to a lack of cybersecurity resources and expertise, making these businesses easy targets for criminals.
Phishing attacks involve psychological manipulation to obtain confidential information, causing immense harm to SMEs. The result is often substantial financial and operational losses , hampering the organization's development and growth.
Phishing is a cyberattack strategy in which cybercriminals impersonate trustworthy entities to trick users into providing sensitive information such as credit card numbers, passwords, and personal data . Cybercriminals typically carry out this attack through emails, spoofed websites, and text messages, all designed to mimic legitimate services .
The rise of Phishing attacks
According to a survey conducted by Statista , despite the growth and popularity of messaging apps and platforms, email remains an essential part of online life. The number of email users reached 4.26 billion in 2022 and is expected to reach 4.73 billion by 2026. Although many users are aware of the dangers of unknown emails, according to a survey conducted in February 2019 , only 45% of users reported avoiding opening emails from unknown addresses, highlighting the need for awareness of the threat of phishing.
Therefore, because it's an attack that doesn't require large investments, the prevalence of phishing has increased exponentially, with millions of attacks recorded annually . Data from Kaspersky , released by IT Forum in August 2023, shows that Latin America recorded a total of 286 million phishing attempts in one year. In Brazil, 134 million attempts .
This data is concerning because, between 2021 and 2022, there was a 436% increase in phishing attempts , rising from 25 million to 134 million cases. According to the Anti-Phishing Working Group (APWG) , the number of reported phishing attacks reached a new high in 2023, with an average of over 1 million phishing attempts recorded monthly. In other words, small and medium-sized businesses were frequently targeted due to the perception that they are more vulnerable.
Small and medium-sized businesses face specific cybersecurity challenges. With limited budgets, many companies are unable to invest in reliable and robust security solutions, or even hire an IT specialist.
In this context, the financial impact is only part of the problem. SMEs also face a loss of customer trust , which can lead to customer disengagement after such an incident. The lack of resources to deal with the consequences further exacerbates the situation, leading many SMEs to close their doors.
Understanding Phishing Attacks
Effectively combating phishing attacks involves first understanding how they work. Phishing is a form of social engineering in which attackers exploit victims' trust to gain unauthorized access to sensitive information. These attacks can be generic or specific, targeting a specific position or employee within an organization.
Furthermore, phishing attacks can be generic , targeting a large number of people, or specific , targeting individuals in key positions within an organization, such as executives or IT professionals. Therefore, adopting protection tools and employee awareness is essential to prevent this type of approach.
Types of Phishing Attacks
There are several types of phishing attacks, each with its own characteristics and execution methods. As mentioned previously, spear phishing is a targeted attack in which the cybercriminal focuses on a specific victim. On the other hand, whaling is an attack similar to spear phishing, but targets high-ranking executives. The goal of this attack is to obtain critical corporate information or cause significant embezzlement.
Clone phishing is an attack in which a cybercriminal creates a replica of a legitimate message already sent to the victim, altering some details such as attachments or links. This allows the attacker to direct the victim to a malicious website, especially in cases where the victim is already familiar with the original content.
Among the different types of phishing attacks, spear phishing is particularly dangerous for SMEs. In this type of attack, criminals conduct detailed research on the victim before attacking, collecting data from social media, company websites, or public sources. Using this information, the cybercriminal can create extremely convincing content, increasing the likelihood of the attack's success.
Phishing mechanisms
Phishing attacks employ various mechanisms to deceive their victims, such as spoofed emails that appear to be from trusted sources . In these cases, cybercriminals disguise their messages to appear to be from banks, coworkers, or technology companies, including links to fake websites or malicious attachments.
Criminals can also conduct phishing attacks through text messages, social media, and phone calls. Regardless of the method used, the goal is always the same: to trick users into providing sensitive information or performing actions that compromise the company's security. Thus, the use of new technologies, such as artificial intelligence and deepfakes , has made attacks increasingly sophisticated and difficult to detect.
Impact of phishing attacks on SMEs
Phishing attacks have a devastating impact on small and medium-sized businesses , causing both financial and operational losses. Therefore, recovering from an attack can be slow and costly, also damaging a company's reputation.
Below, we will discuss in more detail the financial and operational impacts that can be caused by this type of attack.
Financial consequences
The financial impact of phishing attacks can be significant and cause immeasurable damage to businesses. SMEs can suffer substantial financial losses from embezzlement, payment fraud, and costs related to identity theft.
Furthermore, companies may also face regulatory fines for non-compliance with data security regulations, such as the General Data Protection Law (LGPD) . In many cases, the total cost of a phishing attack can be so high that it forces the company to close its doors permanently.
Beyond direct losses, phishing attacks generate substantial recovery costs. This includes hiring cybersecurity experts to mitigate damage, restore systems, and implement preventative measures to prevent future incidents. Due to the high cost of these actions, small businesses may not be able to complete all of these steps, resulting in a painful and prolonged recovery process .
Operational effects
In addition to financial losses, phishing attacks also cause serious operational impacts on SMEs. The first impact occurs when the attack disrupts services and operations, compromising or disabling company systems. This results in lost productivity , delays in service and product delivery, and even customer loss.
In addition to operational disruption, SMEs also face the loss of critical and confidential data. Information stolen during a phishing attack can include financial details, intellectual property, customer data, and more. Losing this information compromises the company's security and puts customer trust and market image at risk.
Preventive measures against phishing
While phishing attacks pose a significant and damaging threat, there are steps SMBs can take to protect their operations and reduce the risk of falling victim. Prevention involves a series of approaches that help companies protect themselves and avoid the damage caused by this cyber threat.
Employee training and awareness
training and awareness are the first line of defense against phishing attacks. SMEs need to invest in security awareness programs to help their employees recognize and avoid phishing emails, suspicious links, and other attack vectors.
In addition to theoretical training, it's essential to conduct phishing simulations to test employee readiness. These simulations assess the effectiveness of the training and identify areas of vulnerability that need to be strengthened. Implementing a security culture helps SMEs significantly reduce the risk of successful phishing attacks.
Implementation of security technologies
Complementing employee training involves implementing advanced security technologies to detect and prevent phishing attacks. Tools such as intrusion detection systems, email filters, and malware protection software are crucial for identifying and blocking phishing attempts before they cause significant damage.
Another very effective measure is the implementation of multi-factor authentication (MFA) . This system requires users to provide two or more identity verification methods to make unauthorized access more difficult, even if login credentials are compromised.
Examples of SMEs hit by phishing
While it's possible to understand the risks associated with phishing, visualizing the impacts through real-life examples is very enlightening. Several SMEs around the world have already suffered the devastating effects of phishing attacks, resulting in substantial financial losses and irreparable damage to their market reputation.
Recurrent cases and statistics
Data on the frequency and severity of phishing attacks is very worrying, especially in the context of SMEs. Studies indicate that one in three companies of this size has been the target of a phishing attack, resulting in significant financial losses.
"State of the Phish survey found that about eight in 10 Brazilian companies (78%) reported having suffered at least one successful email phishing attack approach in 2022. Of these companies, 23% suffered some financial impact.
The reach of this type of attack is limitless and often affects even large companies. For example, according to the APWG Phishing Activity Trends Report, Microsoft was the most targeted company , receiving 38% of global phishing attacks in the first quarter of 2023.
Furthermore, another study conducted by the monitoring firm Appgate revealed that phishing accounts for 61% of fraudulent activity neutralized by the company's security operations center. This data shows that phishing maintained its prevalence, which was already noted in 2023, in subsequent periods.
These data highlight the need for preventive measures in SMEs. While these attacks can be effective even in companies with a solid and robust cybersecurity strategy, the risk for smaller businesses is even greater. SMEs that don't invest in cybersecurity risk falling victim to these threats, with catastrophic consequences.
Combating the Phishing Threat with a Consolidated Strategy
Phishing attacks pose a growing threat to SMEs, with potentially devastating operational and financial consequences. Implementing regular training , employee awareness, and the use of security technologies are essential steps to protecting your data and networks.
By implementing proactive measures, SMEs can minimize the risk of these threats and protect their most valuable assets, as well as their market positioning. Therefore, it's crucial to adopt strategies that help protect this information and ensure security within an increasingly challenging digital landscape.
Rely on robust and reliable tools to keep your organization safe from these threats. Using smart, customizable technology resources can make all the difference in your security strategy.
