What is Phishing? How it Works and Tips to Protect Yourself 

Key takeaways: 

• Phishing is a cyberattack that pretends to be someone you trust to take your private information. 
• Falling for phishing scams can risk your money, security, privacy, identity and reputation. 
• There are plenty of ways to detect phishing, including spotting typos, checking links, and being wary of urgent messages or strange email addresses.  

Every day, we rely on the internet for banking, shopping, work, and other services for convenience. But with this comes with risk—phishing attacks are rising fast, targeting millions of people worldwide. Statista’s data shows over 989,000 unique phishing attacks were detected globally in the 4th quarter of 2024. 

You may have heard of phishing before, but do you really know what it is—and how to spot it before it’s too late?  

In this guide, we’ll break down phishing in simple terms, explore the common types of attacks, and share easy steps you can take to stay safe. With this knowledge, you’ll be ready to browse, shop, and communicate online with confidence. 

What is phishing 

Phishing is a type of cyberattack where someone pretends to be a trustworthy person or institution to steal your information. The term “phishing” comes from “fishing” for information by setting bait. In this case, the bait is a fake message or suspicious site that’s actually a trap. 

These messages might look like they’re from your bank, your email provider, or even your favorite online store. They send you a message that looks real but is designed to trick you into clicking a link to a fake website or downloading a harmful attachment. Then, the scammer can steal your personal and financial information or infect your device with malware. 

Whether it comes through email, texts (SMS), messages on social media, or even phone calls, the goal is the same: to trick you into revealing information like login credentials, credit card numbers, or social security numbers. 

How does phishing work? 

Phishing primarily works by tricking your mind. It’s a form of social engineering, which means the attacker is relying on human behavior, like trust, fear, or urgency, to succeed. 

So that you’ll act fast without thinking, most scams are carefully designed to look urgent or important. The message might say your account is locked, you missed a payment, or someone is trying to log into your email. 

Here’s how a typical phishing attack goes: 

1. The bait. You get a message that looks like it’s from a trusted source, like your bank or a company you use. 
2. The hook. The message asks you to click a link, log into an account, or open an attachment. 
3. The catch. Once you take the bait, your information goes to the scammer, not the real company. They can now use your data or install harmful software on your device. 

Some phishing campaigns are highly targeted. These are harder to detect because they use your name or information to look more convincing. 

Types of phishing attacks 

Phishing comes in many forms, and understanding the differences can help you better spot them. 

Here are the most common types of phishing attacks explained in detail: 

Email phishing 

This is the most widespread and recognizable type. You receive an email that appears to be from a trusted company—like your bank, a streaming service, or an online store. The message often includes urgent language like “Your account has been compromised” and encourages you to click a link that takes you to a fake site or open an attachment designed to steal your login credentials. 

Example: An email from “Netflix” says your payment failed and asks you to log in to update your billing info. But the link leads to a fake login page that will steal your username and password. 

Spear phishing 

Spear phishing attacks are more targeted. The malicious actors do their homework and use personal details like your name, job title, or even your work connections to craft a convincing message. It’s often used against specific individuals or small groups. 

Example: You get an email that looks like it’s from your company’s IT team, using your name and referencing a recent company meeting. It asks you to reset your password for security purposes. 

Whaling 

Whaling is spear phishing taken to the next level—directed at high-ranking executives or important stakeholders in a company. Because these individuals have access to sensitive data and large funds, they’re prime targets. 

Example: A company’s CFO receives an urgent email that seems to come from the CEO, asking to approve a large wire transfer for a new partner deal. 

Smishing (SMS phishing) 

Instead of email, smishing happens via SMS or text messages. You might get a message that looks like it’s from your bank, a delivery service, or a government agency. The message usually includes a link or asks for personal info. 

Example: A text that claims to be from FedEx asks you to click a link to track a package—but the link leads to a malicious website. 

Vishing (voice phishing) 

In vishing scams, you receive a phone call from someone pretending to be from tech support, your bank, or even the IRS. They use urgency and fear to pressure you to reveal sensitive information. 

Example: Someone calls saying there’s a problem with your computer or tax return and asks you to confirm your identity by providing account numbers or passwords. 

Clone phishing 

Here, the attacker takes a real email you’ve previously received, clones it, and replaces a safe link or attachment with a malicious one. Because the email looks identical to something you’ve already seen, it’s much easier to fall for. 

Example: You get what looks like a forwarded email from a coworker with a document attached—but the document is actually malware. 

Each phishing method uses different techniques to catch you off guard, but the end goal is always the same: to trick you into handing over sensitive information. When in doubt, don’t click and don’t give any important information. Instead, contact the company directly through a phone number or website you know is legitimate. 

7 most common signs of phishing 

Knowing what to look for can keep you safe. Here are 7 common signs of a phishing attempt: 

1. Bad spelling and grammar 

Professional companies take time to proofread their messages. If you notice lots of typos, poor grammar, or awkward wording, it could be a sign that the email is fake. Phishing emails often come from non-native speakers or automated scripts, so the language can feel “off.” 

2. Weird email addresses 

The sender’s email address might look similar to a real one, but with slight changes. For example, instead of [email protected], it might say support@paypall.com. Always double-check the domain name to see if it matches the legitimate source. 

3. Urgent language 

Messages that scare you into acting quickly—like “Your account will be suspended” or “Payment overdue”—are trying to get you to click without thinking. Phishers use fear to pressure people into making mistakes. 

4. Suspicious links 

Hover your mouse over any link without clicking it to see where it really goes. If the link address doesn’t match the company’s actual website, it’s probably a scam. Some links may use random strings of numbers or unfamiliar domains to hide their true destination. 

5. Requests for personal info 

Legitimate companies will never ask for information like your password, Social Security number, or credit card details through email or text. If someone does, that’s a red flag. 

6. Unexpected attachments 

Don’t open files you weren’t expecting, especially if they come from unknown senders. These could contain viruses or malware that infect your device as soon as you open them. 

7. Generic greetings 

If a message starts with “Dear Customer” or “Hello User” instead of using your real name, be cautious. Real companies usually personalize their messages. A lack of personalization is a clue that the email may have been sent to thousands of people at once. 

Let’s take a look at this sample email: 

**********

**********

This email shows several red flags that point to phishing.  

First, the grammar and spelling are noticeably poor, with errors like “suspend,” “immediatelly,” and “closur.” These mistakes are common in scam emails. The sender’s email address looks close to PayPal’s but is slightly off, using a fake domain—“paypall-secure.com”—which is a common trick.  

Next, the message uses urgent language, warning that your account will be suspended or permanently closed if you don’t act fast. That pressure is designed to scare you into clicking without thinking.  

The link they provide looks official at first glance, but it leads to a suspicious web address that’s nothing like PayPal’s real site. They also ask for your login credentials, which is a  clear sign of phishing —real companies won’t request personal information through email.  

If you look closer, there’s an unexpected attachment that could contain malware. And finally, the email greets you as “Dear Customer” instead of using your real name, showing it’s not personalized and was likely sent to thousands of people. Together, all of these signs clearly indicate that this is a phishing attempt. 

Top risks of getting phished 

Falling for a phishing scam can have serious consequences for your wallet, identity, privacy, and even your employer. Let’s take a closer look at the most common risks: 

• Identity theft. Phishing attacks often target your personal information. With this data, scammers can pretend to be you and open new bank accounts, apply for loans, or make big purchases. Victims of identity theft often spend months or even years trying to clear their names and recover their credit. 
• Money loss. If you hand over your banking or credit card details, scammers can quickly make unauthorized transactions. They might transfer funds out of your account, use your card for online shopping, or even take out loans in your name. Sometimes, people don’t even realize they’ve been scammed until their bank statements show suspicious charges. 
• Privacy invasion. Phishing doesn’t always aim for your money—sometimes it’s after your private data. If a scammer gets access to your email, they could read personal conversations, view private photos, or even reset your other online accounts. It’s more than just embarrassing—it can lead to more targeted scams in the future. 
• Business damage. For companies, one successful phishing attack can spell disaster. If an employee unknowingly clicks on a malicious link, hackers might gain access to sensitive client data, trade secrets, or internal systems. This can result in lawsuits, regulatory penalties, and massive damage to the company’s reputation. Customers may lose trust, and the financial impact can be devastating. 
• Malware infections. Some phishing emails carry malicious attachments or links that install malware on your device. This software can spy on your activity, lock your files, or even use your system as a gateway to attack others. Malware often works quietly in the background, causing damage before you realize something is wrong. 

How to protect your business from phishing 

Businesses are frequent targets because they store valuable information, handle sensitive transactions, and often have multiple employees—making them an attractive focus for scammers. 

Here’s how companies, especially small and mid-sized ones, can protect themselves from phishing attacks: 

1. Educate your team 

The first line of defense is your people. Remember, it’s all social engineering and relies on human actions to work. If your personnel know how to spot the threats, that’s one layer of protection from possible scams. 

Run regular training sessions that teach employees how to recognize and report phishing attempts. Show them real-world examples of scam emails and simulate fake ones to test their awareness. For instance, you could send out a mock email that looks like a delivery notification—then track who clicked. These training exercises help staff build a habit of thinking before they click. 

2. Use security software 

If computers can filter the obvious phishing attempts, humans have fewer emails to detect and have smaller room for error. 

Invest in strong email filters and anti-phishing software that can detect suspicious messages before they reach inboxes. Firewalls and antivirus tools can help block malware that might be hidden in links or attachments. For example, many email systems can flag messages that come from domains known for phishing or spam. 

3. Enable two-factor authentication (2FA) 

2FA adds an extra layer of protection beyond just a username and password. Even if an employee falls for a phishing scam and gives up their login info, the attacker would still need the second authentication factor—usually a code sent to the user’s phone or an authentication app. This can stop a breach in its tracks. 

4. Keep systems updated 

Regularly updating software ensures that any security vulnerabilities are patched quickly. Hackers often exploit known flaws in outdated systems. Make it a policy to update operating systems, antivirus software, and apps across all company devices. 

5. Back up your data 

Even with the best protection, things can go wrong. Having secure and regular backups means you can recover important data if your system is compromised. For example, in the event of a ransomware attack delivered through a phishing email, having backups means you can restore your data without paying the ransom. 

6. Run fake phishing simulations 

Simulated phishing campaigns help reinforce good habits. These are safe, controlled tests that look like real phishing emails but don’t actually harm anything. If an employee clicks on a link, you can redirect them to a training page that explains what they missed. 

Top industry targets of phishing 

Some industries are especially attractive to cybercriminals because of the sensitive data they hold and the systems they rely on. Here’s a closer look at why these industries are frequent targets: 

• Financial services. Banks, credit unions, and investment firms deal directly with money, making them high-value targets for phishing. These attacks can give hackers access to customer bank accounts, internal financial systems, or employee credentials. Scammers often pose as financial institutions in phishing emails to trick users into giving up login details. One common tactic is sending fake alerts claiming “suspicious activity” on your account. 
• Healthcare. Hospitals, clinics, and insurance providers store massive amounts of personal and medical data. This includes Social Security numbers, billing info, and detailed health records. Hackers can sell this data on the black market or use it for identity theft. In some cases, ransomware attacks have shut down entire hospital systems, delaying care and putting patient safety at risk. 
• Retail and eCommerce. Online stores collect sensitive customer data, including credit card numbers, shipping addresses, and purchase histories. Phishing attacks may target employees to gain backend access or trick customers into entering their payment details on fake sites. During busy shopping seasons like the holidays, these industries see a spike in phishing attempts. 
• Education. Schools and universities manage student records, staff credentials, and research data. With thousands of users and often limited IT resources, educational institutions can be easy targets. Phishing scams may trick students or faculty into revealing passwords or downloading malware that compromises entire campus networks. 
• Government agencies. Public sector organizations hold sensitive personal data about citizens and manage critical infrastructure systems. Hackers may use phishing to access classified information or disrupt operations. For example, phishing emails have been used to breach election systems or impersonate law enforcement to obtain unauthorized access. 

But the truth is, every industry has something worth stealing. Cybercriminals see opportunities everywhere. That’s why cybersecurity awareness and phishing defenses are vital no matter what industry you’re in. 

AI and phishing 

AI is transforming the world of phishing—both for attackers and defenders. It gives cybercriminals new ways to deceive people, but it also equips security teams with smarter tools to stop these threats before they cause harm. 

How attackers use AI in phishing 

AI lets scammers create phishing messages that sound more convincing than ever. Since they’re using AI language tools to generate messages that mimic real natural tone and grammar, it’s harder for users to tell the difference between a real message and a fake one.  

Attackers can also use AI to scan social media profiles and company websites to tailor phishing attempts. This is especially common in spear phishing, where emails are personalized with names, job titles, and recent activity to build trust. 

Finally, some even use AI to create fake voices through deepfake technology, calling employees and pretending to be a CEO or IT support staff asking for sensitive credentials. 

How AI helps prevent phishing 

Fortunately, AI is also a powerful ally in defending against phishing: 

• Pattern detection. AI-based security software can analyze thousands of emails in real time, looking for patterns or red flags that humans might miss. For example, it can flag emails that use urgent or manipulative language, or ones that contain hidden malicious links. 
• Behavior monitoring. Machine learning models can also track user behavior and detect anomalies. If an employee suddenly starts logging in from unusual locations or accessing sensitive files they don’t normally use, AI systems can flag this as suspicious. 
• Email filtering. Email platforms like Gmail and Outlook are already using AI to sort out spam and phishing attempts, reducing the number that reach your inbox in the first place. These tools get smarter over time, learning from new threats and adapting to catch even sophisticated phishing schemes. 

It’s an ongoing battle—AI is making phishing attacks more advanced, but it’s also giving us better defenses. The key is to stay informed, use the tools available, and always think twice before clicking. 

Protect your private information 

Phishing won’t be going away soon, but with the right knowledge and habits, it’s one you can stay ahead of. Whether you’re an individual internet user or running a business, understanding how phishing works and knowing how to recognize the warning signs is your best defense. 

The good news is you don’t have to be a tech expert to stay safe. Just being a little cautious, using common sense, and relying on basic security tools can make a big difference. 

Technology continues to evolve, and phishing scams will too—but so will the tools to fight them. Network Solutions offers SSL certificates to encrypt sensitive information and Sitelock to keep threats at bay. These can add an extra layer of security that helps stop attacks before they even start. By staying alert and informed, you’re already ahead of most scammers. 

Frequently asked questions