Did you know that a huge percentage of all cyberattacks against businesses start with a single deceptive email? Cybercriminals often view small companies as easy targets because they think they lack the robust security of larger corporations. The reality is that your greatest defense is not a complex piece of software, but the informed vigilance of your team.
Understanding the current tricks that attackers use is the first step in building that defense. The world of phishing scams small business owners face is constantly changing, but the underlying psychology remains the same. This guide will break down the top five most common and effective scams that are hitting businesses right now.
What is Phishing and Why Does It Work?
Phishing is a type of cyberattack where criminals try to trick you into giving them sensitive information. They might want your passwords, company financial data, or access to your computer network. The attacker “fishes” for victims by sending out bait in the form of a deceptive email, text message, or phone call.
These scams work by pretending to be someone or something you trust, like your boss, your bank, or a well-known software company. The message is designed to create a sense of urgency or fear, pushing you to act quickly without thinking. This bypasses your logical brain and appeals directly to your instincts.
The 5 Most Common Phishing Scams to Watch For
While attackers are always coming up with new variations, most phishing scams small business teams encounter fall into a few common categories. These tactics are popular because they are highly effective at tricking busy employees. Knowing what to look for is the best way to keep your company safe.
By learning to recognize the patterns behind these attacks, you and your team can become a “human firewall.” A vigilant employee is often the last and most important line of defense. Here are the top five scams you need to be aware of this year.
### 1. Business Email Compromise (BEC)
This is one of the most financially damaging scams out there today. In a Business Email Compromise attack, a criminal impersonates a high-level executive at your company, like the CEO or CFO. The attacker will then send an urgent email to an employee in the finance department.
The email will typically ask the employee to make an immediate wire transfer to a new vendor or to pay an urgent invoice. The attacker stresses the need for secrecy and speed to prevent the employee from verifying the request through another channel. This simple trick has led to billions of dollars in losses for businesses of all sizes.
### 2. The Fake Invoice Scam
This scam is a clever variation of the BEC attack. Instead of impersonating your boss, the attacker pretends to be one of your regular suppliers or vendors. They will send you an invoice that looks completely legitimate, often using a real invoice template they have stolen previously.
The only thing that is different on the fake invoice is the bank account information for payment. The email will often include a plausible excuse for the change, such as “we have recently switched to a new banking partner.” If you pay the invoice, the money goes directly to the criminal’s account.
### 3. The Cloud Service “Problem” Scam
Many small businesses now rely on cloud services like Microsoft 365 or Google Workspace for their email and file storage. Attackers know this, and they use it to their advantage. This common scam starts with an email that looks like an official alert from Microsoft or Google.
The email will claim there is a problem with your account, such as a full mailbox or a suspicious login attempt. It will instruct you to click a link to log in and fix the issue immediately. The link takes you to a fake login page that looks identical to the real one, and when you enter your credentials, the attacker steals your password.
### 4. The HR and Payroll Scam
This type of scam preys on the trust that employees have in their company’s Human Resources department. An attacker will send an email that appears to come from HR. The message might ask employees to update their personal information for the company directory or to log into a new payroll system.
The goal is to steal employees’ personal information, like their social security numbers, which can then be used for identity theft. Another variation of this scam involves an employee receiving an email from a criminal pretending to be them, asking the payroll department to change their direct deposit information. This diverts the employee’s paycheck to the attacker’s bank account.
### 5. “Smishing” and “Vishing” Attacks
Phishing is not just limited to email anymore. As people have become more cautious about suspicious emails, criminals have started using other methods to reach their targets. This includes text messages, known as “smishing,” and voice phone calls, known as “vishing.”
A smishing attack might be a text message that appears to be from your bank or a delivery service, with a link to a malicious website. A vishing attack is often a phone call from someone pretending to be from tech support, who then tries to convince you to give them remote access to your computer. Because these attacks come through a different channel, they can often catch people off guard.
How to Protect Your Business
The good news is that there are simple, practical steps you can take to protect your business from these attacks. The best defense is a combination of good technology and well-trained employees.
Here are some of the most effective ways to protect your business:
- Encourage skepticism. Train your employees to be suspicious of any email that asks for sensitive information or creates a sense of urgency.
- Verify requests in person. For any request involving a money transfer or a change in payment information, require employees to verify it over the phone or in person using a known, trusted number.
- Use Multi-Factor Authentication (MFA). This is one of the most effective technical defenses. MFA requires a second form of verification, like a code sent to your phone, making it much harder for an attacker to access an account even if they steal a password.
- Hover before you click. Teach your team to always hover their mouse over any link in an email to see the actual web address it will take them to before they click it.
Conclusion: Awareness is Your Best Defense
The threat from phishing scams small business owners face is real and constantly changing. However, the core of the problem is not a technology failure; it is a human one. Attackers succeed by tricking good employees into making a mistake.
This means that the most effective way to protect your company is to invest in cybersecurity awareness training. When your team knows what to look for, they become your best line of defense. A well-informed employee is far less likely to fall for these common tricks.
At Nickel Idealtek Inc, we believe that a strong security posture is built on a foundation of technology and education. Our managed IT services include the IT security services and IT consulting needed to protect your systems, and we can help you build a culture of security awareness. For expert Small Business IT Support Houston, we are here to be your trusted partner.
What is the most suspicious phishing email you have ever received?
