Spear-phishing is no weekend pastime⎯it’s a sophisticated cybercrime that generates an average $4.76 million dollars per breach. By targeting specific individuals with highly personalized messages, these attackers exploit human error and outdated security measures to steal sensitive information. In this article, we’ll explore the economics of spear-phishing, why these attacks succeed, and how you can protect yourself and your organization.
Breaking Down the Numbers
To understand the financial impact of spear-phishing, let’s create a scenario. Imagine targeting 100,000 accountants in the U.S., a list that could be compiled from publicly available sources. If just 1% fall victim, each losing $1,000, attackers would run away with $1 million. In real-world cases, those numbers can skyrocket.
Between 2013 and 2015, cybercriminals stole over $100 million from tech giants Facebook and Google by sending fake invoices from what seemed to be one of their suppliers. These emails would be sent to employees who as CNBC states, “regularly conducted multimillion-dollar transactions.” A little bit of social engineering and careful planning can fool even the best in any industry.
This example illustrates the alarming potential of spear-phishing attacks, even against well-staffed and knowledgeable organizations. These attacks rely on human error and social engineering, anyone from an employee to a CEO is a potential target.
Why These Attacks Work So Well
Why spear-phishing is so effective:
- Highly Personalized: These attacks will generally be done by people who have done their homework. They know who you are, your position in your company, your favorite golf spot, and maybe even your dog’s name. Okay not that much, but they do leverage as much information as possible from sources such as social media or public records to craft these personal attacks. A lot of personal information you may think no one knows is available somewhere online if you have been in a data breach. That may include your phone number, name, address, and other information that could be out there.
- High-Quality Forgeries: Attackers use real-looking email addresses, authentic logos, or cloned websites to appear legitimate. Phishing-as-a-Service (PhaaS) platforms are tools these attackers use to craft these attacks. They will do everything in their power to make you believe they’re legit. As technology is advancing, we may even see the rise of deepfake audio or video.
- Human Error: Many employees and people in general are unaware of common phishing tactics, which makes them prone to clicking suspicious links or downloading malicious attachments. Clicking just one link can lead to malware, ransomware, or spyware being downloaded on a device. Even a tech-savvy individual can be caught off guard if they’re being rushed or stressed at work, all it takes is one misstep.
How You Can Protect Yourself and Your Company
Spear-phishing is a genuinely scary thing to think about. Usually, by the time you know you’re being phished, it’s already too late. However, there are some ways you can protect yourself as an individual or as a company.
For Individuals
- Securing Personal Data Online: Try to limit the amount of personal information you share on social media or public platforms. You’d be surprised how much you can get to know about someone based on their social media. Privacy settings can help protect your sensitive information.
- Educating Yourself on Tactics: There are so many free resources online to educate yourself on these spear-phishing tactics. Our favorite is on the Kirkham IronTech YouTube channel! Give it a watch to educate yourself on what to look for and how to avoid it.
- Keep Software and Systems Updated: Many people neglect updating their software, a lot of cyber criminals like to exploit vulnerabilities of old software that people may still have on their devices. Regularly updating software and devices is a strong way to protect against vulnerabilities and close potential entry points.
For Businesses:
- Implementing Cybersecurity Awareness Training: Mandatory training can significantly reduce the risk of a spear-phishing attack. Teaching people beforehand is one of the best things you can do, not waiting till after an attack has already happened. Make sure your team is aware of common tactics and know what warning signs to look out for. Implementing a proper disaster recovery plan also greatly decreases the damage done by attackers.
- Backup Data Regularly: Maintain multiple, secure data backups. This minimizes the impact of malware, ransomware, or other cyberattacks that you may see in a spear-phishing attack. Doing this can greatly minimize the cost in the event of an attack.
- Hire a Managed IT service: Partnering with a professional IT service like Kirkham IronTech ensures tailored solutions and proactive monitoring to counter-spear phishing attacks effectively. We at Kirkham IronTech are proud to be a top 250 MSSP, with our expertise we can specialize in providing customized cybersecurity solutions for businesses of all sizes.
What We Can Learn from Spear-Phishing
Spear-phishing is a very lucrative business for cybercriminals. With the average breach generating millions of dollars, these kinds of attacks aren’t going away anytime soon. Just as cybersecurity attacks evolve, we as individuals need to evolve to learn how to combat these attacks. While personal cybersecurity practices are essential, they may not be enough for more sophisticated attacks. Partnering with trusted experts can greatly increase your chances of not being a victim of an attack.
The criminals attacking you are experts in their field, so why not fight back with experts that you trust? That’s where we at Kirkham IronTech come into play, we prioritize security first. Using a best-of-breed solution, we make sure every client we cover is cared for extensively, crafting unique solutions for each one.
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Tom Kirkham brings more than three decades of software design, network administration, and cybersecurity knowledge to organizations around the country. During his career, Tom has received multiple software design awards and founded other acclaimed technology businesses.
