How Can Small Businesses Defend Against Social Engineering Phishing Attacks?

Summary: Social engineering hackers steal private data from businesses using fake emails, texts and websites. Putting robust business cyber security in place helps guard against social engineering phishing cyberattacks. Learn about the most common social engineering attacks and gain actionable strategies to safeguard your company’s hard-earned data.

SMBs are frequent targets of social engineering phishing attacks. Social engineering is “the use of psychological influence of people into performing actions or divulging confidential information,” basically tricking unsuspecting users into handing over funds, information or passwords. Why do hackers target small businesses? Because they are lucrative targets. Cybercriminals perceive small organizations as having weaker network cyber defenses than larger corporations with in-house security departments. With social engineering, they can exploit human psychology rather than technological vulnerabilities and manipulate employees (and business owners) into divulging sensitive information or granting unauthorized access.

How Does Social Engineering Phishing Work?

Social engineering phishing is a cyberattack where criminals manipulate individuals into revealing confidential information or performing actions that compromise security. These attacks often involve deceptive communication via email, phone calls, or other messaging platforms. For small businesses, understanding how these attacks work is the first step in building a strong defense.

What Are Common Types of Social Engineering Phishing Attacks?

Small businesses must be aware of the various forms of phishing attacks to use effective defenses:

• Spear Phishing Attacks – These are highly targeted attacks aimed at specific individuals (those who handle large amounts of money) or organizations. Cybercriminals research their targets to craft personalized messages that appear legitimate. Small businesses often fall prey to spear phishing attacks due to their smaller workforce and limited cybersecurity training.
• Whaling Phishing Attacks – These attacks target high-level executives or individuals with significant access to sensitive information. Cybercriminals exploit the authority and influence of these individuals to manipulate other employees into sharing confidential data (such as passwords) or transferring funds.
• Watering Hole Attacks – In this method, attackers compromise weak websites frequently visited by the target. When small business employees access these sites, malware is downloaded onto the target’s system, providing attackers access to sensitive information on the victim’s network.
• Pretexting Attacks – Pretexting attacks involve creating a fabricated scenario (or pretext) to gain a victim's trust. For example, an attacker may pose as an IT technician or vendor to trick employees into revealing passwords or other sensitive data. They may use urgency or fear tactics to trick the victim.

Q: What do cyberthieves count on when launching a social engineering pretexting attack?

A: That busy users will impulsively open emails and click on or download malicious links before ensuring they are from trusted sources.

Why Are Small Businesses Vulnerable to Social Engineering Attacks?

Small businesses face unique challenges that make them more susceptible to social engineering attacks, including:

• Limited Cybersecurity Resources – Small businesses often lack dedicated IT departments or sufficient resources to invest in advanced cybersecurity tools. Therefore, they are unaware of the affordable cyber defense solutions available to better protect their company’s network.
• Lack of Employee Training – Employees may not be adequately trained to recognize or respond to phishing attempts.
• Trusting Work Culture – Smaller organizations tend to have a more trusting and informal work culture, making employees more vulnerable to manipulation.

What Are the Key Indicators of Social Engineering Phishing?

Recognizing the signs of phishing attacks can help small businesses reduce the risk of an attack. Common red flags include:

• Unexpected Urgency – Messages that create a sense of urgency or panic to prompt immediate action
• Unusual Sender Information – Emails or calls from unfamiliar or slightly altered email addresses and phone numbers
• Suspicious Links and Attachments – Unsolicited emails with links or attachments that prompt downloads or requests for sensitive information
• Inconsistent Language – Poor grammar, spelling mistakes, or unusual phrasing that seems out of character

What are Social Engineering Defense Strategies for Small Businesses?

Implementing a multi-layered defense strategy can help companies protect against social engineering phishing attacks. Tactics include:

• Employee Security Awareness Training – Conduct regular training sessions to educate employees on identifying and responding to social phishing attempts, including spear phishing and whaling phishing attacks. Live virtual sessions work best. Avoid using dated software for training.
• Email Security Protocols – Implement advanced email filtering solutions to detect and block phishing emails. Marking emails as spam further helps filter emails.
• Multi-Factor Authentication (MFA) – Require MFA for all sensitive accounts to provide an additional layer of security. Provide this security feature for employees and make its use mandatory.
• Incident Response Plan – Develop a clear incident response plan to quickly address and mitigate the impact of phishing attacks. Test it during a simulated cyberattack drill. Cybersecurity events are chaotic, and you may not have access to contacts if their information is on the network. Having a detailed plan in place speeds recovery time.
• Routine Security Audits – Conduct periodic network security assessments to identify and address new vulnerabilities. Let your cybersecurity provider know of any changes to the network, such as new equipment, software or devices.

Case Study: Successful Cyber Defense Against Spear Phishing Attacks

A small marketing agency recently faced multiple spear phishing attacks targeting its HR department. By leveraging employee training and email filtering tools, the company identified and reported the attempts before any sensitive information was compromised. This case highlights the importance of proactive defense measures.

Q: Why are cyber security incident response plans necessary?

A: During a cyberattack, all employees must immediately know what steps must be taken and the roles they are mandated to play in its mitigation. This speeds response and recovery. Without a plan, chaos and confusion rule, data loss continues and recovery is delayed.

Can Businesses Rely on Strong Technology for Cybersecurity?

Technology is one layer of cyber defense. Professional assessments, proper configurations of hardware and software and employee training work together to create hardened network security. Technology can significantly enhance a small business's ability to defend against phishing attacks. Once social engineering risk assessments have identified vulnerabilities, several tech-enabled steps are needed to reduce risks:

• Email Filtering Systems – Advanced email security solutions can detect and block spear phishing attacks and whaling phishing attacks
• Endpoint Protection – Antivirus and anti-malware software can safeguard devices against watering hole attacks
• Secure Web Gateways – These gateways can prevent access to malicious websites, reducing the risk of watering hole attacks
• Antivirus Security Software – Software that includes live security operations center (SOC) monitoring can investigate alerts and anomalies that human experts review within minutes. (Avoid free software, which is insufficient to protect network data.)

What are Best Practices for Social Engineering Attack Defense?

When creating a robust defense against socially engineered phishing attacks, small businesses should implement the following cyber security best practices:

• Encourage a Culture of Cybersecurity – Promote open communication where employees feel comfortable reporting suspicious activities. Avoid shaming.
• Regularly Update Software – Keep all software and systems updated to patch security vulnerabilities. Hackers easily exploit known software vulnerabilities.
• Limit Access to Sensitive Information – Restrict sensitive data access to only those who need it to do their jobs.
• Verify Identities – Encourage employees to verify identities through direct communication, especially when dealing with sensitive information. Create a mandatory policy and plan for fund transfers.
• Use Strong Password Policies – Implement strong password requirements and provide password managers for all employees.

Q: How do most cyberattacks start?

A: Human error is the primary entry point - over 90% of phishing attacks are the result of an employee clicking on a malicious link. Weak network security is the second most significant risk for businesses.

What is the First Step in Protecting Against Social Engineering Phishing?

Social engineering phishing remains a significant threat to small businesses. From spear phishing attacks to watering hole attacks and whaling phishing attacks, cybercriminals continue to evolve their tactics. By understanding these threats and implementing comprehensive defense strategies, small businesses can safeguard their sensitive information and maintain business continuity. Through a combination of employee training, technological tools, and best practices, small businesses can create a resilient defense against these ever-present cyber threats.

Cyberattacks are expensive and disruptive. Large attacks can wipe out years of effort and profit and cause many small companies to cease operations permanently within 6 months of an attack. Proactive security is the best defense, and it starts with a security assessment conducted by a professional cyber security firm. Managed cybersecurity services are an affordable option for small and midsized businesses that do not have a full-time in-house cyber security officer.