Is it Acceptable for Companies to Send Fake Phishing Emails to their Employees?

Phishing emails are, unfortunately, part of everyday life. Phishing isn't just a threat to our business; phishing impacts our daily lives. Black Friday is a case in point; in 2023 Black Friday generated nearly $10 billion in online sales in the US, with another $12.4 billion brought in on Cyber Monday, according to data compiled by Adobe. Over 50% of these are reported to be scams.  Phishing is now so prevalent that CISA.gov reports that 80% of businesses have fallen victim to phishing. With figures this high and phishing volumes set to reach new records, is it ethical to send phishing emails to employees to train them to spot phishing attacks?

This is an important question when developing a culture of security and one that TitanHQ explores here.

Understanding Phishing Attacks

Phishing attacks are a type of cyberattack where threat actors attempt to lure users into divulging sensitive information, such as passwords, bank account details, credit card information, and other personally identifiable information. These attacks are typically executed through email but can also occur through SMS, phone calls, and social media. Phishing attacks can be highly sophisticated, with attackers researching their targets and using personalized and trustworthy emails to manipulate users into taking action.

The consequences of phishing attacks can be severe, leading to data breaches, ransomware attacks, and significant financial loss. This makes it crucial for organizations to educate their employees on how to identify and respond to phishing attacks. Implementing comprehensive security awareness training programs can help employees recognize the signs of phishing and take appropriate actions to protect themselves and the organization.

Ethical Phishing Simulation of Your Employees

Phishing simulations or ''fake phishing'' is a method used to train employees to spot the signs that an email is phishing. Simulated phishing exercises aim to change behavior so that when an actual phishing email enters an employee's inbox, they know how to react safely.

Phishing simulation platforms allow an organization or an MSP to deliver the capability to create realistic but fake phishing emails that are then sent out to employees to test their responses. Advanced phishing simulation platforms have various features, including pre-configured templates, tailoring of phony phishing emails to specific job roles, and automation. The phishing emails generated by a phishing simulation platform are meant to look realistic and reflect the typical phishing emails an employee is likely to encounter. However, the problem with sending out a fake phishing email to an employee is that it could be seen as misleading employees. However, some core principles of ethical fake phishing will ensure the process is successful:

Informed Consent and Transparency

Building a culture where collaboration and trust are shared with your employees is essential. Involving employees in simulated phishing training makes you less likely to have complaints and more likely to have interactive and focused training. Informed consent is intrinsic to the success of simulated phishing training. By obtaining consent at the start of  and fake phishing, you include your employees in the process and help to establish cultural bridges. This level of transparency is part of the overall process of building a culture of security that makes your employees an essential part of your cybersecurity strategy. Encouraging employees to report phishing attacks is a crucial part of building a transparent and collaborative security culture.

Real-Time Interactive Training

A fundamental part of effective phishing training is to educate. One of the most powerful ways to educate is through interactive sessions, with research showing that interactive learning is more effective. When choosing a simulated phishing platform, ensure it has proven interactive and real-time training. This interactive training provides feedback to employees when they perform an action that would result in a successful phish. This helps employees understand what went wrong, why, and how to prevent doing this in actual phishing attacks.

Train People; Don’t Try to Catch Them Out

Cybercriminals use emotional triggers to elicit behavior that results in an employee performing an action that benefits the fraudster, like clicking a link. However, an ethical simulated phishing campaign should not exploit emotional triggers, such as promises of bonuses. The result is usually unhappy employees. Simulated, ethically considered phishing campaigns can achieve the same result without resorting to underhand emotional tactics. Avoid fake phishing emails that contain sensitive or personal triggers.

Create a Positive Security Culture and Avoid Blame

Simulated phishing training is about education and behavior change. One of any employee's most negative educational experiences is being involved in a blame culture if they click a phishing link. Cultivate a safe, simulated phishing test that educates and changes behavior, not one that makes employees nervous or angry.

90% of data breaches begin with a phishing email.

Cisco

The Benefits of Security Awareness Training for Employees and Businesses 

By performing ethically driven fake phishing campaigns, both the business and the employee benefit: An effective security awareness training program can significantly enhance both employee and business security.

Company Safety

Phishing severely damages a business: phishing results in malware infection, ransomware attacks, Business Email Compromise (BEC), and personal data and credential theft. According to research by Cisco, 90% of data breaches begin with a phishing email. The ransomware attack cost was $4.35m in 2022, according to IBM - this did not include the ransom. BEC scams are similarly damaging; while costs vary, the total costs to global businesses of BEC crimes come to around $50 billion, according to an FBI report.

Ultimately, it is essential that employees feel comfortable reporting a cyber-incident, so ethically designed phishing simulations that use real-time interactive education should help to establish this behavior. Timely incident response can help prevent an incident from becoming a full-blown attack.

Fake phishing training works. When TitanHQ security awareness training is used to train employees using phishing simulation, there is an average decrease in employee phishing vulnerability of 92%.

Read about reducing phishing vulnerability in TitanHQ’s "2023 Automated Phishing Simulation Success Report." 

Employee Safety 

When performed ethically, fake phishing simulations are a positive experience for an employee. Not only do they help to protect a company, but they also help to prevent personal phishing attacks. The phishing training an organization provides will also benefit the person in their personal life, helping them avoid scams. Also, regularly trained employees to spot phishing emails will feel part of a broader security culture. 

How to Fake Phish Your Employees Safely

Phishing simulations are used to train employees on the subtleties of modern phishing and to know how to deal with real phishing emails. Choosing the best phishing simulation software is crucial for ensuring the effectiveness and ethicality of your phishing simulation program. Fake phishing is about changing behavior that cybercriminals exploit, such as the urge to click on an urgent request. Performing ethical fake phishing requires planning and execution with a moral stance. The following considerations will help you to develop your ethically driven phishing simulation program:

Plan the Phishing Campaign

Think ethically when planning your campaign. Remember to train; don't trap. Phishing training is about understanding how cybercriminals exploit behavior and changing that behavior. Use phishing templates to generate realistic phishing campaigns, but don't use the same low-hit emotional triggers that cybercriminals do - avoid emotional triggers and underhand tricks such as salary increases and promotions - there are better ways to elicit and change behavior.

Co-Opt Your Employees into the Campaign

Tell your staff that you will be sending out fake phishing emails and take their informed consent. By being transparent with your team, you will help to build trust. Group cooperation is an instinct in humans; use known encouraging behavior such as feeling part of a group and conforming to a social norm.  

Use Real-Time Educational Interventions with Simulated Phishing Emails

Make the training interactive and informative. Advanced phishing simulation platforms, such as TitanHQ Security Awareness Training, provide interactive training sessions. For example, suppose an employee clicks on a phishing link in a fake email. In that case, the simulator will pop up an on-screen training exercise explaining to the employee what they did to trigger the incident and what would have happened if this was real. It also explains how to avoid this behavior in real-life phishing incidents.

Do a Post-Training Analysis

After the training sessions:

1. Offer a post-training analysis with feedback.
2. Offer employees further help understanding the subtleties and complexities of sophisticated phishing threats.
3. Encourage them to report any incidents, explaining that you have a no-blame security culture. 

Best Practices for Phishing Simulation

Phishing simulation is a crucial component of security awareness training, and when done correctly, it can significantly improve employee awareness of phishing threats and increase the likelihood that they will respond correctly when they encounter a suspicious email. Here are some best practices for phishing simulation:

1. Conduct Regular Phishing Simulations: Regular phishing simulations help keep employees alert and aware of phishing threats. Consistent training ensures that employees remain vigilant and can recognize phishing attempts over time.

2. Use Realistic Phishing Templates: Phishing templates should mimic real-world phishing attacks as closely as possible. This helps employees develop a sense of what to expect and how to respond, making the training more effective.

3. Provide Feedback and Training: After each simulation, provide employees with feedback and training on how to identify and respond to phishing attacks. This reinforces learning and helps employees understand their mistakes.

4. Use Automated Phishing Simulations: Automated phishing simulations can streamline the training process and reduce the workload on IT staff. These tools can schedule and execute simulations without manual intervention, ensuring consistent training.

5. Use User-Specific Simulations: Tailor simulations to the specific needs of different user groups within the organization. This ensures that employees receive relevant training that addresses the unique threats they may encounter in their roles.

Measuring Success

Measuring the success of a phishing simulation program is crucial to understanding its effectiveness and identifying areas for improvement. Here are some key performance indicators (KPIs) to measure:

1. Click Rate: The percentage of employees who click on simulated phishing emails. A lower click rate indicates better awareness and recognition of phishing attempts.

2. Report Rate: The percentage of employees who report simulated phishing emails. A higher report rate suggests that employees are proactive in identifying and reporting potential threats.

3. Training Engagement: The level of engagement with phishing simulation training, such as completion rates and time spent on training. High engagement levels indicate that employees are actively participating in the training.

4. Knowledge Assessment: The level of knowledge and understanding of phishing threats and how to respond to them. Regular assessments can help gauge the effectiveness of the training program.

5. Behavioral Change: The level of behavioral change, such as a reduction in phishing-related incidents. Monitoring changes in behavior over time can help determine the long-term impact of the training.

The Future of Phishing Simulation

The future of phishing simulation is likely to involve more advanced technologies, such as artificial intelligence and machine learning, to create more realistic and personalized phishing simulations. These technologies can analyze user behavior and craft highly targeted phishing emails that closely mimic real-world attacks, making the training more effective.

Additionally, phishing simulation is likely to become more integrated with other security awareness training programs and tools, such as security information and event management (SIEM) systems and incident response plans. This integration can provide a more comprehensive approach to cybersecurity, ensuring that employees are well-prepared to handle various cyber threats.

As phishing attacks continue to evolve and become more sophisticated, it is essential for organizations to stay ahead of the threat by implementing effective phishing simulation programs and continuously monitoring and evaluating their effectiveness. By doing so, organizations can build a robust security culture that protects both employees and the business from cyber threats.

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