Phishing EmailsWhen Email Scammers Target Your Entire Organization

Where Do Phishing Emails Come From? How Can You Stop Them From Destroying Your Business?

Okay, picture this.

You’re an electronics retailer. You’re in your office checking email when you spot something odd: a message advertising a ridiculously low price on late-model computers.

The offer sounds too good to be true. But, that’s not the weirdest part: the real problem is that the email is allegedly coming from… you.

You open the message. There’s your logo, and the familiar colors associated with your brand. But, the computer being advertised isn’t a brand you sell. You start to click through to the website, but something makes you hesitate. You know the computer isn’t on your site… so where is that link going to take you? And an even better question: how many other people received this same email?

We call this a textbook example of a phishing email.

Today, we’re going to examine why phishing emails are so dangerous to your business. We’ll also explain how your information can be used to create phony messages, and share some tips for detecting when you might’ve been targeted with phishing emails.

What is a Phishing Email?

Phishing Email

[noun]/fiSH • iNG • ē • māl/

A phishing email is a fake message that appears to be from a trusted source, but which is used to con people into clicking links, giving up information, or sending money. 

“Phishing” is a trick fraudsters use to scam businesses or individuals into helping them commit cybercrime. Phishing emails are typically sent in bulk to thousands of recipients at a time. The goal is to trick recipients into performing some action — clicking a link, sending money, providing exploitable information — that they normally would not do.

Phishing can be conducted via numerous methods, including via SMS (text) message, a voice message, or social media. But, email is the oldest and more commonly used form.

Most people won’t fall for email phishing, of course. Fraudsters know that only a small percentage of those targeted will bite. That’s why they cast such a wide net; according to recent data, over 3.4 billion phishing emails are sent every single day.  And, even if only a handful of recipients respond, the rewards are worth the effort.

How Do Phishing Emails Work?

We get so many emails every day, we tend not to exercise as much due diligence as we should. 

A message dressed up like an invoice, bank notice, or customer inquiry can easily blend into the normal flow of daily communication. We may open or respond automatically without double-checking that the sender is who they claim to be.

Below is a textbook example of a phishing email with red flags highlighted:

1. Urgent or alarming subject line designed to grab your attention immediately.
2. Misspelled or disguised domain/email address using lookalike characters or unusual domain names (lowercase “L” instead of the uppercase “I”).
3. Incorrect, outdated, or inconsistent company branding elements.
4. Generic greeting such as “Dear Customer” instead of using your actual name.
5. Noticeable spelling mistakes or awkward grammar within the message body.
6. Suspicious links that lead to fraudulent or unexpected websites.
7. Unexpected attachments that may contain malware or viruses.

One other thing: the CTA link will connect to the bogus website… but so might other links in the email; the link to unsubscribe, for example, may also redirect to the scam site. In fact, in a majority of cases, the entire page will be one linked image: click anywhere, and the fraudster gets what they want.

How Much Damage Can Phishing Emails Do? Statistics & Case Studies 

In the grand scheme of things, fewer than 18% of recipients will do what the fraudster wants. So, are phishing emails really that big a deal?

Yes. Remember what I said earlier: scammers deliberately cast a wide net to try and trap as many victims as possible. Not convinced? Just check out these stats I’ve compiled below:

Still not convinced? Take a look at these real-world examples:

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How Criminals Craft Phishing Emails to Impersonate Your Business

“Why me?” you ask?

It’s a fair question: why would fraudsters hide behind your brand when they do their dirty work? According to one report, about half of all brand-impersonation attempts involve a scammer disguising themselves as a major corporation such as Microsoft, Google, or Amazon. So, why do the remaining half other scammers pick on innocent merchants like you?

Several reasons. For starters, small- to mid-sized companies are less likely to employ full time fraud and security people. The big names have the resources to detect an in-progress attack within hours. Targeting you, however, may draw less attention.

If you have great reviews, that’s also a draw. It points to an established customer base that trusts you. If you regularly send out customer communications — coupon offers, newsletters, etc. — your customers won’t even blink at one more email. 

How Scammers Use Their Phishing Emails

Impersonation only works if recipients truly believe that the message is from you. With savvy and AI-powered tools, mimicking your business keeps getting easier.

Slightly misspelled domain names (a practice called “typosquatting”) can deceive users. For example, using “Chargeback911.com” instead of “Chargebacks911.com.” It’s also easy to copy, download, or even recreate most logos. Using specific typefaces help make scam messages match yours. A cybercriminal can even use one of your actual marketing emails as a template, matching colors, styles, tone, and even the writing style.

Once they have a facsimile email (with legitimate information swapped for their fake info), there are a number of phishing attacks cybercriminals can try. Common brand impersonation scenarios include:

• Fake order confirmations mimic legitimate purchase receipts.
• Fraudulent password reset requests prompt victims to perform an unauthorized password change.
• Account suspension warnings claim victims’ accounts will be locked unless they take action.
• Counterfeit shipping alerts demand more information to deliver a (non-existent) order.
• Phony refund/credit notices Entice users with fake refunds or account credits.
• Customer service impersonation attackers pose as support agents from a trusted source.

The end goals here are all the same: con the user to click on a malicious link, make an illegitimate purchase or payment, or input private information such as passwords, financial records, or trade secrets. 

How Phishing Emails Can Impact Your Business 

Successful phishing emails can pack a wallop. Just one compromised email can cause cracks that leak a flood of data: payment records, employee passwords or login credentials, trade secrets, and more.

It gets worse. If customer databases are breached, you get the fun job of notifying your customers (more on that in a bit). You’ll make yourself vulnerable to consumer lawsuits. You could also face non-compliance penalties under regulations like GDPR or PCI-DSS.

Then there’s the operational aftermath. Days or weeks spent figuring out what happened, how it happened, and how to keep it from happening again. You’ll need to assess the extent of the damage, which systems were affected, and how to make amends to damaged parties.

There can be long-term damage, too, especially when it comes to your reputation. If  crooks scam consumers using your company, the victims will blame you. That means negative reviews and social media backlash. News feeds will amplify the issue, so prospective customers may shy away, too.

The impact “ripple” of email phishing could haunt you for years. There’s no question that prevention is the better option.

How to Identify a Phishing Email

In addition to the obvious design elements we talked about earlier, here are a few more common red flags that could indicate a potential phishing attack. This is information you definitely want to share with your employees.

Sender Anomalies

• Mismatched email addresses, as we mentioned above
• Generic sender names (“Customer Service” vs. a specific person)
• Sender address doesn’t match alleged organization’s website 

Content Warning Signs

• Urgent or threatening language (“immediate action required”)
• Generic greetings
• Poor grammar, spelling errors, awkward phrasing
• Strange attachments (especially .exe, .zip, .scr files)
• Requests for sensitive information like passwords, SSN, or card numbers
• Mismatched branding (logos, colors, or fonts that are slightly off)
• “Too-good-to-be-true” offers or prizes

Technical Indicators

• Shortened URLs that hide true destinations
• Links with IP addresses instead of domain names
• HTTPS used deceptively
• Suspicious file attachment extensions
• Request to disable security software

Context Clues

• You weren’t expecting this email
• Claims about accounts you don’t have
• References to actions you didn’t take
• Received outside normal business hours
• Copying unusual recipients

Common Misconceptions About Phishing Emails

It’s getting harder and harder to identify scam emails. Fraudsters are getting more savvy, and AI is helping crooks avoid red flags. So it’s important to look at some of the myths surrounding phishing emails, and parse what is true and what is false.

Fiction: “Phishing emails always contain obvious errors.”
Fact: Modern phishing emails are often polished, with proper grammar and legitimate-looking branding.

Fiction: “Phishing only targets individuals, not businesses.”
Fact: Businesses, especially small- to medium-sized merchants, are increasingly targeted for sensitive data, wire transfers, and brand impersonation.

Fiction: “If it’s from a known contact, it’s safe.”
Fact: You can never be 100% sure that a person sending you a message is who they claim to be. Email accounts — even from within your company — can be compromised or very convincingly spoofed.

Fiction: “Spam filters catch everything.”
Fact: While modern filters are great at stopping email fraud, clever fraudsters still find ways to bypass detection and slip phishing campaigns through the cracks all the time.

Fiction: “I’m safe as long as I don’t click a link.”
Fact: You’re usually safe by not clicking, but older software can still pose risks. While it’s rare, automatically loaded images can potentially reveal exploitable information.

Fiction: “I’m too small (or too smart) to be targeted.”
Fact: Don’t kid yourself. Phishers cast wide nets, trying to catch anyone who might yield value. Individuals, small businesses, or enterprise organizations are all at risk.

Signs That Your Business May Have Been Targeted

How do you know if fraudsters have your business in their sights? It's good to be aware of tip-offs that can help you detect whether you might've been targeted with phishing emails.

Internal Targeting Indicators

If phishers attack everyone in your company at once, you’ll probably figure it out pretty quickly. Talk to employees about spotting (and immediately reporting) these red flags:

• Unusual login attempts from foreign locations
• Unauthorized changes to payment/shipping information
• Strange email requests from alleged internal executives
• Unexpected or unfamiliar, attachment-laden emails
• IT tickets about account access issues

Brand Impersonation Red Flags

If crooks are using your name and logo to scam consumers, it can be harder (but not impossible) to detect. Be on the lookout for:

• Customer complaints about emails you didn’t send
• Social media mentions of suspicious emails from “your company”
• Customers questioning charges for purchases that were “already paid” via email
• Negative reviews mentioning scam or suspicious emails
• Unusual spike in chargeback disputes

Technical Omens

Finally, your IT department should watch out for these network or system warning signs:

• Unexplained data exfiltration
• Increase in “password reset” requests
• Abnormal network traffic patterns
• Unfamiliar devices accessing company accounts
• Unusual file encryption activity (potential ransomware)

Phishing Email Response Plan: What to Do When Your Brand is Impersonated 

So, you discover that fraudsters are sending out mass emails claiming to be you. What can you do to stop them?

Honestly? You probably can’t. These scams rarely run for more than a few days. Even if you could track down the culprit, it’s doubtful they’d still be running the bogus operation. Plus, operations like this being run out of the US or Europe are highly uncommon.

While you can’t shut down the scammer, you can reduce the impact. You need an actionable response protocol that’s already in place before the bad guys strike:

Document Everything: Your first step is always to gather the evidence. Collect screenshots of phishing emails (including headers) along with any associated domains or URLs.

Get a copy of fake website pages using archive.org. Document any potentially legitimate contact information, like phone numbers. Collect any customer comments (good or bad) you find on social media, review sites, Better Business Bureau, and so on.

Alert Your Customers: Phishing email attacks can become a PR crisis. To get ahead of the damage, quickly post an explanation and security advisory on your website, then email customers with an apology and share updates on social media. Oh, and update your FAQs to tell how you communicate with customers, and legitimate ways customers can contact you.

Notify Key Partners: Your company may be the eye of the phishing scam, but the storm will spread.

Telling you partners — bank, payment processor, web hosting company, security companies, and more — could even be harder than apologizing to customers. Vendors and suppliers, especially, may be afraid any bad media attention could rub off on them. You’ll need to outline what you plan to do going forward to keep them safe.

Report to Authorities: As we said, authorities are typically helpless in any specific case, but it's still good to report what happened. Your information will be added to any other complaints they’ve received and may strengthen a case against the perpetrators. If nothing else, they’ll be able to warn other merchants. You can also contact your State Attorney General; if you feel the culprits are near you, consider calling local law enforcement.

Takedown Procedures: After all direct notifications are sent,  it's time to expand your efforts. Report fake sites to hosting providers and file abuse complaints with domain registrars. Make sure phishing databases are aware of the situation.

You should also request removal from web browsers (Google Safe Browsing, Microsoft SmartScreen), and alert email providers like Gmail, Outlook, and Yahoo. 

Internal Security Audit: Carelessness, security missteps… or malicious behavior? You can't ignore the fact that part of the attack could have come from within. Once things have calmed down, you’ll need to do a comprehensive internal audit:

• Check for any actual breaches: Did scammers only pretend to be from your company? Or did they actually gain access to your systems and data?
• Review access logs for suspicious activity: Check for signs of system compromise like failed logins attempts, spikes in traffic, or unexpected access changes.
• Validate employee accounts: Verify email and system accounts to assure they haven't been hacked, which could still allow access to your systems.
• Confirm customer database security: Triple-check and lock down any stored customer data in case personably identifiable information was leaked.
• Test email authentication: This includes protocols like SPF (Sender Policy Framework), DKIM (DomainKeys Identified Mail), and DMARC (Domain-based Message Authentication, Reporting & Conformance)

Customer Communication & Education: While your plan should be in place ahead of an attack, this is a perfect time to focus on education for your customers.

Address common phishing scenarios on your website. Initiate contact with recently active customers, and offer regular status updates. You should standardize the way you respond to customers (we’ll talk more about that in a minute).

You don't want to have to go through this again, do you? Take the time to implement tools and techniques for long-term prevention.

Technical Safeguards: Scammers can’t register domains similar to yours if you’ve already got them. Holding multiple registered domains is way cheaper than a successful attack.

Keep track of any newly registered domains that resemble yours. As another tip, use Brand Indicators for Message Identification (BIMI) to display your company’s logo next to your authentic emails in a recipient’s inbox. 

Brand Protection: You can’t watch all potential attack activity by yourself. So… get help.

Trademark monitoring services alert you to suspicious or unauthorized use of your registered trademarks. Domain squatting watch services do something similar for new domain registrations similar to your brand. There are even services that track dark web activity.

Customer Education: As we mentioned earlier, this is a great opportunity to sneak a little fraud education onto your site. Add phishing questions to your FAQ, or create a “How to Spot Fake Emails” resource page. Be sure to regularly spell out what you’re actually doing to make sure this doesn’t happen again.

How to Notify Your Customers of Impersonation Scams

Sending notifications of impersonation scam attacks is non-negotiable; you simply have to do it. Period.

It can be tricky, though. On the one hand, you want to convey the issue as clearly as possible. On the other hand, you don’t want to say anything that could potentially be used against you. You need to own it, but you don’t want to sound like you’re to blame. Apologize for what happened, but focus on looking to the future.

Ultimately, how you notify customers will be up to you. To help you out, though, here are a couple of templates — one for email, one for a social media post — that you can use to notify customers after learning you’re being impersonated.

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