A Step-By-Step Guide To Conducting an Effective Phishing Simulation

Phishing refers to a situation when cybercriminals pretend to be legitimate entities to deceive people into disclosing sensitive information such as passwords, credit card details, or other personal data. These deceptive messages often come via email, but they can also appear as text messages, social media messages, or even phone calls.

You may ask: What should my organization do to protect employees from phishing?

We have the answer – be prepared by regularly conducting phishing simulations. In this article, we’ll share a helpful guide to planning, performing, and analyzing a phishing simulation within your company. Let’s start!

Why Is a Phishing Attack Effective?

A phishing attack manipulates human psychology, that’s why it is often successful. Cyber attackers create their emails to seem urgent, persuasive, and authentic. According to the CISO survey, 70% of sensitive data loss at organizations happens because of careless users.

For example, you may get an email that looks like the one from your bank. It can inform of suspicious activity on your bank account and encourage you to follow a link to confirm your personal information. However, this link directs you to a fake website designed to compromise your credentials.

Here are a few real-life examples to illustrate the impact of phishing:

The Google Docs phishing scam

In 2017, a massive phishing campaign targeted Google users with an email that appeared to be from a contact sharing a Google Doc. When users clicked the link, they were directed to a fake Google login page. It enabled attackers to obtain their login credentials. This attack spread quickly and affected millions before it was contained.

The Sony Pictures hack

In 2014, Sony Pictures Entertainment was the victim of a devastating phishing attack. Many of the employees fell for the scam. They gave attackers access to their sensitive information, which led to significant data breaches and leaks.

The Long-Term Consequences of Phishing

Over the years of experience in cybersecurity services, we made sure that phishing attacks can bring serious consequences for individuals and organizations. You should be attentive not to face the following consequences:

• Financial loss. Victims can face significant financial losses. They can be due to fraudulent transactions or indirectly from costs associated with identity theft and data recovery.
• Reputation damage. Businesses that fall victim to phishing can lose customer trust and suffer long-term reputational harm.
• Business interruptions. Phishing attacks can result in data breaches, which can lead to downtime and disruption of business operations.
• Legal and regulatory penalties. Organizations can experience legal penalties and regulatory fines if they can’t protect sensitive customer information properly.

Being aware is vital: Why you should read on

Realizing the ins and outs of phishing is vital to securing yourself and your organization. In this article, we'll share with you how to effectively simulate phishing attacks with the help of automated tools and platforms. You will gain knowledge that will help you protect your data and strengthen your overall security posture.

Understanding a Phishing Simulation

Conducting phishing simulations is a proactive way to reinforce your organization's cybersecurity defenses through testing and training employees to detect and respond to phishing attacks. In this section, we'll explain what a phishing simulation is, its key goals and objectives, and the benefits of conducting it regularly.

Definition of a phishing simulation

A phishing simulation is a controlled practice in which simulated phishing emails or messages are sent to employees. The goal is to test their awareness and response to phishing attempts. This simulation mimics a real phishing attack but is harmless. It aims to identify weaknesses and educate employees.

Example: A company may send an email to its employees that pretends to be from the IT department. In the message, they ask employees to follow the link to update their password. Employees who click the link will be redirected to a training page explaining how they fell for a simulated phishing attack. They will also be provided with tips on how to avoid such hooks in the future.

Key Goals and Objectives of Conducting a Phishing Simulation

The primary goals of a phishing simulation are to:

• Raise awareness. Educate employees about the dangers of phishing and how to identify suspicious emails and messages.
• Assess vulnerability. Identify which employees or departments are most susceptible to attacks.
• Improve response. Train employees on the correct actions to take when they encounter a potential phishing attempt, such as reporting it to the IT department.
• Strengthen defenses. Enhance overall cybersecurity posture by reducing the likelihood of successful attacks through ongoing education and awareness.

Example: A financial institution conducts monthly phishing simulations to ensure that all employees are aware of the latest phishing tactics. After each simulation, they assess which employees clicked on the phishing links and provide targeted training to those individuals to improve their vigilance.

Benefits of Running Regular Simulations

Regular phishing simulations offer several significant benefits for organizations. Let’s explore them!

Continuous learning

Employees stay informed about the latest phishing techniques and improve their ability to recognize and avoid them.

Example: A tech company runs quarterly phishing simulations with updated scenarios reflecting the latest phishing trends, ensuring that employees are always prepared for new cyber threats.

Risk reduction

By identifying and addressing vulnerabilities, organizations can significantly reduce the risk of successful phishing attacks.

Example: A healthcare provider identifies that its administrative staff are more susceptible to cyber attacks. They implement additional training and see a marked decrease in click rates in subsequent simulations.

Meeting compliance and security standards

Regular simulations help organizations meet compliance requirements and adhere to industry security standards.

Example: An e-commerce business uses a phishing simulation to demonstrate compliance with PCI-DSS requirements, showcasing their commitment to protecting customer data.

Enhanced reporting and response

Employees become more adept at reporting phishing attempts, enabling faster and more effective responses to real threats.

Example: After several simulations, a retail company notices a significant increase in the number of phishing emails reported by employees, allowing their IT team to address threats more swiftly and efficiently.

Overall, a phishing simulation is an essential tool for any organization that prioritizes its cybersecurity. Providing a simulated phishing test and training for employees can:

• Raise awareness
• Reduce vulnerabilities
• Improve overall security posture

In-House Phishing Simulation vs External Providers

When it comes to running phishing simulations, organizations can choose between conducting these simulations in-house or using external providers. Each approach has its own set of advantages and challenges.

In-house phishing simulation

Conducting a phishing simulation in-house means your internal IT or cybersecurity team is responsible for designing, launching, and analyzing the simulation.

Pros:

• Customization. You have full control over the design and content of the phishing scenarios, allowing you to tailor them specifically to your organization’s needs.
• Cost-effectiveness. If your organization has a skilled IT team, conducting simulations in-house can be more cost-effective, avoiding the fees associated with external providers.
• Direct control. You can manage the entire process, ensuring that all data remains within your organization.

Cons:

• Resource intensiveness. Developing and managing phishing simulations requires significant time and expertise, which can strain your internal resources.
• Limited scalability. As your organization grows, scaling in-house simulations can become more challenging.
• Potential bias. Internal teams might inadvertently design simulations that do not fully challenge employees, reducing the effectiveness of the training.

Using external providers

Engaging external providers involves partnering with specialized companies that offer phishing simulation services.

Pros:

• Expertise and experience. External providers bring specialized knowledge and experience, offering sophisticated and up-to-date phishing scenarios.
• Scalability. Providers can easily scale the simulations to accommodate organizations of any size.
• Comprehensive reporting. Many providers offer detailed analytics and reporting, helping you understand the effectiveness of your simulations and identify areas for improvement.

Cons:

• Cost. Using external providers can be more expensive, with ongoing subscription or service fees.
• Less control. You might have less control over the content and design of the simulations, which may not always perfectly align with your specific needs.
• Data privacy concerns. Sharing sensitive information with external providers can raise data privacy and security concerns.

Evaluating Popular Phishing Simulation Providers

Selecting the right phishing simulation provider is a critical step toward strengthening your organization’s cybersecurity posture. With multiple providers available, it’s essential to evaluate them based on relevant criteria to find the best fit for your needs. Let's have a look at the main points to consider!

Provider comparison criteria

To find the right phishing simulation provider, consider these key aspects:

Feature set:

• Customization. Does the provider allow you to create tailored phishing scenarios specific to your organization?
• Automated campaigns. Can you automate simulation scheduling and follow-up reminders?
• Reporting and analytics. Does the platform offer comprehensive reports that track click rates, submissions, and incident reports?
• Integration. Can the solution integrate with your existing systems, such as email platforms, security tools, or learning management systems (LMS)?

Pricing structure:

• Subscription vs. pay-per-use. Some providers offer annual subscriptions, while others charge per simulation or user.
• Hidden costs. Watch out for additional fees for advanced features or reporting tools.
• Free trials and demos. Does the provider offer a free trial or demo period to test the platform?

Customer reviews and ratings:

• Reputation. Look for customer feedback on the platform’s reliability and usability.
• Support and training. Are users satisfied with the level of customer support and training resources provided?
• Success stories. Check case studies and reviews to understand how well the platform has worked for businesses similar to yours.

Top Providers Overview

Here is a brief overview of the best phishing simulation software providers, highlighting their core features.

CanIPhish

CanIPhish offers an accessible phishing simulation platform with a focus on ease of use. It’s ideal for small to medium businesses or teams looking to conduct simulations without extensive training.

Key features:

• Pre-built phishing templates.
• Self-service model with no external dependency.
• Integration with Google Workspace and Azure AD.
• Flexible pricing model with monthly subscriptions.
• Automated employee phishing simulation training through microlearning modules.

HookSecurity

HookSecurity emphasizes user engagement and behavioral change through humor-based security awareness content combined with a phishing simulation. This makes it an excellent option for organizations focused on reducing training fatigue.

Key features:

• Gamified phishing simulations with easy-to-learn content.
• Integrations with Microsoft Azure Active Directory, Okta, OneLogin, PingOne Ping Identity, OpenLDAP, and MS Active Directory via LDAP.
• Behavioral analysis reports to measure improvement over time.
• Scalable pricing for small to large organizations.

KnowBe4

KnowBe4 is one of the most popular and robust phishing simulation platforms on the market. It provides a large library of phishing templates and offers detailed analytics, making it ideal for enterprises.

Key features:

• Large template library with regional customization.
• Advanced reporting with metrics like click-through rates and user risk scores.
• Integration with security awareness training modules.
• Automatically blocks phishing threats that have bypassed email security filters with crowdsourced threat intelligence and AI‑powered blocklisting.
• AI-powered phishing simulation tools to create custom phishing scenarios based on emerging trends. KnowBe4 gives its users practice in identifying social engineering attacks.

PhishingBox

PhishingBox offers a balance of simplicity and functionality, with a focus on easy-to-launch campaigns. This phishing simulator is robust and allows for complex testing schedules, a dynamic template library, editing of templates, and more.

Key features:

• Simple setup with easy campaign configuration.
• Reporting tools that allow tracking of each employee’s progress.
• LMS integration for post-simulation training.
• Offers KillPhish™ – an advanced email threat protection add-in for Microsoft 365.

Choosing the right phishing simulation provider depends on your organization’s size, goals, and budget.

• If you are a small business looking for a simple and low-cost solution, CanIPhish might be the right choice, with its self-service model and free tier.
• If employee engagement is your priority, HookSecurity offers humor-based content that can make phishing training fun and effective.
• If you are an enterprise seeking advanced reporting and large-scale customization, KnowBe4 is the industry leader with extensive features.
• If you need an easy-to-use platform, PhishingBox provides essential tools with scalable pricing.

No matter which provider you choose, regular phishing simulations will help your employees stay vigilant and your organization better prepared against phishing threats. Take the time to assess your needs, explore free trials, and leverage customer feedback to make the best decision for your team.

Providing Feedback and Security Awareness Training Program

Running phishing simulations is just the first step; what follows makes a real difference. Proper feedback and training based on simulation results turn mistakes into learning opportunities and strengthen your organization's defenses. Here's how to provide individual feedback, organize group training, and continuously reinforce security awareness across your organization.

Individual feedback

Providing personalized feedback to employees who interacted with simulated phishing tests helps them understand mistakes and learn to avoid them in the future.

• Notifying employees of their performance

After each phishing test, promptly notify employees of their performance via automated or personal messages. Send targeted training modules to address specific weaknesses while ensuring employees don't dismiss potential real threats as just another test.

Example: "Hi [Employee Name], during our recent phishing simulation, you clicked a link that mimicked a credential request. This could compromise our systems in a real attack. Let's review steps to avoid this mistake."

• Highlighting mistakes and providing corrective actions

Point out mistakes, explain why they're errors and offer actionable tips. Use positive reinforcement to keep employees motivated.

Example: "You clicked on a link from an unfamiliar email address. Always hover over links to verify the sender, and watch for spelling errors in domain names – common phishing signs."

Constructive feedback in a non-punitive manner encourages engagement and fosters a culture of continuous improvement.

• Group training sessions

Organizing group training addresses patterns and common mistakes identified during simulations. These sessions are valuable for reinforcing lessons across teams or departments.

• Training based on common weaknesses

If multiple employees fall for a specific phishing tactic, focus group training on recognizing these patterns and building more cautious habits.

Example: If several employees clicked an email posing as an urgent HR message, the group training could focus on how attackers use urgency and authority to trick victims.

• Tailoring future training programs

Phishing simulations yield data that guides future training efforts. For instance, if employees struggle with malicious attachments, training can focus on email security and attachment scanning.

Example: A retail company noticed employees often interacted with emails disguised as shipment notifications. They introduced a workshop on verifying order-related emails.

Tailored sessions ensure that training reflects real risks, keeping employees engaged and better prepared.

• Reinforcing security awareness

One-time feedback isn't enough to maintain vigilance. Reinforcing security awareness through ongoing education ensures employees remain alert to phishing attempts.

• Integrating cybersecurity into daily practices

Encourage employees to apply lessons from simulations in their daily tasks. Promote practices like verifying sender addresses, reporting suspicious emails, and using multi-factor authentication.

• Regular awareness campaigns

Periodic reminders, newsletters, or gamified activities keep cybersecurity awareness at the top of mind. A "Phishing Tip of the Week" or monthly quizzes can reinforce key messages.

Example: A healthcare organization sends a monthly newsletter highlighting recent phishing trends and success stories of employees correctly reporting phishing attempts.

• Recognition and rewards programs

Recognize employees who demonstrate strong cybersecurity practices, like reporting phishing emails. Rewards like shout-outs or certificates motivate others to follow their example.

Example: "Kudos to Sarah for reporting a phishing attempt! Her quick action helped protect our organization from a potential data breach."

Through regular phishing campaigns and reinforcing awareness, employees internalize lessons and apply them consistently.

The Importance of Continuous Improvement

Phishing simulations shouldn't be a one-off exercise. Building a resilient cybersecurity culture requires regularly updating simulation scenarios to reflect evolving phishing techniques and tracking progress. Let's consider key points:

• Regularly updating simulation scenarios

Phishing tactics are constantly changing. Your simulations must evolve to keep employees vigilant.

• Keeping up with new phishing tactics and trends

Stay informed about phishing trends to create realistic simulations. Campaigns often adapt to current events, catching victims off guard.

Example: During the COVID-19 pandemic, phishing emails disguised as health updates were prevalent. A simulation using similar themes trains employees to recognize such tactics.

• Ensuring simulations remain challenging and relevant

Repetition of similar phishing messages may lead to complacency. Vary scenarios to maintain engagement, gradually increasing difficulty to build confidence.

Example: An organization introduced spear-phishing scenarios with emails appearing from senior executives after employees excelled at basic phishing tests.

• Measuring long-term effectiveness

Effective simulations provide insights into user behavior, helping adjust strategies as needed.

• Tracking improvement over time

Monitoring click rates, reporting rates, and response times show how well employees are adapting to phishing threats.

Example: A company saw click rates drop from 25% to 10% over six months, indicating successful training.

• Adjusting strategies based on ongoing results

If certain phishing scenarios consistently trick employees, refocus training on those areas.

Example: If employees struggle with emails disguised as internal IT requests, future training could focus on verifying internal emails and recognizing red flags.

Using detailed reports from each simulation, you can fine-tune campaigns and keep employees ahead of emerging threats.

Summing Up

A phishing attack is a pervasive threat in today's digital landscape, exploiting human vulnerabilities and potentially leading to data breaches, financial losses, and reputational damage. Phishing simulations offer essential, practical experience, helping employees recognize and respond to threats before a real attack occurs.

Recap of the importance of phishing simulations

Phishing simulations do more than test employees – they teach them to prevent phishing attacks. By exposing employees to realistic, safe phishing scenarios, they build essential skills to identify and report malicious emails, effectively strengthening your defense.

Through regular simulations, you can:

• Identify vulnerabilities in your workforce.
• Provide personalized feedback and targeted training to enhance awareness.
• Track progress over time, ensuring continuous improvement.

Example: A retail business launched quarterly phishing simulations, initially seeing a 20% click rate on phishing links. After six months of feedback and training, the click rate dropped to 5%, while reported phishing attempts doubled – demonstrating how simulations translate into real-world readiness.

Encouragement to integrate simulations into regular security practices

As hackers evolve their tactics, so must your security practices. Phishing simulations shouldn’t be a one-time task; they should be a regular part of your organization’s security routine, similar to fire drills – allowing for practice, preparation, and improvement.

By regularly running simulations:

• Employees remain alert and engaged in cybersecurity practices.
• New vulnerabilities are identified as workforce and systems change.
• Training is refined based on the latest threats.

Example: A healthcare organization conducts monthly phishing simulations, which not only reduce click rates but also help staff develop stronger habits like proactively reporting suspicious messages – making vigilance second nature over time.

Fostering a culture of cybersecurity awareness

Phishing simulations are about more than avoiding clicks – they are part of cultivating a cybersecurity-aware culture. A security-conscious organization encourages employees to view each lesson as an opportunity to grow and contribute to team protection.

To foster this culture:

• Encourage open communication about cybersecurity threats.
• Recognize employees who report phishing attempts and practice good security habits.
• Emphasize that everyone, from entry-level to executives, plays a role in organizational security.

Example: A tech company rewards employees who identify phishing emails with public recognition or small incentives like gift cards, motivating vigilance and reinforcing cybersecurity as a shared responsibility.

Keep Learning, Keep Improving

Cybersecurity is an ongoing journey. Phishing simulations provide employees with knowledge and confidence to face evolving threats, but they’re most effective when paired with consistent training and reinforcement. Each simulation, whether successful or not, is an opportunity to learn, adapt, and grow stronger as a team.

Over the years of experience, we can confidently state that organizations must make phishing simulations a regular part of their security strategy and foster a culture of cybersecurity awareness. These practices help companies transform employees from potential targets into your first line of defense. Start small, stay consistent, and commit to ongoing learning – your organization’s security depends on it.

FAQs

1. What is phishing? Why is it a significant cybersecurity threat?

   Phishing is when cyber attackers pretend to be trusted entities to deceive victims into sharing sensitive information. They often use fake messages or emails to trick the receiver and make him follow the harmful link.

2. What is a phishing simulation, and how does it work?

   A phishing simulation is a controlled test where fake phishing messages or emails are sent to employees. The goal is to estimate and improve employees' ability to identify and report such threats.

3. Why should companies conduct phishing simulations regularly?

   Regular simulations help identify employee vulnerabilities, improve cybersecurity awareness, and strengthen defenses against potential real-life phishing attacks.

4. What are the benefits of using an external provider for phishing simulations?

   External providers offer expertise, scalable solutions, and detailed reporting. They make managing complex simulations easier and keep them aligned with current phishing trends.