Phishing Simulation

Phishing is a major headache for information security professionals. As attackers move away from infrastructure and focus on people as targets, phishing emails are becoming the leading social engineering channel. And more popular phishing email types, like impostor or business email compromise (BEC) and ransomware, are making this problem even more challenging for security teams to manage.

To combat these threats, enterprises are increasingly turning to phishing simulations as a proactive measure to increase awareness and fortify an organization’s security posture at its most vulnerable threat vector: its people.

Phishing is a common form of cyber-attack where threat actors attempt to acquire sensitive data, such as login credentials or financial information, by masquerading as a trustworthy entity in electronic communications. This type of social engineering exploits human psychology to trick individuals into divulging confidential information.

According to Proofpoint’s 2024 State of the Phish report, human behavior continues to pose significant challenges. About 71% of working adults admitted to engaging in risky actions, and remarkably, 96% of them were aware of the potential dangers. This raises concern over the awareness and practices used to combat the many forms of phishing carried out today.

There are several common forms of phishing attacks, including:

• Email phishing: The most frequent form, where attackers send emails that appear to come from legitimate sources like banks or online services, urging recipients to click on malicious links or download harmful attachments.
• Spear phishing: A hyper-targeted attack aimed at specific individuals or organizations. Attackers gather personal information about the victim to craft a convincing and personalized message.
• Vishing: Short for “voice phishing,” this involves phone calls where attackers pose as trusted entities to extract sensitive information.
• Smishing: Similar to vishing, but conducted via SMS messages, often containing links to malicious websites.
• Whaling: A type of spear phishing that targets high-profile individuals like executives, aiming to steal sensitive corporate information.

Phishing attacks have had catastrophic impacts on the businesses and economies they target, resulting in newsworthy significance. One of the most damaging phishing attacks occurred in 2021 when hackers accessed Colonial Pipeline’s systems through an employee’s compromised password. This led to a ransomware attack that shut down the company’s operations for several days, causing fuel shortages across the U.S. East Coast. Colonial Pipeline paid $4.4 million in ransom, and the overall economic impact is estimated at over $3 billion.

In 2014, hackers tricked Sony employees into giving them their login details through phishing emails. This resulted in a significant data breach that leaked confidential company data, unreleased movies, and personal information of employees and celebrities. The attack caused an estimated $80 million in damages.

So, what to do? Effective technical email security controls are essential, but many information security professionals also want to focus on how their people react to what appears to be a malicious message. That’s why phishing simulations have become such popular components of well-rounded security awareness programs.

A phishing simulation is a cybersecurity exercise ​in which​​​ an organization sends ​its employees ​fabricated yet realistic phishing emails ​​to test their ability to recognize and respond to phishing attacks. These simulations mimic real-world phishing attempts, providing a safe environment for employees to learn and improve their cybersecurity awareness without the risk of actual data breaches.

​​Phishing simulations, or phishing tests, are a critical component of a comprehensive security awareness training program. They help organizations identify vulnerabilities in their workforce, educate employees on the latest phishing tactics, and reinforce best practices for handling suspicious emails. By regularly conducting these simulations, companies can significantly reduce the risk of falling victim to phishing attacks and enhance their overall security posture.​​​

​​​At Proofpoint, our phishing simulation tool lets you choose from thousands of templates, including examples of actual attacks using real brands ​​identified​​​​ by Proofpoint threat intelligence. You can also send simulations to populations like Very Attacked People (VAPs) or users who have engaged with known malicious content.​​

​​​If users click, enter information into a fake landing page, or download attachments, they can be presented with a landing page​​ ​​that​​​​ ​​typically ​​provid​​es​​​​ tips and ​​informs​​​​ ​​them​​​​ it’s a simulation. Be forewarned, though, that users may view this landing page for only a few seconds. The typical user reaction is to close out of these pages as quickly as possible. So, these pages are not ideal as standalone educational components.​​​​

It’s common for people to think that bad things happening in the world can’t happen to them. But the phishing simulations that users fall for can lead to that critical “Aha!” moment when users realize that they can, indeed, be compromised.

As phishing attacks become more targeted and trickier to spot, creating the concept of vulnerability is important to help drive the “why” of your security awareness program. After falling for one simulated phishing attack, users understand that they could be susceptible to an actual attack.

These simulations serve as a crucial defense mechanism in today’s evolving threat landscape, where organizations face an average of 66 million business email compromise attacks monthly, according to our latest report. While successful phishing attacks have decreased (71% of organizations experienced at least one successful attack in 2023 compared to 84% in 2022), the consequences have become more severe. Organizations reported:

• 144% increase in financial penalties from regulatory fines
• 50% increase in reputational damage
• 73% experienced BEC attacks, yet only 29% provide specific training on BEC threats

By providing hands-on experience in a controlled environment, employees develop practical skills to identify and respond to suspicious communications, transforming them from potential vulnerabilities into informed defenders of company data.

Phishing simulations create measurable improvements in an organization’s security posture. Regular testing helps identify departments or individuals needing additional support while providing immediate feedback and training opportunities when employees encounter simulated threats.

1. Planning the Simulation

Before launching a phishing simulation, the organization must ​meticulously plan the campaign​​​. This involves selecting the type of phishing attack to simulate, such as email phishing, spear phishing, or vishing. Administrators ​then ​outline the campaign’s scope, including which employees will be targeted, the frequency of the simulations, and the specific techniques and templates to be used.

2. Creating Phishing Emails

The next step is to draft the phishing emails. These emails are crafted to look as authentic as possible, often mimicking common phishing scenarios such as fake invoices, password reset requests, or messages from trusted entities like banks or online services. The emails may include links to fake landing pages or attachments designed to lure employees into clicking or downloading them.

3. Distributing the Emails

Once the phishing emails are ready, they are distributed to the selected employees. The distribution can be staggered over a period to avoid arousing suspicion and to simulate a more realistic attack scenario. The emails are sent during working hours to ensure they are seen and acted upon by the employees.

4. Monitoring Responses

As employees receive and interact with phishing emails, their responses are closely monitored. The simulation tracks various metrics, such as the number of employees who clicked on the malicious links, downloaded attachments, or entered their credentials on fake landing pages. It also records who reported the phishing attempt to the IT department, demonstrating their awareness and vigilance.

5. Follow-Up and Training

After the simulation, employees who fell for the phishing emails are directed to a landing page that explains the exercise and highlights the telltale signs they missed. This is often followed by additional security awareness training sessions to reinforce their understanding and improve their ability to recognize phishing attempts in the future. Regular reporting and analysis of the test results help organizations identify areas for improvement and adjust their training programs accordingly.

By integrating phishing simulations into their cybersecurity strategy, organizations can create a more resilient workforce that is better prepared to defend against sophisticated phishing attacks.

Phishing simulations offer numerous benefits that can significantly enhance an organization’s cybersecurity posture and defenses against phishing attacks. By conducting these simulated tests, companies can:

• Educate employees: Phishing simulations serve as a practical and immersive learning experience, helping employees develop the skills to recognize and respond appropriately to phishing attempts. This hands-on training is more effective than traditional classroom-style education.
• Reduce the likelihood of successful attacks: By improving employee awareness and vigilance through simulations, organizations can decrease the chances of employees falling victim to actual phishing attacks, minimizing the risk of data breaches and financial losses.
• Identify vulnerabilities: Phishing simulations provide valuable insights into an organization’s vulnerabilities by revealing which employees or departments are most susceptible to phishing attempts. This information enables targeted training and security improvements.
• Measure cybersecurity readiness: The results of phishing simulations serve as a benchmark for an organization’s overall cybersecurity readiness, allowing for data-driven decision-making and continuous improvement.
• Foster a security-conscious culture: Regular phishing simulations help cultivate a security-conscious culture within the organization, where employees actively identify and report potential threats.
• Comply with regulations: Many industries and regulatory bodies mandate regular security awareness training, and phishing simulations can help organizations meet these compliance requirements.
• Cost-effective prevention: Implementing phishing simulations is cost-effective compared to the potential financial and reputational damages resulting from a successful phishing attack.

By harnessing the benefits of phishing simulations, organizations can proactively strengthen their security posture against one of the most prevalent and dangerous cyber threats, ensuring the protection of sensitive data, systems, and overall business continuity.

Implementing phishing simulation training within an organization involves several key steps, from selecting the right tools to analyzing results and providing feedback. Here’s a comprehensive framework to help you set up an effective phishing simulation program.

Choosing the Right Phishing Simulation Tool

The first step in implementing phishing simulation training is selecting the appropriate tool. Numerous ​​​phishing simulation tools​ are available, each with different features and capabilities. Consider the following factors when investing in the right tool:

• Ease of Use: The simulation platform should be user-friendly and easy to set up.
• Customization: Look for tools that allow you to customize phishing emails and landing pages to mimic real-world scenarios.
• Reporting and analytics: The tool should provide detailed reports and analytics to help you measure the effectiveness of your simulations.
• Training integration: Choose a tool that offers integrated training modules to educate employees immediately after falling for a simulated phishing email.

Designing Effective Phishing Scenarios

Once you have selected a phishing simulation tool, the next step is to design effective phishing scenarios. Here’s how to do it:

• Set clear goals: Define what you want to achieve with each simulation, such as increasing the reporting rate of phishing emails or reducing the click-through rate on malicious links.
• Choose realistic scenarios: Use scenarios ​​relevant to your organization and mimic real-world phishing attacks. ​These​​​ could include fake invoices, password reset requests, or messages from trusted entities like banks or online services.
• Craft convincing emails: Create phishing emails that look authentic and include psychological triggers such as urgency and trust. Use familiar logos, fonts, and color schemes to make the emails more convincing.

Scheduling and Executing the Simulations

After designing your phishing scenarios, it’s time to schedule and execute the simulations:

• Notify employees: Inform employees about the phishing simulation program and the expected behavior, such as reporting suspicious emails to the security team.
• Schedule simulations: Plan the timing of your simulations. It’s recommended to send at least one simulated phishing email per month, but you can customize the frequency based on your organization’s needs.
• Launch the campaign: Execute the phishing simulation by sending the crafted emails to the selected employees. Ensure that the emails are delivered during working hours to maximize engagement.

Analyzing Results and Providing Feedback

Once the simulation is complete, analyze the results and provide feedback to employees:

• Monitor responses: Track how employees interact with the phishing emails, including who clicked on links, downloaded attachments, or reported the emails.
• Evaluate effectiveness: Use the collected data to evaluate the effectiveness of the simulation. Identify areas where employees performed well and areas that need improvement.
• Provide immediate training: Deliver immediate training to employees who ​fall​​​ ​victim to​​​ phishing emails. This training should be interactive and explain how they were tricked and what to look for in the future.

Best Practices for Phishing Simulations

​​​Below​​,​​ we have outlined several best practices and recommendations based on our experiences helping thousands of ​​customers ​​run phishing simulations smoothly.​​

​​​Before Going Live:​​

• ​​​Safelist appropriately and run a test ​​on​​​​ a handful of staff in your department to make sure the phishing simulations are delivered as intended.​​
• ​​​If you have a help desk or similar internal service, ​​notify​​​​ them ​​about the simulated phish before you send it out; do this every time.​​
• ​​​As appropriate, consider​​​​ keeping another designated group of people​​, such as human resources, high-level management​​, or others, informed about the simulation​​​​.​​
• ​​​If you’re sending a simulated phish mimicking another internal department, ​​ask for their​​​​ permission and get them to approve the final content.​​
• ​​​For simulations reaching international audiences, consider finding stakeholders in those areas who are familiar with the culture and can review phishing simulation content to ensure it’s relevant.​​

​​​​Starting the Phishing Simulation Program:​​​

​​​​When you send your first simulated phish, send users to a 404 error page to get a solid baseline of user vulnerability to start. Then, after you’ve sent this “blind phish​​​​:​​​​”​​

• ​​​​Send a notification introducing users to the program and ​​​​its ​​​​goals​​​​. Check with your chief information security officer (CISO), chief information officer (CIO), or other C-level executive to​ see if ​​​​they can send ​​the message​​​​​​.​​​
• ​​​​Next, identify your most ​​attacked people or users ​​​​who are engaging in​ real attacks​​ to focus your simulations or provide more targeted risk-reduction efforts to these populations.​​​
• ​​​​Finally​, ​​work with other departments or colleagues​​ to measure real security impacts from users before and after the program is implemented to demonstrate the return on investment for your efforts — such as computer remediations from ​​malware​​, successful phishing attacks, and credential breaches.​​​

​​​​As the Program Progresses:​​​

​​​​Ensure you have a good cadence. We recommend at least one phishing simulation every 4-6 weeks, and more if possible. As your program evolves, you’ll want to:​​​

• ​​​​Send more targeted phishing attacks​​​​. For​​​​​​​​ instance, use specific templates based on real attacks for certain departments and populations​​​​, such as​​​​​​​​ VAPs.​​​
• ​​​​Consider auto-enrolling users who fall for simulations in education to build their skills.​​​
• ​​​​Implement a ​​phishing reporting tool​​ to make it easy for users to report suspicious messages.​​​

​​​​For users who are “repeat clickers,” consider having a one-on-one meeting to understand why they’re engaging with potentially malicious messages and ​​​​​​reiterate the importance of your program. Also, be sure to share stories about or reward users who are reporting simulations or even actual attacks. That can gamify your program and encourage more positive behavior.​​​​​

​​​​According to Proofpoint’s Kimberly Pavelich and Debbie Rich, “As people become more sophisticated at detecting phishing (and all its variations), attackers find new ways to embed malicious content. That is why it is imperative for security practitioners to transform real-world threats into relevant training and awareness initiatives.” See their post on ​​4 Best Practices for Relevant Threat-Driven Security Awareness​​ for more insights.​​​​​​​​​

​​​​​​While phishing simulations offer numerous benefits, organizations may face several challenges when implementing them. Addressing these challenges is crucial for ensuring the effectiveness and success of the program.​​

​​​Employee Resistance and Engagement​​

​​​One of the primary challenges is overcoming employee resistance and fostering engagement. Some employees may perceive phishing simulations as entrapment or the organization’s lack of trust. Others may feel embarrassed or demotivated if they fall for a simulated phishing attempt.​​

​​​To overcome this challenge, it’s essential to communicate the purpose and benefits of phishing simulations transparently. Emphasize that the goal is to educate and protect employees, not to catch them off guard or reprimand them. Encourage a culture of continuous learning and provide positive reinforcement for those who report simulated phishing attempts.​​

​​​Establishing Realistic Simulations​​

​​​​Another significant challenge is creating realistic and convincing phishing simulations​​​​​​. If the simulations are too obvious or unrealistic, employees may become complacent or dismissive, undermining the training’s effectiveness.​​

​​​To address this, organizations should invest in high-quality phishing simulation tools that enable customization and personalization. Leverage real-world phishing examples and techniques cyber​​​ ​​​criminals use to craft convincing scenarios. Additionally, regular updates and diversification of the simulations should be made to keep employees on their toes and prevent them from recognizing patterns.​​

​​​Maintaining Engagement and Continuity​​

​​​​It can be challenging to sustain employee engagement and ​​​ensure​​​​​​​ the continuity of the phishing simulation program​​​​​​. Over time, employees may become desensitized or lose interest, leading to a decline in vigilance and participation.​​

​​​To maintain engagement, consider gamifying the phishing simulation experience by introducing leaderboards, rewards, or incentives for those who consistently identify and report simulated phishing attempts. Additionally, the simulation scenarios, timing, and delivery methods must be varied to keep employees engaged and prevent complacency.​​

​​​Addressing High-Risk Employees​​

​​​Identifying and addressing high-risk employees who consistently fall for phishing simulations can be a delicate matter. While providing additional training and support is important, organizations must be cautious not to single out or demotivate these employees.​​

​​​One approach is to offer personalized coaching and targeted training modules for high-risk employees. Additionally, consider implementing temporary security measures, such as restricting access to specific systems or requiring additional authentication factors, until the employee demonstrates improved awareness.​​

​​​Here are a few notable real-world case studies of organizations that have implemented phishing simulations and the positive impact these programs have had:​​

​​​Royal Bank of Scotland​​

​​​The Royal Bank of Scotland (RBS) implemented Proofpoint’s Security Education Platform, ​​​which includes phishing simulations and interactive training modules. By conducting regular phishing assessments and automatically enrolling employees in targeted training based on their performance, RBS achieved a remarkable ​​reduction of over 78% in phishing susceptibility​​ ​​​among its 80,000 employees. The program not only improved employee awareness but also reduced the number of successful cyber-attacks infiltrating the organization, easily paying for itself.​​

​​​Northeastern US College​​

​​​A college in the northeastern United States faced five to six successful malicious phishing attacks every month before adopting Proofpoint’s ​​Anti-Phishing Training Program​​. After implementing simulated phishing attacks and interactive training modules, the college witnessed a ​​90% reduction in successful phishing attacks​​. The training helped break the misconception among some staff that they were immune to phishing threats, fostering accountability and proactive reporting of suspicious emails.​​

​​​Large Italian Hospital​​

​​​In a yearlong phishing simulation exercise conducted at a major Italian hospital with over 6,000 employees, researchers compared the effectiveness of a context-specific phishing email versus a general one from a simulation provider. ​​The study​​ highlighted the importance of management commitment, effective communication with staff, and the need for ongoing simulations to reinforce learning and measure progress over time.​

​​​​Proofpoint Assess​​ offers a data-driven security awareness platform that combines advanced phishing simulations with targeted training to strengthen organizations’ human defense layer. The platform enables organizations to launch sophisticated phishing campaigns that mirror real-world attacks, using thousands of templates based on Proofpoint’s threat intelligence gathered from analyzing tens of billions of messages daily. These simulations extend beyond email to include SMS, USB, and other attack vectors, allowing organizations to test multiple threat channels.​​​

​​​​The platform’s integrated approach combines with ​​Proofpoint’s Email Security​​ service to uncover Very Attacked People™ while continuously monitoring user behavior to identify top clickers and repeat offenders. This intelligence drives automated enrollment of high-risk users into targeted training programs, ensuring focused intervention where needed most. The system delivers predefined adaptive learning assessments covering cybersecurity and compliance topics, automatically enrolling users who fail simulations into additional training modules.​​​

​​​​The platform evaluates security culture by measuring employee responsibility in preventing cybersecurity threats, assessing personal threat awareness and impact understanding, and gauging user empowerment in identifying and reporting suspicious behavior. This dynamic approach adjusts phishing tests based on individual risk profiles, creating a personalized learning experience that evolves with each user’s performance and needs.​​​

​​​​Through this comprehensive approach, Proofpoint enables organizations to build and maintain a strong security-aware culture across their workforce while delivering a resilient security awareness program that adapts to emerging threats and reduces human risk. ​​​​​

Learn more about Proofpoint’s managed security awareness solutions or get in touch by contacting Proofpoint today.