What is phishing and how does it work?

Binance Academy · 2023-05-11T02:26:35.000Z
Phishing is a type of cyber attack where the attacker poses as a reputable entity or company in order to trick people and collect their sensitive information such as credit card details, usernames, passwords, etc. Because phishing involves psychological manipulation and relies on human failure rather than hardware or software, it is considered a type of social engineering attack.
Summary
Phishing is a malicious practice in which attackers disguise themselves as trustworthy entities to trick individuals into revealing sensitive information.
You can guard against phishing activity by recognizing some common signs such as suspicious URLs and urgent requests for personal information.
You should understand various phishing tactics, from common email scams to sophisticated spear phishing, to strengthen your cyber defense and security.
the introductionPhishing is a malicious tactic in which ill-intentioned people pretend to be trustworthy sources to trick people into gaining access to sensitive data. In this article, we will shed light on phishing and answer the questions: what is phishing, how does it work, and what can you do to avoid falling prey to such fraudulent activities.
How is phishing done?Phishing relies primarily on social engineering, a method used by attackers to manipulate individuals into revealing confidential information. Attackers collect personal details from public sources (such as social media) to craft emails that appear genuine. Victims often receive malicious messages that appear to be sent by them. From familiar contacts or reputable organizations.
Emails containing malicious links or attachments are the most common type of phishing, and clicking on these links may install malware on a user's device or direct individuals to fake websites designed to steal personal and financial information.
Since poorly worded phishing emails are easy to spot, cybercriminals are using advanced tools like chatbots and AI voice generators to go undetected in their fraudulent attacks, making it difficult for users to distinguish between genuine and fraudulent correspondence.
Identify phishing attemptsRecognizing phishing emails can be difficult, but there are some signs that can help you spot them.
Common signsYou should exercise caution if the message contains suspicious URLs, uses generic email addresses, creates a sense of fear or urgency, involves a request for any personal information, or contains spelling and grammatical errors, and in most cases, you should pass the cursor. Click links to check URLs without actually clicking on them.
Electronic payment fraudFraudsters often impersonate trusted online payment service providers such as PayPal, Venmo or Wise. As users receive fraudulent emails urging them to verify their login details, it is essential to constantly be vigilant and report any suspicious activity.
Phishing attacks based on financial activitiesScammers pose as banks or financial institutions and claim security breaches to obtain personal information. Common tactics include phishing emails about money transfers or direct deposit scams targeting new employees. They may also claim an urgent security update.
Work-related phishing scamsIn these scams, attackers pose as managers, CEOs, or CFOs, demanding bank transfers or fictitious purchases from individuals. Voice phishing using AI voice generators over the phone is another method used by scammers.
How to prevent phishing attacksWe recommend taking several security measures to prevent phishing attacks. You should not click directly on any links you receive. Instead, you can go to the company's official website or communication channels to check whether the information you received is real or fake, and you can consider using security tools. Such as antivirus software, firewalls, and spam filters.
In addition, organizations should use email authentication standards to verify incoming emails. Common examples of email authentication methods include DKIM (Domain Key Identified Mail) and DMARC (Domain-Based Message Authentication, Reporting, and Reconciliation).
Individuals should inform their family and friends about the risks of phishing, and companies should educate employees about phishing tactics and provide awareness courses/training sessions on a regular basis in order to reduce the risks.
If you need more help and information, we recommend looking to government initiatives like OnGuardOnline.gov and organizations like the Anti-Phishing Working Group to find more detailed resources and guidance on spotting, avoiding, and reporting phishing attacks.
Types of phishingPhishing techniques are evolving, as cybercriminals use various methods, and the different types of phishing are usually classified according to the target and the attack vector, and we present some types below.
Clone phishingThe attacker uses one of the original, healthy emails that was previously sent and copies its contents to create a similar message containing a link to a malicious site. The attacker may also claim that this link is up-to-date or new, stating that the previous link was invalid or expired.
Spear phishingThis type of attack focuses on one person or organization. A spear attack is more complex than other types of phishing because it is based on collecting information and exploiting it to achieve the goal. The attacker first collects information about the victim (for example, the names of friends or family members) and uses This data is to trick the victim into opening a malicious file on a website.
Forging addressesThe attacker attempts to corrupt the Domain Name System (DNS) record, resulting in visitors to an authentic website being redirected to a fake website created by the attacker. This type is the most dangerous because the DNS records are not under the user's control, which It makes the user powerless to resist.
WhalingIt is a form of spearphishing that targets wealthy people and VIPs, such as CEOs and government officials.
Email spoofing.Phishing emails usually come in the form of fake communications that mimic authentic companies or individuals. Phishing emails may direct victims to open links to malicious sites, enabling attackers to collect login credentials and personal identification information using fake login pages that may be difficult to detect. Pages may contain Trojan viruses, keyloggers, and other malicious scripts that steal personal information.
RedirectsThe redirects send the user to a different URL than the one they intended to visit, and attackers exploit the vulnerabilities to insert redirects and install malware on users' computers.
Scope typoDomain misspelling directs traffic to fake websites that use foreign language spellings, common misspellings, or top-level domain nuances. Scammers use domains to mimic genuine website interfaces, exploiting users who mistype or misread a URL.
Fake paid adsPaid ads are one of the methods used for phishing, as these (fake) ads use domains that attackers intentionally made a typo on and purchased to appear in search results, and the site may appear at the top of search results on Google.
Watering hole attackFraudsters analyze users and determine which websites they visit most frequently, scan those sites for vulnerabilities and attempt to insert malicious scripts designed to target users the next time they visit that website.
Impersonation and false giftsThis involves impersonating social media influencers. Scammers may impersonate key leaders of companies and announce giveaways or engage in other deceptive practices. Victims of this scam may be targeted individually through social engineering operations aimed at finding users who are easy to fool. Fraudsters may be able to hack into verified accounts and modify the username to impersonate a real person while maintaining the verified status of the account.
Fraudsters are now increasingly targeting platforms like Discord,
Malicious applicationsScammers may also use malicious apps to monitor your behavior or steal sensitive information. The apps may come to you as price trackers, wallets, and other crypto-related tools (that have a user base willing to trade and own cryptocurrencies).
SMS and voice phishingPhishing may occur via SMS or voice messages that encourage users to share personal information.
Phishing vs. address spoofingSome people think that forging addresses is one of the phishing attacks, but it depends on a different mechanism. The main difference between phishing and forging addresses is that phishing requires the victim to make a mistake, while forging addresses only requires an attempt to access an authentic website that exposes the name system log. Its domains can be compromised by an attacker.
Phishing in the field of blockchain and digital currenciesWhile blockchain technology provides strong data security due to its decentralized nature, blockchain users should always guard against social engineering and phishing attempts, as cybercriminals often attempt to exploit human vulnerabilities to gain access to private keys or login data. In most cases, scams are based on to human error.
Scammers may also try to trick users into revealing their seed phrases or transfer money to fake addresses, so be careful and follow security best practices.
Concluding thoughtsIn conclusion, it is necessary to understand phishing and constantly be aware of advanced technologies to protect personal and financial information. With the application of strong security measures and the spread of knowledge and awareness, individuals and organizations can protect themselves from the danger of phishing in our interconnected digital world. Stay safe!
Related articles5 tips to secure your digital currency balances
5 ways to enhance the security of your Binance account
How to stay safe in P2P trading
Disclaimer: This content is provided to you “as is” for general information and educational purposes only, without any representations or warranties of any kind. It should not be construed as financial, legal or other advice, nor is it intended as a recommendation to purchase any particular product or service. You must seek the help of specialized consultants to provide consultations. If the article is provided by a third party, please note that the opinions expressed are those of that third party and do not necessarily reflect the views of Binance Academy. Please read our full disclaimer here for more details. Digital assets may be subject to price fluctuations, the value of your investment may increase or decrease and you may not get back the amount you invested. You are solely responsible for your investment decisions and Binance Academy is not responsible for any losses you may incur. This article should not be construed as financial, legal, or professional advice. For more information, please see our Terms of Use and Risk Warning.