How HR Protects Small and Medium-Sized Businesses Against Phishing

March 17, 2025

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In 2023, web services were the most targeted by phishing attacks, making up more than 24 percent of all financial phishing incidents around the world. Delivery companies came in second place, with nearly 16 percent of the attacks aimed at them. Global internet portals were close behind, accounting for 14.46 percent of the phishing attacks during that same year.

As an HR leader, this is a direct threat to your workforce since your employees are the first line of defense, but without the right awareness, they’re also the most vulnerable.

Phishing attacks show up as emails, messages, or websites that look legitimate but aren’t. They target you and your team to steal login credentials, financial data, and personal information. The consequences can be severe—disrupting operations, draining finances, and damaging your company’s reputation.

Small and medium-sized enterprises are top targets for phishing attacks. Cybercriminals make fake emails, messages, or websites that look real to trick employees.

While big companies usually have special teams to handle security, smaller businesses don’t have the same resources to protect themselves, presenting HR leaders with the need to be aware of these threats, know how to spot them—and train their employees for resilience against these attacks.

Read on to learn more about this topic and:

  • Discover new tactics and strategies malicious actors are using to gain privileged access

  • Explore how HR leaders for small and medium-sized enterprises can nurture the right capabilities against phishing attacks

Employees Are the Primary Target

Cybercriminals now use many different platforms to steal user login details, including popular tools like WhatsApp, Slack, Twitter, and LinkedIn. They also use advanced tricks like web session hijacking, personalized emails, hidden links, and email thread hijacking. To stay undetected, they now use methods like Voice over IP (VoIP), text messages (SMS), and instant messaging (IM). These tactics help them bypass security and fool users.

Because of these new methods and the growing sophistication of attacks, even beginner hackers can now bypass detection systems. Modern technology also lets cybercriminals automate the creation of fake emails and webpages, making it simple to launch highly targeted attacks, even against small businesses.

One common method hackers use is called spear phishing. In this approach, they research a specific person or small group to gather details that make their fake emails seem more believable. Another advanced technique, called man-in-the-middle attacks, involves intercepting emails between two people. Once they’ve done this, the hacker communicates directly with the victims to steal sensitive information.

A newer tactic involves hiding threats in what looks like safe communication on a trusted website. For example, attackers used Adobe InDesign’s trusted reputation to hide a malicious link inside an iframe on a legitimate Adobe webpage. They send emails asking users to click a link to view a shared document. When users click, they are taken to a fake page on the real Adobe site. The hidden link in the iframe can trick many email security systems, allowing the attackers to steal login credentials without being detected.

Create a Security-First Culture

While there’s no perfect way to stop all attacks, small and medium-sized enterprises must stay very alert and take strong steps to protect themselves by adding extra security measures. They should also adopt an “assumed breach” mindset, meaning they prepare as if a cyberattack will happen. This helps build a culture of cyber resilience, which is an ongoing effort made up of five key steps: identify, protect, detect, respond, and recover. 

It begins with expecting breaches and ends with creating a strong foundation to handle cyber threats.

It’s crucial to regularly test for phishing risks and weaknesses by running phishing simulations. These tests help employees recognize and avoid phishing attempts. Businesses should also use two-factor authentication, which adds an extra layer of security. 

For even stronger protection, combining hardware-based multifactor authentication with biometrics—like fingerprint or facial recognition—can provide an additional barrier against cyber criminals.

HR oversees hiring, onboarding, training, and policy enforcement—all of which influence how employees handle cyber threats.

Mistakes like clicking on a malicious link, downloading an infected attachment, or entering login credentials on a fake website can lead to dangerous outcomes such as financial loss, data breaches, and reputational damage.

HR should regularly remind employees about phishing risks, helping them spot red flags like mismatched emails, odd wording, or urgent requests for private data. Ongoing cybersecurity training should teach safe email habits, like avoiding suspicious links and reporting strange messages to IT. A clear reporting process ensures employees know how to flag phishing attempts—because reporting a false alarm is always better than a security breach.

To manage insider risks, take proactive steps at every stage of employment. Run detailed background checks to catch past security issues or red flags before hiring. Once employees join, watch for sudden changes in behavior—unusual access requests or policy violations—and set up clear channels for reporting concerns. If a breach happens, investigate thoroughly by reviewing the employee’s actions, talking with coworkers about overlooked red flags, and working with legal experts to decide the next steps. After an incident, update your protocols to prevent future issues, because early detection and a fast response are critical to reducing insider threats.

Reduce Risk Through Simulated Phishing Tests

HR can work with IT teams to conduct phishing simulations. These tests involve sending fake phishing emails to employees to assess their awareness. If an employee clicks on a deceptive link, they can receive additional training to reinforce security best practices. 

Pick a platform that lets you send fully automated fake phishing attacks and provides templates you can customize to fit your needs. Train your users by giving them access to libraries filled with up-to-date, interesting, and interactive security awareness content. Also, choose a platform that uses artificial intelligence (AI) to suggest phishing simulations and training based on each user’s past behavior, making the learning process more effective. Use regular assessments to measure how well your team understands security concepts and to check their attitudes toward cybersecurity culture.

Over time, these simulations help employees develop the skills needed to identify and avoid real phishing attempts.

The Bottom Line

Although it can be prevented through proper training and awareness, phishing is one of the most dangerous cybersecurity threats for small and medium-sized enterprises. 

HR leaders are key to teaching employees, enforcing security rules, and building a culture of awareness; that’s why they must focus on security by using smart HR strategies, regular phishing tests, and AI-driven training. Adding phishing awareness to training and policies helps HR protect companies from cyber criminals and expensive security breaches.

This approach meets regulations and turns potential weak spots into alert, informed defenders.

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