6 Common Social Engineering Attacks and How to Prevent Them

A hand reaches from a laptop screen displaying a blue lock pattern. Text reads "We Have Your Data Pay!" in cut-out letters, suggesting a ransom.

Jump to: How to Protect Your Business

Just this week, we have had to deal with Cyrpto fraud and compromised TFNs!

Every week, we have clients who suffer from financial loss or the inconvenience of trying to prove their identity.

It is very debilitating for business so it is very important to know the latest ways that you could be attacked

The Rise of AI and Cybercrime: A Double-Edged Sword

Artificial intelligence (AI) has transformed the way businesses operate.

From streamlining workflows to enhancing customer service, AI is revolutionizing productivity and efficiency.

However, cybercriminals are also harnessing AI, using it to execute sophisticated social engineering attacks that can compromise business security, finances, and reputations.

What is Social Engineering?

Social engineering manipulates human behavior to gain access to confidential data or secure systems. Unlike traditional hacking, which exploits technological weaknesses, social engineering preys on human emotions—trust, urgency, fear, or curiosity—to deceive individuals into revealing sensitive information.

Why is Social Engineering So Effective?

Social engineering is alarmingly successful because it targets people rather than technology. Cybercriminals use psychological tricks to manipulate individuals into making security mistakes.

In the first half of 2024, 30% of data breaches in Australia were caused by human error, according to the Office of the Australian Information Commissioner (OAIC).

Phishing alone accounted for 12% of all breaches. These numbers highlight the need for increased vigilance and cybersecurity awareness.

How AI is Supercharging Cybercrime

The Australian Signals Directorate (ASD) warns that cybercriminals are leveraging AI to carry out large-scale social engineering attacks.

AI enables them to:

Automate phishing attacks, making them more convincing and widespread.
Create deepfake images and videos to impersonate trusted individuals.
Bypass traditional security measures by mimicking legitimate communication patterns.

6 Common Social Engineering Attacks

Understanding these threats can help individuals and businesses recognize and respond to potential cyberattacks.

1. Phishing: The Classic Deception

Phishing is one of the most common cyber threats. Attackers send fraudulent emails, texts, or messages that appear to be from a legitimate source, tricking victims into clicking malicious links or providing login credentials.

Example: An email from a “bank” asking you to confirm your details on a fake login page.

2. Spear Phishing: Precision Targeting

Unlike generic phishing attacks, spear phishing is highly targeted. Attackers gather personal information to craft believable messages, often impersonating colleagues or managers.

Example: A request from your “CEO” asking you to urgently wire money to a vendor.

3. Pretexting: The Elaborate Lie

Pretexting involves creating a fabricated scenario to manipulate victims into revealing sensitive information.

Example: A scammer posing as an IT technician calls an employee, asking for login credentials to “fix” an urgent system issue.

4. Baiting: Curiosity Killed the Security

Baiting lures victims into compromising security by offering something enticing—such as free software downloads or infected USB drives labeled as “Confidential Payroll Data.”

5. Tailgating: The Physical Breach

Also known as “piggybacking,” tailgating involves an attacker physically entering a restricted area by following an authorized individual.

Example: A fake delivery person asks an employee to hold the door open for them, granting them unauthorized access to a secure building.

6. Deepfakes: The AI Illusion

Deepfake technology creates hyper-realistic videos or voice recordings that impersonate real people.

Example: A deepfake video of a CEO instructing employees to transfer funds to a fraudulent account.

A Real-World Case Study: The $329,000 Scam

A small business owner, Mr. Smith, received a call from a supposed bank representative warning of a security breach. Urged to act fast, he transferred $329,000 into an account controlled by scammers. While the bank’s fraud team recovered some funds, Mr. Smith was fortunate to have Cyber Liability insurance, which covered $99,000 in losses.

How to Protect Your Business

While cybercriminals evolve their tactics, businesses can implement strong security measures to mitigate risks.

Employee Training – Regular training can help employees recognize phishing emails, deepfake scams, and other social engineering tactics.
Promote a Security-First Culture – Encourage employees to double-check suspicious requests and report anything unusual.
Use Cybersecurity Tools – Multi-factor authentication (MFA), firewalls, and antivirus software can reduce the risk of attacks.
Invest in Cyber Liability Insurance – Insurance can help cover financial losses from cyber incidents, including social engineering fraud.

Social Engineering: A Growing Threat to Aussie SMEs

Cybercriminals are becoming more sophisticated, especially with AI at their disposal. Businesses must stay ahead by understanding these threats, educating employees, and implementing multi-layered security measures.

By taking proactive steps, SMEs can significantly reduce their risk of falling victim to social engineering attacks.