Table of Contents
In Short
- Phishing emails mimic trusted sources to trick businesses into sharing confidential data or authorising payments, leading to data breaches or financial losses.
- Legal risks include breaches of the UK GDPR and potential ICO reporting obligations within 72 hours.
- Employee training and clear procedures are essential for prevention.
Tips for Businesses
Train employees to spot phishing attempts, encourage immediate reporting, and implement security measures like multi-factor authentication. Regularly review public information to limit what attackers could exploit. Anti-spoofing controls and vigilant oversight further protect against phishing risks.
Phishing emails are scams that can be dangerous and a severe threat, aiming to trick your business. For instance, they may entice your staff to share confidential information or authorise payments. These emails can, therefore, pose serious financial, reputational, and legal risks to your business. This article explores phishing emails, some key data privacy law risks they can cause, and the steps your business should take to protect itself.
What is Phishing, and How Does It Impact Your Business?
Phishing emails are high-risk. They can look like legitimate communications from trusted sources, such as banks, suppliers, or internal colleagues. These emails often prompt you to take urgent actions (such as clicking a link, entering details, or sharing sensitive data).
Cybercriminals can also use targeted approaches, leveraging personal details to appear credible, increasing the risk. By exploiting system vulnerabilities and human error, cybercriminals can use phishing to cause a range of problems, such as data breaches, financial losses, and reputational damage to your business.
This factsheet sets out how your business can become GDPR compliant.
What Legal Risks Does Phishing Pose to Your Business?
A range of risks can arise from phishing emails, particularly data privacy risks.
Phishing can, for example, lead to data breaches that expose your business to significant contractual and litigation risks, especially when client data or sensitive information is compromised. Managing these risks is vital for commercial companies, and you should implement robust contractual terms that allocate liability in case of data breaches.
Phishing emails that compromise personal data can lead to significant risks under data protection law rules. A business must secure personal data effectively, including the UK GDPR rules and the Network and Information Systems (NIS) Regulations. If a phishing attack results in a data breach affecting individuals’ personal data, your business may need to report it to the Information Commissioner’s Office (ICO) within 72 hours if it is reportable.
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How Can Your Business Guard Against the Risks of Phishing Attacks?
Proactive measures can reduce phishing risks for your business. The UK ICO has issued guidance for companies on protecting against phishing attacks.
Some key steps your business can follow to help reduce risk include the following:
Train Employees and Raise Awareness of Risks
Your business should ensure all employees are trained to recognise phishing emails and feel encouraged to report suspicious activity without fear of blame. Make staff well aware of key warning signs, such as unusual requests or unfamiliar URLs, so they stay alert to potential phishing attempts.
Establish Clear Reporting Processes
Your business should set up straightforward reporting procedures to ensure staff know when and how to report phishing incidents. Prompt reporting allows you to act quickly, reducing the chance of further impact.
Use Multi-Factor Authentication (MFA)
Your business should enable MFA wherever possible to add an extra layer of security. MFA can help you prevent unauthorised access, even if someone’s login credentials are compromised.
Limit Publicly Available Information
Your business should regularly review what information is publicly accessible about it, such as on social media or your website. You should avoid sharing unnecessary details that attackers might exploit to tailor their phishing attempts.
Set Up Anti-Spoofing Controls
Your business can implement anti-spoofing controls, which help prevent attackers from impersonating your domain and reduce the risk of fraudulent emails appearing legitimate to staff or clients.
To help protect yourself from risk, you should also review guidance from the National Cyber Security Centre on preventing phishing attacks.
By following these steps, your business will be better positioned to strengthen itself against phishing attacks. Unfortunately, the risk cannot be entirely eliminated, and you should always remain vigilant about potential phishing threats.
Key Takeaways
Phishing is an increasingly prevalent risk for business, with most companies vulnerable to attack. Using proactive measures such as employee training can help your business limit phishing risks. It is vital to stay vigilant to the threat of phishing emails and take active steps to protect your business from its dangers.
If you need advice on protecting your business from cyber risks, LegalVision’s experienced regulatory and compliance lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Phishing emails mimic legitimate sources, deceiving recipients. By appearing to come from trusted contacts, these emails can bypass defences and lead to serious security breaches.
Yes. Your business should train staff to recognise phishing emails and foster a culture around reporting suspicious activity.
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