You open your inbox on a Monday morning and see an urgent message from your CEO asking you to wire funds to a new vendor. The email looks legitimate, the tone feels right, and the request seems reasonable. But something is off. That email did not come from your CEO at all. It came from a cybercriminal halfway around the world, and clicking that link or following those instructions could cost your company thousands of dollars.

This scenario plays out in offices every single day. Learning how to spot phishing emails is one of the most important skills any employee can develop, regardless of their job title or technical background. In this guide, we will walk you through exactly what phishing is, how to recognize it, and what to do when a suspicious message lands in your inbox.

What Is Phishing?

Phishing is a type of cyber attack where criminals send fraudulent emails designed to trick you into taking a harmful action. That action might be clicking a malicious link, downloading an infected attachment, entering your login credentials on a fake website, or transferring money to an account controlled by the attacker.

The word "phishing" comes from the idea of casting bait and waiting for someone to bite. Attackers send out emails that impersonate trusted sources such as your bank, a well-known company like Microsoft or Amazon, a government agency, or even a colleague sitting two desks away from you. The goal is always the same: get you to act before you think.

Phishing falls under the broader category of social engineering attacks, which rely on manipulating human behavior rather than exploiting software vulnerabilities. That means your awareness is the most effective defense your organization has.

Why Small Businesses Are Prime Targets

There is a common misconception that cybercriminals only go after large corporations. The reality is quite different. Small and medium-sized businesses are disproportionately targeted because attackers know that smaller organizations typically have fewer security resources, less formal training programs, and employees who wear many hats and may not have time to scrutinize every email carefully.

Consider these facts: nearly half of all cyber attacks target businesses with fewer than 250 employees, and the average cost of a successful phishing attack on a small business can exceed $100,000 when you factor in downtime, data recovery, legal fees, and reputational damage. For many small businesses, a single successful attack can threaten the entire operation.

The good news is that you do not need an enterprise-level security budget to defend against phishing. You need employees who know what to look for. That starts with understanding the warning signs.

The 7 Red Flags of a Phishing Email

Not every phishing email is obvious. Some are remarkably well-crafted. However, most phishing attempts share common characteristics that you can learn to recognize. Here are seven red flags to watch for every time you open an email.

  1. A suspicious or mismatched sender address. The display name might say "Microsoft Support" but the actual email address could be something like support@micr0soft-help.xyz. Always check the full email address, not just the name that appears in your inbox. Look for misspellings, extra characters, or domains that do not match the organization the sender claims to represent.
  2. Urgent or threatening language. Phishing emails frequently create a false sense of urgency. Phrases like "Your account will be suspended in 24 hours," "Immediate action required," or "You must verify your identity now" are designed to make you panic and act without thinking. Legitimate organizations rarely demand instant action through email alone.
  3. Generic greetings. An email that begins with "Dear Customer," "Dear User," or "Dear Account Holder" rather than your actual name is a strong signal that the sender does not actually know who you are. Most companies you have a relationship with will address you by name.
  4. Suspicious links. This is one of the most critical checks you can perform. Before clicking any link in an email, hover your mouse over it and look at the URL that appears in the bottom-left corner of your browser or email client. If the displayed link text says "www.yourbank.com" but the actual URL points to something like "www.yourbank-secure-login.phishsite.com," do not click it. The real destination and the displayed text should match.
  5. Unexpected attachments. Be extremely cautious with email attachments you were not expecting, especially file types like .zip, .exe, .docm, or .xlsm. Even a PDF or Word document can contain malicious code. If a colleague or vendor sends you an attachment you were not anticipating, verify with them through a separate communication channel before opening it.
  6. Poor grammar, spelling errors, and awkward formatting. While phishing emails have become more polished over the years, many still contain noticeable errors. Misspelled words, odd sentence structure, inconsistent formatting, and low-resolution logos are all clues that something is not right. A legitimate email from your bank is unlikely to have typos in it.
  7. Offers that are too good to be true. If an email tells you that you have won a prize you never entered, that you are receiving a surprise tax refund, or that a stranger wants to share a large sum of money with you, it is almost certainly a scam. If it sounds too good to be true, it is.

Real-World Examples of Phishing Emails

Understanding the red flags in the abstract is helpful, but seeing how they show up in practice makes them easier to catch. Here are three phishing scenarios that regularly appear in business inboxes.

The Fake Invoice

An email arrives from what appears to be a vendor your company works with. The subject line reads "Invoice #29847 - Payment Overdue." The message urges you to open the attached PDF to review the outstanding balance and make payment immediately. The sender address is off by one letter compared to the real vendor, and the attachment contains malware designed to steal credentials from your computer. The real vendor never sent you that invoice.

The Password Reset Request

You receive a message that looks like it comes from Microsoft 365 or Google Workspace telling you that suspicious activity has been detected on your account. A large blue button reads "Reset Your Password Now." Hovering over the button reveals that it leads to a website that is not affiliated with Microsoft or Google at all. Clicking it would take you to a convincing replica of the login page, where entering your credentials hands them directly to the attacker.

The CEO Request

Your boss, or someone pretending to be your boss, sends a short email: "Are you at your desk? I need you to process a wire transfer for a new vendor. It is time-sensitive and confidential, so please handle it directly and do not discuss with anyone else." This is a classic example of business email compromise, where attackers impersonate executives to authorize fraudulent transactions. The request for secrecy and urgency are major warning signs.

What to Do When You Spot a Phishing Email

Recognizing a phishing email is only half the job. Knowing how to respond correctly is equally important. Follow these steps every time you encounter a message that looks suspicious.

  1. Do not click any links or open any attachments. This is the most important step. Even if you are curious, resist the urge to click. A single click can initiate a malware download or redirect you to a credential-harvesting site.
  2. Do not reply to the email. Responding confirms to the attacker that your email address is active and monitored, which makes you a more attractive target for future attacks.
  3. Report the email to your IT team or manager. Most organizations have a process for reporting suspicious emails. Some email clients have a built-in "Report Phishing" button. If yours does not, forward the email to your designated IT contact or security team. Reporting is critical because it helps protect your coworkers who may receive the same message.
  4. Delete the email from your inbox. After you have reported it, remove the email so you do not accidentally interact with it later.
  5. If you already clicked something, act immediately. If you realize you clicked a phishing link or opened a suspicious attachment, do not wait. Disconnect from the network if possible, change your passwords starting with the most sensitive accounts, and contact your IT team right away. Speed matters in limiting the damage.

Building a Phishing-Aware Culture

Spotting phishing emails is not just an individual responsibility. It is something that works best when the entire team is engaged. Organizations that build a culture of security awareness are far more resilient against phishing attacks than those that rely on a single training session once a year.

Here are the key elements of a phishing-aware workplace:

  • Adopt a no-blame reporting policy. Employees should never feel embarrassed or afraid to report a suspicious email, even if they already clicked on something. Punishing people for falling for a phishing attempt discourages reporting and allows attacks to spread further. Instead, treat every report as a learning opportunity and thank the person for speaking up.
  • Conduct regular training. Cyber threats evolve constantly, and a training session from a year ago may not cover the techniques attackers are using today. Short, frequent training sessions are more effective than long annual presentations. Even five minutes a month keeps awareness sharp.
  • Run phishing simulations. Simulated phishing exercises give employees a chance to practice identifying suspicious emails in a safe environment. When someone clicks on a simulated phish, they receive immediate feedback that reinforces the lesson without any real-world consequences.
  • Make it easy to report. If reporting a suspicious email takes ten steps and three approvals, people will not bother. Provide a simple, one-click reporting mechanism and make sure everyone knows how to use it.
  • Share examples of real attacks. When your organization blocks a phishing attempt, share an anonymized version with the team. Understanding how attackers craft messages that target your specific industry or company makes the training far more relevant. For a deeper look at how these manipulation tactics work, explore our guide on social engineering attacks and how employees get tricked.

The Bottom Line

Phishing remains the number one method cybercriminals use to breach organizations of every size. The attacks are growing more sophisticated, more targeted, and more convincing. But the fundamental defense has not changed: an informed, alert employee who pauses before clicking is the strongest layer of protection any business can have.

By learning to recognize the warning signs outlined in this guide, you are already ahead of the curve. Remember to check sender addresses carefully, question any message that creates urgency or fear, hover over links before clicking, and report anything that looks suspicious. These small habits take seconds but can save your organization from devastating financial and reputational damage.

Phishing attacks often escalate into more damaging schemes, including business email compromise, which specifically targets financial transactions and can drain company accounts in a single wire transfer. Knowing how to spot the initial phishing email is frequently what stops these larger attacks from succeeding.

If your organization does not have a regular cybersecurity training program in place, now is the time to start. CyberLearningHub offers practical, bite-sized training modules and realistic phishing simulations designed specifically for small and medium-sized businesses. When every employee knows how to spot phishing emails, your entire organization becomes significantly harder for attackers to penetrate.