Top 10 Types of Phishing Attack UK Businesses Must Recognise in 2026

Phishing is no longer just about suspicious emails from foreign princes. Today's cybercriminals deploy a sophisticated arsenal of psychological and technical tricks designed to breach your company's defences. For UK small and medium-sized businesses (SMBs), where resources may be limited, a single successful attack can be catastrophic, leading to severe financial loss, data breaches, and irreparable reputational damage. Recognising the various types of phishing attack is the first and most critical step in building a resilient cybersecurity posture.

This guide moves past the basics to provide a comprehensive breakdown of the 10 most prevalent and dangerous phishing tactics threatening UK businesses today. We will dissect each method, from familiar email-based scams like spear phishing to more insidious techniques such as vishing and watering hole attacks. Understanding these threats is crucial because the methods of attack are constantly being refined by malicious actors. They exploit human trust and manipulate technical vulnerabilities with increasing precision.

Instead of offering generic advice, this article provides practical, actionable insights tailored for the SMB environment. For each type of phishing attack, you will learn:

• What it is: A clear, concise definition.
• How to spot it: Telltale indicators and real-world examples.
• The business impact: The potential consequences for your organisation.
• How to stop it: Specific detection steps, mitigation strategies, and recommended controls you can implement immediately.

This structured approach is designed to equip you with the knowledge needed to fortify your defences, train your employees effectively, and transform your team from a potential vulnerability into your strongest line of defence against these pervasive threats.

1. Email Spoofing and CEO Fraud

One of the most damaging types of phishing attack is CEO fraud, a sophisticated scam also known as Business Email Compromise (BEC). In this scenario, attackers impersonate a high-level executive, typically the CEO or CFO, to manipulate an employee into making an unauthorised financial transfer or revealing sensitive company data. The success of this attack relies on social engineering, exploiting the employee's willingness to quickly comply with a request from senior leadership.

Attackers often use email spoofing techniques, creating a fraudulent email address that is almost identical to the real one, perhaps by swapping a letter or using a different domain (e.g., ceo@yourcompanny.co.uk instead of ceo@yourcompany.co.uk). They will research company hierarchies on platforms like LinkedIn to identify their targets and craft a believable, urgent request, such as a last-minute payment to a new supplier.

Business Impact and Mitigation

The impact of CEO fraud can be devastating, especially for SMBs. A single successful attack can lead to direct financial losses ranging from thousands to millions of pounds. For example, in 2019, toy giant Mattel lost $3 million to a BEC scam. Many UK SMBs have reported losses between £6,000 and £75,000, which can cripple a small business.

To defend against this threat, UK businesses should implement a multi-layered defence:

• Establish Verification Protocols: Mandate a multi-person approval process for all fund transfers over a certain threshold. Crucially, this verification must happen via a separate communication channel, like a phone call to a known number or an in-person confirmation, never by replying to the original email.
• Implement Email Authentication: Use technical controls like SPF, DKIM, and DMARC to help your email system identify and block spoofed emails. These protocols validate that an email is genuinely from the domain it claims to be from.
• Deploy Advanced Security: Strong email security solutions can provide an essential layer of protection by using AI to detect anomalies in communication patterns and flagging suspicious sender behaviour.
• Conduct Regular Training: Train staff to recognise the hallmarks of CEO fraud, such as urgent language, requests for secrecy, and unusual payment instructions.

2. Spear Phishing

Unlike generic phishing campaigns that blast thousands of users, spear phishing is a highly targeted and personalised form of attack. Cybercriminals research their intended victim, often a specific individual or a small group within an organisation, to craft a message that appears legitimate and trustworthy. This reconnaissance involves scouring social media, professional networking sites like LinkedIn, and company websites to gather personal details.

The resulting email or message will often reference specific projects, colleagues, or recent company events to lower the recipient's guard. For example, an attacker might impersonate an IT manager and send an email about a "mandatory software update" for a system the target is known to use, complete with a malicious link. This level of personalisation makes spear phishing one of the most effective types of phishing attack.

Business Impact and Mitigation

The precision of spear phishing makes it incredibly dangerous. A successful attack can lead to severe data breaches, financial theft, and malware infections. In 2020, a spear phishing attack on Twitter employees enabled hackers to gain access to internal tools and compromise high-profile accounts. For UK SMBs, a single compromised employee can give attackers the foothold they need to access sensitive client data or company bank accounts.

Protecting your business requires a proactive and vigilant security posture:

• Conduct Advanced Security Training: Go beyond generic advice. Train employees to be sceptical of any email, even from known contacts, that contains an unexpected attachment or a link. Use simulated spear phishing campaigns to test their awareness and provide immediate feedback.
• Verify Unusual Requests: Just like with CEO fraud, establish a strict policy for verifying any request for sensitive information or fund transfers through a separate, trusted communication channel. A quick phone call can thwart a sophisticated attack.
• Monitor Digital Footprints: Encourage employees to be mindful of the information they share publicly online. The less personal or work-related data available on social media, the harder it is for attackers to craft a convincing spear phishing email.
• Deploy Endpoint Protection: Use advanced Endpoint Detection and Response (EDR) solutions. These tools can identify and block malicious activity on an employee’s computer, even if they accidentally click a malicious link.

3. Credential Harvesting

Credential harvesting is a widespread and highly effective type of phishing attack focused on one goal: stealing user login details. Attackers create convincing replicas of legitimate login pages for popular services like Microsoft 365, banking portals, or cloud platforms. These fake pages are distributed via email, tricking users into entering their usernames and passwords, which are then captured by the cybercriminals.

The sophistication of these fake pages makes them difficult to spot. For instance, a UK business might receive an email warning about a "file sharing" or "invoice" notification from SharePoint or OneDrive. The link in the email directs them to a pixel-perfect copy of the Microsoft 365 login screen. Once the credentials are submitted, the user is often redirected to the real document or a generic error page, leaving them unaware their account has been compromised.

Business Impact and Mitigation

The impact of a successful credential harvesting attack is severe. Stolen credentials grant attackers direct access to sensitive company data, email accounts, and financial systems. This access is then used for data theft, financial fraud, or as a launchpad for further attacks against your partners and clients, severely damaging your business's reputation and trust.

To defend against this common threat, UK businesses should prioritise access control and user awareness:

• Mandate Multi-Factor Authentication (MFA): This is the single most effective defence. Even if an attacker steals a password, they cannot access the account without the second verification factor (e.g., a code from a mobile app). You can learn more about two-factor authentication and its benefits.
• Train Staff Rigorously: Teach employees to always check the URL in the address bar before entering login details. They should look for subtle misspellings (e.g., microsft.com) and ensure the connection is secure (indicated by https:// and a padlock symbol).
• Utilise Password Managers: A password manager will only auto-fill credentials on the legitimate, recognised website. It will not fill in details on a fraudulent, look-alike domain, providing an excellent technical safeguard.
• Deploy Advanced Email Filtering: Modern security solutions can analyse links within emails in real-time, blocking access to known phishing sites and flagging suspicious URLs before they ever reach an employee's inbox.

4. Malware Distribution via Phishing

A primary goal of many phishing campaigns is to serve as a delivery mechanism for malicious software. In this common type of phishing attack, the email is engineered to persuade the recipient to download a file or click a link that infects their system with malware, such as ransomware, spyware, or banking trojans. The social engineering aspect is key, often disguising the payload as a benign document like an invoice, delivery notification, or urgent report.

These attacks are not just opportunistic; they are the initial entry point for some of the most destructive cyber threats. For instance, the infamous TrickBot banking trojan was widely spread through phishing emails, and many ransomware attacks, including attacks on UK NHS trusts, began with a single employee opening a malicious attachment. This technique effectively bypasses perimeter security by tricking a trusted user into unknowingly installing the malware themselves.

Business Impact and Mitigation

The impact of a malware infection can range from data theft and operational disruption to complete system lockdown in the case of ransomware. The financial and reputational damage can be catastrophic for an SMB, often leading to significant downtime and recovery costs. A successful malware deployment can paralyse a business in minutes.

To protect against malware-distributing phishing, UK businesses must adopt a robust, proactive defence strategy:

• Filter Dangerous Attachments: Configure your email gateway to automatically block high-risk file types, such as .exe, .scr, and often-abused container files like .zip or .iso. This creates a first line of defence before the email even reaches an inbox.
• Disable Macros by Default: Many malicious documents use macros to execute their code. Disable the execution of Office macros from internet sources by default across your organisation using Group Policy.
• Employ Advanced Threat Protection: Use email security solutions with sandboxing capabilities. Sandboxing automatically opens attachments and links in a secure, isolated virtual environment to test for malicious behaviour before delivery.
• Educate and Train Staff: Ongoing user training is vital. Teach employees to be suspicious of unexpected attachments, verify unusual requests through a separate channel, and recognise dangerous file extensions. This is a critical step in understanding how to prevent ransomware attacks.

5. Vishing (Voice Phishing)

Vishing, or voice phishing, is a type of phishing attack that leverages telephone calls instead of emails to deceive victims. Attackers impersonate trusted figures such as bank officials, IT support technicians, or even government agents from HMRC to manipulate an individual into revealing sensitive information or performing an action, like granting remote access to their computer. This method exploits the sense of urgency and perceived legitimacy that a direct phone call can create, often catching employees off-guard.

A common vishing tactic involves an attacker posing as a technician from Microsoft or your company's IT provider, claiming to have detected a virus on the employee's computer. They create a high-pressure situation, insisting that immediate action is required to prevent data loss. The goal is to panic the victim into providing login credentials or installing remote access software, giving the attacker a direct entry point into the company network.

Business Impact and Mitigation

The impact of a successful vishing attack can be severe, leading to compromised credentials, unauthorised network access, and significant data breaches. In the UK, Action Fraud reports that vishing scams frequently target businesses, with attackers tricking employees into transferring company funds. A single compromised employee can inadvertently provide the keys to your entire digital kingdom, resulting in financial loss and reputational damage.

To protect your business from this pervasive type of phishing attack, a clear and robust defence strategy is essential:

• Establish a "Hang Up and Call Back" Policy: Train all staff to never act on unsolicited phone requests for sensitive information or access. Instruct them to hang up, find the official phone number for the supposed organisation from a trusted source (like the company intranet or official website), and call back to verify the request.
• Zero Trust for Unsolicited Calls: Implement a strict policy that no employee should ever provide passwords, multi-factor authentication (MFA) codes, or financial details over an inbound phone call, regardless of who the caller claims to be.
• Verify Caller Identity Independently: If a caller claims to be from a supplier or partner, staff must use a known, verified contact number from your internal records to confirm the caller's identity and the legitimacy of their request. Never use a number provided by the caller themselves.
• Conduct Vishing Simulation Training: Periodically conduct simulated vishing calls to test employee awareness and reinforce training. This practical experience is highly effective at teaching staff to recognise and correctly respond to real-world threats.

6. Smishing (SMS Phishing)

Smishing, a portmanteau of "SMS" and "phishing," is a type of phishing attack that uses mobile text messages to deceive victims. Attackers send fraudulent SMS messages designed to trick recipients into clicking a malicious link, downloading malware, or revealing personal and financial information. This method is increasingly effective because people tend to trust text messages more than emails, and the urgent, concise nature of SMS often bypasses the usual scrutiny.

These attacks often impersonate trusted organisations like banks, delivery services, or government bodies. A common example in the UK involves fake messages from Royal Mail or DPD claiming a parcel requires a redelivery fee, directing the user to a bogus payment site. Other campaigns have impersonated banks like Barclays and HSBC, alerting customers to a suspicious transaction and providing a link to "verify" their account, which instead captures their login credentials.

Business Impact and Mitigation

For businesses, the threat of smishing extends to employees' personal and company-owned mobile devices. A successful attack can lead to compromised business accounts, stolen corporate data, or malware being introduced into the company network. As more businesses adopt mobile-first communication strategies, the attack surface for this type of phishing attack expands significantly, making mobile device security a critical concern.

To protect against smishing, UK businesses should adopt robust mobile security practices:

• Educate Employees: Conduct regular security awareness training that specifically covers smishing tactics. Teach staff to be wary of unsolicited texts, especially those creating a sense of urgency or asking for personal information or payments.
• Establish a "Do Not Click" Policy: Instruct employees to never click on links or call numbers from unexpected text messages. Instead, they should verify the request by navigating directly to the official website or using a known, trusted phone number.
• Report Suspicious Messages: Encourage employees to report suspicious SMS messages by forwarding them to 7726 (which spells SPAM on a phone keypad). This free service allows UK mobile operators to investigate and block malicious numbers.
• Implement Mobile Device Management (MDM): Use MDM solutions to enforce security policies on company-owned devices. This can include blocking access to known malicious websites and ensuring mobile operating systems are always kept up to date.

7. Clone Phishing

Clone phishing is a deceptive attack that leverages trust by replicating a legitimate, previously delivered email. Attackers take a genuine email that the target has already received, such as a delivery notification or an invoice, and create a near-identical copy or "clone". They then replace a safe link or attachment with a malicious one and send the cloned email from an email address spoofed to look like the original sender's.

The success of this attack relies on the victim's familiarity with the original communication. For example, an employee might receive a cloned email appearing to be a resent invoice from a trusted supplier, but the link to "View Invoice" now directs them to a credential-stealing site. Because the rest of the email's content, branding, and tone is authentic, the malicious change is much harder to spot.

Business Impact and Mitigation

Clone phishing is particularly effective because it bypasses basic suspicion. An employee who recognises the sender and context is less likely to scrutinise the email, leading to successful malware infections or data breaches. The financial and operational damage can be significant, especially if malware like ransomware is deployed or sensitive login details are harvested.

To protect your business from this sneaky type of phishing attack, a proactive and vigilant approach is essential:

• Promote Link Verification: Train staff to always hover over links to inspect the destination URL before clicking, even in emails that look familiar. Teach them to be wary of updated versions or resends of previous emails.
• Establish Communication Protocols: Create clear procedures for how trusted vendors and partners will communicate updates or resend documents. Verification should happen through a separate channel, like calling the supplier using a known contact number, not the one provided in the email.
• Implement Email Authentication: Just like with CEO fraud, enabling SPF, DKIM, and DMARC is crucial. These protocols help your mail server verify that incoming emails are from a legitimate source, which can block many spoofed addresses used in clone phishing.
• Use Advanced Email Security: Modern security solutions can detect malicious links and attachments even if the email appears legitimate. Features like link rewriting and sandboxing, where links and files are analysed in a safe environment, provide a critical layer of defence.

8. Watering Hole Attacks

A watering hole attack is a strategic and patient type of phishing attack where criminals don't go to their victims; they wait for victims to come to them. Attackers compromise a legitimate website that they know a specific group of users, such as employees of a particular company or industry, frequently visit. They inject malicious code into the site, which then infects the visitor's machine.

This method exploits the trust users have in familiar, industry-specific websites like professional forums, news sites, or software repositories. Instead of sending a suspicious email, the attacker simply lies in wait at the digital "watering hole," making this a particularly insidious threat. For instance, in 2013, attackers compromised legitimate sites frequented by defence contractors to deploy sophisticated malware.

Business Impact and Mitigation

The impact of a watering hole attack can be severe, as it often serves as the entry point for advanced persistent threats (APTs). Once a single employee's machine is compromised, attackers can move laterally across the network to steal sensitive data, intellectual property, or financial information. SMBs in niche sectors are prime targets, as their employees often rely on a small number of industry-specific websites.

Protecting your business from these attacks requires a proactive and layered security posture:

• Maintain Strict Patch Management: Regularly update all web browsers, applications, and plugins (like Java and Flash) across the organisation. Watering hole attacks often exploit known vulnerabilities in outdated software to execute their code.
• Deploy Advanced Endpoint Protection: Use Endpoint Detection and Response (EDR) solutions that can identify and block malicious activity on employee devices, even if it originates from a seemingly legitimate website.
• Filter Web Traffic: Implement a secure web gateway or DNS filtering service to block access to known malicious sites and analyse web traffic for suspicious scripts or code, preventing the initial infection.
• Educate Your Team: Train employees to be cautious, even on trusted websites. Encourage them to report any unusual website behaviour, such as unexpected pop-ups, performance issues, or requests for software installation.

9. Pretexting via Social Engineering

Pretexting is a sophisticated form of social engineering where an attacker creates an elaborate, believable story (a pretext) to manipulate a victim into divulging sensitive information or granting system access. Unlike a one-off phishing email, pretexting often involves a series of interactions where the attacker builds trust and credibility over time. This approach relies heavily on research and psychological manipulation rather than just technical exploits.

Attackers might pose as a contractor needing urgent IT access for 'critical system maintenance', a new hire from HR needing help with their account setup, or even an auditor from a regulatory body demanding access to financial records for a 'compliance check'. By creating a convincing and often urgent scenario, they exploit human nature's tendency to be helpful and to trust those who appear to be in positions of authority or need.

Business Impact and Mitigation

Pretexting can lead to severe data breaches, financial theft, and long-term network compromise. Because it bypasses many technical defences by targeting human psychology, a successful attack can grant a threat actor deep access to company systems. The gradual, trust-building nature of the attack makes it particularly difficult to detect before significant damage is done.

To defend against this insidious type of phishing attack, UK businesses must focus on both process and people:

• Implement Strict Identity Verification: Enforce a strict protocol for verifying the identity of anyone requesting access to sensitive systems or data, especially for external parties. This should involve confirming the request through an official, pre-established communication channel, not one provided by the requester.
• Document and Verify All External Access: Maintain a clear and audited process for all third-party and contractor access. Any request for new or expanded access must be formally logged and verified with the vendor through a known point of contact.
• Adopt a Zero-Trust Mindset: Implement a zero-trust architecture where no user or device is trusted by default. This ensures that even if credentials are stolen, the attacker cannot move freely across the network without repeated verification.
• Conduct Focused Training: Regular cybersecurity training for employees is essential. Staff must be educated on pretexting tactics, learning to be sceptical of unsolicited requests and to follow verification procedures without exception, regardless of perceived urgency.

10. Link Manipulation and URL Spoofing

Link manipulation is one of the oldest and most effective types of phishing attack, tricking users into visiting malicious websites by disguising fraudulent URLs as legitimate ones. The core of this attack is deception; the link displayed in an email or message looks safe, but the underlying destination is controlled by the attacker. This technique exploits the common user habit of not scrutinising URLs before clicking.

Attackers employ several methods to manipulate links. These include homograph attacks, which use characters from other alphabets that look identical to Latin letters (e.g., the Cyrillic 'а' instead of the Latin 'a'). They also use subdomain spoofing, like secure.microsoft.login-portal.com, where the user sees 'microsoft' but the true domain is login-portal.com. Other common tactics are hiding the real link behind shortened URLs (e.g., bit.ly) or using complex query strings to obscure the actual domain.

Business Impact and Mitigation

A single click on a manipulated link can lead to credential theft, malware installation, or ransomware deployment. For a small UK business, this could result in a complete system lockdown or a significant data breach, leading to regulatory fines and reputational damage. The deceptively simple nature of this attack makes it a persistent threat that can bypass basic security filters.

To protect against URL spoofing, UK businesses must adopt a combination of technical controls and user education:

• Promote Link Inspection: Train staff to always hover their mouse over a hyperlink to reveal the actual destination URL in the status bar before clicking. This simple habit is a powerful first line of defence.
• Implement URL Rewriting and Scanning: Advanced email security solutions can automatically rewrite links in incoming emails. When a user clicks the link, it is first opened in a secure, isolated environment (a sandbox) to check for malicious content before the user is allowed to proceed.
• Use Browser Security Features: Ensure browsers are configured to display warnings for sites with invalid or missing SSL certificates. Browser extensions that verify destination domains can also provide an additional layer of security.
• Block Suspicious Domains: Configure your email gateway or firewall to block domains that use homograph characters or are known for phishing activities. This prevents the malicious emails from ever reaching your employees' inboxes.

10 Phishing Attack Types Compared

Building Your Defences: A Proactive Approach to Phishing Prevention

We have journeyed through the murky waters of cyber deception, exploring ten distinct types of phishing attack that threaten UK businesses every day. From the broad net of email spoofing to the highly targeted spear phishing, and the deceptive simplicity of smishing and vishing, one truth becomes abundantly clear: cybercriminals are relentless, creative, and opportunistic. They exploit not just technological vulnerabilities, but human psychology, turning trust and urgency into weapons.

Understanding the mechanics of a watering hole attack or the subtle manipulation of a pretexting call is the first critical step. Recognising the telltale signs of a malicious link or a spoofed URL empowers your team to pause and question before clicking. However, knowledge alone is not an impenetrable shield. The true power lies in translating this awareness into a robust, multi-layered security culture that permeates every level of your organisation.

From Awareness to Action: Weaving Your Security Net

The common thread connecting all these phishing variants is their reliance on a single moment of human error. An effective defence, therefore, cannot be a single tool or policy. It must be a comprehensive ecosystem where technology, procedure, and people work in concert.

Key Takeaways to Implement Now:

• Technology as the First Line: Your first defence should be automated. This includes advanced email filtering systems that quarantine suspicious messages, robust anti-malware software, and network monitoring to detect unusual traffic patterns. Crucially, implementing Multi-Factor Authentication (MFA) across all critical systems is non-negotiable. It acts as a powerful barrier, neutralising the threat even if credentials are stolen.
• Policies as Procedural Guardrails: Clear, documented, and enforced policies are essential. Establish strict protocols for financial transactions, requiring multi-person verification for any fund transfers or changes to payment details. Create a clear reporting mechanism for suspicious communications, encouraging employees to report potential threats without fear of blame. This transforms your staff from potential victims into active participants in your defence.
• People as Your Human Firewall: Ultimately, your most resilient defence is a well-trained, security-conscious workforce. Continuous, engaging training that goes beyond a once-a-year presentation is vital. Use simulated phishing campaigns to test and reinforce learning in a safe environment. Celebrate employees who correctly identify and report threats, fostering a positive security culture.

A Unified Strategy for a Complex Threat Landscape

The different types of phishing attack we've discussed are not isolated threats; they are interconnected tactics in a broader cybercrime strategy. A criminal might use a vishing call to gather information for a subsequent, more convincing spear phishing email. The goal is often financial gain, either directly through fraudulent transfers or indirectly by compromising systems that process payments. This is especially true in the retail sector, where securing customer data and payment gateways is paramount. For a deeper understanding of safeguarding these transactions, the guide on ecommerce fraud prevention best practices offers valuable insights into building a secure operational framework.

By viewing phishing not as a series of individual events but as a persistent business risk, you can develop a more strategic and effective defence. It requires a shift from a reactive, "what-if" mindset to a proactive, "how-to" approach. This means regularly reviewing your controls, updating your training materials to reflect new threats, and ensuring that cybersecurity is a standing item on your management agenda. This proactive stance is what separates organisations that merely survive a phishing attempt from those that confidently repel them, protecting their finances, data, and reputation in an increasingly hostile digital world.

Navigating the complexities of cybersecurity can feel overwhelming for a growing business. HGC IT Solutions specialises in delivering enterprise-grade security strategies tailored for UK SMBs, turning your team into your strongest defence against the ever-evolving types of phishing attack. Contact us to learn how we can build your proactive, multi-layered defence.