What is spear phishing?
Spear phishing is a cyberattack in which criminals target specific people with personalised, fake emails or messages. Instead of sending the same scam to thousands of people, attackers research their targets and create convincing messages that appear to come from trusted sources like colleagues, banks, or business partners.
The key difference? Regular phishing is like throwing a wide net and hoping to catch something. Spear phishing is like using a fishing rod to target a specific fish — sometimes a pretty big one, at that.
How spear phishing works
Attackers start by researching their target. They'll look at your LinkedIn profile, company website, recent news about your organisation, and social media accounts. The goal is to understand who you work with, what projects you're involved in, and what might grab your attention.
Then, they craft a message that looks like it came from someone you trust. Maybe it's your CEO asking you to wire money for an urgent acquisition. Or your IT team requesting your login credentials to "update security systems." The message includes details that make it believable— perhaps referencing real colleagues, current projects, or recent company announcements.
3 examples of spear phishing attacks
Wondering what these attacks look like in action? Here are three hypothetical examples that could very well play out in real life:
1. The executive wire transfer
An employee in accounting receives an email that appears to come from the CFO. The text reads:
"Hi Sara, we need to process an urgent wire transfer to close the JPO acquisition. The seller's bank details are attached. Please send $500,000 today to close the deal before the deadline. This is strictly confidential, so don't mention it to anyone until Monday's announcement."
The email includes the employee’s name, the CFO's real signature, and a reference to an actual project the company is working on. It also (suspiciously) includes a sense of urgency and a plea for strict confidentiality.
2. The IT security update
A finance manager gets a message from "IT Support":
"Hi Jenn, we're updating our security systems this weekend and need to verify your banking portal access. Please click here to confirm your credentials by 5 p.m. this Friday to avoid access issues. If you have problems, call me at 444-0123. Best, Tom (IT Helpdesk)."
The attacker found the name of a real IT support employee (Tom) on the company website and used details from recent IT maintenance announcements.
3. The customer data request
A fintech startup employee receives what looks like a legitimate legal request:
"We're investigating fraudulent activity on account #83729305. Please provide transaction history for this account within 24 hours to comply with law enforcement requirements. Reference case #2025-FS-8821."
The attacker researched the company's account numbering system and used real legal formatting — going beyond the “wide net” approach of a typical phishing attack.
Why most phishing attacks aren't actually that sophisticated
Here's something that might surprise you: most cybercriminals are actually pretty lazy.
As Luigi Pardey, Security Engineer at Fourthline, puts it: "The majority [of attackers] are just people looking to maximise their game by doing minimum effort... Very few examples are highly targeted."
Most scammers prefer to send thousands of generic emails because it's easier and often profitable enough. Even if only 0.1% of people fall for a generic scam, that's still worthwhile when you're emailing millions of people.
But some attackers do invest the time for targeted attacks, especially when they're after bigger prizes.
When attackers choose spear phishing
The decision to spend days researching a target comes down to a simple cost-benefit calculation.
"Imagine that you spend three days researching in order to attack one person, and they immediately block you the moment that you reach out to them,” says Pardey. Attackers ask themselves: is this target really worth the extra effort? Sometimes, the answer is indeed yes.
Targets for spear phishing attacks tend to be more enticing to an attacker than most. They may include:
High-level executives with access to sensitive information
Finance personnel who can authorise payments or transfers
IT administrators with system access privileges
Employees at high-value organisations like financial institutions
Individuals with access to valuable intellectual property
The key factor is potential return on investment. "The more the attacker has to gain by attacking a certain person, the more resources they are likely to invest in it," explains Pardey.
Spear phishing vs. other phishing attacks
Spear phishing vs. regular phishing
Regular phishing casts a wide net with generic messages sent to thousands of people. Spear phishing targets specific individuals with personalised messages. While regular phishing might have a 0.1% success rate, spear phishing can succeed 70% of the time when done well. (Note that these percentages are strictly for illustrative purposes.)
Spear phishing vs. whaling
Whaling is a subset of spear phishing that specifically targets high-level executives (i.e., the really "big fish"). These attacks often involve even more sophisticated research and social engineering.
Spear phishing vs. Business Email Compromise (BEC)
Business Email Compromise is a type of spear phishing where attackers impersonate executives to request fraudulent wire transfers or sensitive information.
Warning signs of spear phishing
Even personalised attacks often contain detectable red flags, if you know where to look for them. Here are a few to watch out for:
Urgency that doesn’t follow process: Legitimate urgent requests typically follow established protocols. Be suspicious of messages demanding immediate action while discouraging verification.
Unusual communication channels: Your CEO probably doesn't normally email you directly about financial matters. If the communication method is unusual for that person, verify it through normal channels.
Information fishing: Messages that seem designed to gather information about systems, procedures, or other personnel rather than convey specific information.
Emotional manipulation: Language designed to create fear, excitement, or guilt that discourages careful consideration.
Technical inconsistencies: Slight differences in email addresses, domain names, or signatures that don't match known legitimate sources.
Spear phishing in fintech and financial services
Financial technology companies face unique spear phishing risks that go beyond typical business concerns. The combination of valuable customer data, regulatory oversight, and rapid growth creates an environment where targeted attacks can have devastating consequences.
Fintech companies are responsible for handling some of the information criminals covet most: customer financial records, transaction histories, payment credentials, and more. A successful spear phishing attack doesn't just mean losing company data — it means potentially exposing thousands of customers to identity theft and financial fraud. This creates a ripple effect where the initial attack becomes just the beginning of much bigger problems.
The regulatory environment adds another layer of complexity. Financial services companies operate under strict compliance requirements, and a security breach can trigger investigations from multiple agencies. Regulatory penalties often exceed the direct costs of the attack itself, and the compliance burden can consume organisational resources for months or years after an incident.
Customer trust represents another critical vulnerability. Unlike other industries where customers might forgive a security incident, financial services customers expect absolute security for their money and personal information. A successful spear phishing attack can permanently damage customer relationships and make it significantly harder to acquire new users who've heard about the breach.
Why spear phishing can achieve high success rates
Spear phishing attacks achieve high success rates because they exploit fundamental aspects of human psychology and organisational behaviour. Unlike mass phishing attempts that rely on more obvious tactics, spear phishing leverages authority, urgency, relevance, and social proofs to create a more credible scam.
However, the fundamental principles of cybersecurity still apply. As Pardey notes: "The attacks that are most likely to get you are the ones that are the most basic.”
This insight highlights an important reality: while spear phishing represents a sophisticated threat, many successful attacks still exploit basic security weaknesses like poor password practices, lack of multi-factor authentication, or insufficient employee training.
To help safeguard you and your company from potential attacks, here are some practical items to take care of:
Spear phishing defence: A practical checklist
Immediate actions:
Verify any financial request through a separate communication channel
Check email addresses carefully and look for subtle misspellings in domains
Hover over links to see actual destinations before clicking
Be suspicious of urgent requests that bypass normal approval processes
When in doubt, pick up the phone and call the supposed sender
Technology safeguards:
Enable multi-factor authentication on all business systems
Use email security solutions that analyse sender reputation and content
Implement network segmentation to limit breach impact
Keep all software updated with security patches
Deploy endpoint detection and response (EDR) tools
Organisational policies:
Establish verification protocols for financial transactions
Create clear escalation procedures for suspicious communications
Require dual approval for wire transfers above certain amounts
Document standard communication procedures and train employees
Conduct regular phishing simulation exercises
For fintech companies:
Implement customer verification protocols for account changes
Monitor for unusual transaction patterns after suspected attacks
Maintain incident response plans that include regulatory notification requirements
Train customer service teams to recognise social engineering attempts
Review and test business continuity plans regularly
Read more about how to prevent fraud in an organisation.
The sophistication spectrum
Spear phishing exists on a spectrum of sophistication. While some attacks involve extensive research and careful planning, others may simply add a target's name to an otherwise generic template.
"The majority of the attacks are not sophisticated at all. In fact, they involve minimum effort to get what you would think is peanuts for [attackers]," explains Pardey. This reality means that basic security practices can defend against many attacks labelled as "spear phishing."
However, truly sophisticated spear phishing campaigns represent a different category entirely. These attacks may involve weeks or months of preparation and can be extremely difficult to detect.
Defending your organisation against spear phishing attacks
Spear phishing represents a significant and evolving threat that requires careful consideration in any organisation's security strategy. While these targeted attacks demand more sophisticated defences than mass phishing campaigns, the fundamental principles of cybersecurity remain crucial.
The most effective defence combines understanding attacker motivations and methods with practical security measures tailored to organisational risk profiles. By recognising that spear phishing attacks target human psychology as much as technical vulnerabilities, organisations can build comprehensive defences that protect against both current threats and future evolution of these sophisticated attacks.
Looking for more ways to solve your business’s security challenges? Talk to one of our experts today.
This article incorporates insights from Luigi Pardey, a Security Engineer at Fourthline. It is for informational purposes only and does not constitute legal advice.
