Phishing Simulation: The How, What and Why

In the ever-changing world of cybersecurity, phishing remains one of the most persistent and harmful threats to organisations today. According to recent stats, over 80% of reported breaches start with a phishing email, costing businesses billions a year. Despite technical defences getting stronger, attackers are still winning by targeting what remains the most unpredictable part of any security system: humans.

This guide shows how phishing simulation software turns your biggest vulnerability – your people – into an active defence layer. By running controlled, educational phishing tests, security teams can identify vulnerabilities, deliver targeted training and build a security conscious culture before the bad guys strike.

Whether you’re an IT pro looking to start your first simulation programme or a seasoned security expert looking to optimise your existing efforts, this guide has got you covered. We’ll also look at how complementary tools like business password managers provide extra protection against credential theft – even when all else fails.

Understanding Phishing Simulation

What is Phishing Simulation?

What is a simulated phishing test? In short, it’s a controlled exercise where companies send fake phishing emails to their employees to test their security awareness. These simulated attacks mimic real world phishing tactics but in a safe, monitored environment.

Unlike real phishing attacks, these simulations track employee responses without putting company data at risk. They show who clicked on suspicious links, downloaded attachments, entered credentials into fake login pages or—ideally—reported the suspicious email to IT security.

Phishing simulation software is not meant to trick employees but to educate them. These tools help companies find security gaps and provide targeted training before real attackers exploit those gaps.

Why Companies Need Phishing Simulations

The numbers are scary. According to IBM’s 2023 Cost of a Data Breach Report, phishing was involved in 16% of all data breaches, with an average cost of $4.5 million. According to Verizon’s 2023 Data Breach Investigations Report, 74% of breaches involved the human element, with phishing being the number one vector.

Traditional security measures—firewalls, antivirus, spam filters—are important but not enough. Technical defences can’t prevent social engineering tactics that manipulate human psychology.

Security awareness exists on a spectrum. Even within the same company, employee vigilance varies greatly. Without testing, security teams can’t see which departments or individuals will unintentionally provide an entry point for attackers.

Security awareness testing through phishing simulations is a proactive approach. By finding vulnerable users before attackers do, companies can focus their training where it’s needed most.

Benefits of Phishing Tests

Regular employee phishing tests deliver several critical advantages for organization security posture:

1. Risk reduction: Studies by SANS Institute show that regular testing reduces actual phishing success rates by 50-60%.
2. Compliance: Many regulatory frameworks now require security awareness training and testing including PCI DSS, HIPAA, GDPR and ISO 27001.
3. Benchmarking: Simulations provide measurable data on your organisation’s vulnerability and establish baselines for improvement.
4. Targeted training: Results show where your team are knowledge blindspots so you can train specifically rather than generally.
5. Security culture: Regular testing makes security an real concern for all employees not just IT.
6. Cost effective: The cost of a phishing simulation programme is a fraction of the cost of a breach. Ponemon Institute says the ROI of security awareness training is 37x the investment.

Phishing Simulation Tools Guide

Commercial Phishing Simulation Tools

The business market offers several robust commercial solutions for phishing email simulator deployments:

Platform	Key Features	Best For
KnowBe4	Extensive template library, integration with training content	Organisations of various sizes, tiered solutions available
Proofpoint Security Awareness Training	Micro-learning modules, detailed analytics	Enterprise deployments, large organisations
Cofense PhishMe	Advanced reporting, user reporting metrics	Organisations focusing on reporting rates
Infosec IQ	Customisable campaigns, gamification elements	Organisations wanting to boost engagement
SANS Security Awareness	High-quality educational content	Organisations with quality training focus

Commercial tools have user experience, support, integration and content library advantages. Good for organisations without dedicated security training staff or those that need comprehensive reporting.

Open-Source Phishing Simulation Tools

For organisations on a budget, there are several free tools:

Tool	Features	Technical Requirement
Gophish	Campaign management, template creation, basic reporting	Moderate technical setup needed
Social-Engineer Toolkit (SET)	Comprehensive social engineering tools beyond phishing simulations	More advanced technical skills required
King Phisher	Campaign management, reporting features	Moderate technical experience needed

Open-source tools require more technical expertise to deploy and maintain. Lack some of the conveniences of commercial tools but can deliver effective testing for minimal cost.

What to Look for in Simulation Software

When looking at phishing simulation software consider these key features:

• Template variety: Look for tools with multiple, customisable templates for various attack types.
• Automated campaign scheduling: The ability to schedule campaigns in advance reduces admin overhead.
• Reporting: Comprehensive analytics to see trends, vulnerable departments and improvement over time.
• Integration: Integration with training platforms, SIEM systems and HR databases makes the tests more effective.
• Landing page customisation: Ability to create realistic landing pages makes the test more authentic.
• Mobile simulation: As mobile phishing attacks increase, testing mobile awareness is important.
• Difficulty settings: Progressive difficulty levels so you can increase the challenge as awareness improves.

Planning and Executing Effective Phishing Simulations

Establishing Clear Objectives

Before launching your first simulation, define what success looks like. Are you establishing a baseline of current awareness? Testing effectiveness of recent training? Focusing on specific departments or attack types?

Common objectives include:

• Measuring current click rates across the organisation
• Testing awareness of specific phishing tactics
• Evaluating reporting rates for suspicious emails
• Assessing vulnerability in high-risk departments
• Testing effectiveness of recent security training

Document these objectives—they’ll guide your campaign design and provide context for interpreting results.

Targeting and Scheduling Considerations

Effective employee phishing awareness campaigns require strategic targeting and scheduling:

Targeting Approach	Benefits	Considerations
Organisation-wide	Comprehensive baseline data	Potential alert fatigue if too frequent
Department-specific	Identifies vulnerable groups	May miss cross-departmental patterns
Role-based	Targets employees with similar access	Requires more complex setup
Random sampling	Maintains awareness without fatigue	Less comprehensive coverage

Scheduling strategies:

• Avoid predictable patterns that alert employees to tests
• Space campaigns to prevent “simulation fatigue”
• Consider business cycles (avoid critical periods)
• Gradually increase frequency for sustainable awareness

The most effective approach typically combines broad baseline testing with targeted campaigns for high-risk groups or roles with privileged access.

Creating Realistic Phishing Templates

Effective templates balance realism with ethical considerations. They should mirror actual threats without causing undue stress or exploiting sensitive issues.

Elements of effective templates include:

• Relevant context (industry news, internal processes)
• Appropriate branding (when simulating legitimate services)
• Common social engineering triggers (urgency, curiosity, fear)
• Subtle but identifiable red flags (for educational purposes)
• Plausible scenarios relevant to recipients’ roles

Test templates with a small group before wider deployment to ensure they achieve the right balance of realism and educational value.

Measuring Success in Phishing Simulations

Key Metrics to Track

Measurement goes beyond just click rates. Track these metrics for more insight:

Metric	Description	Significance
Click rate	Percentage of recipients who clicked phishing links	Primary vulnerability indicator
Reporting rate	Percentage who reported the email as suspicious	Security awareness indicator
Credential submission rate	Percentage who entered information into fake forms	Serious compromise indicator
Time-to-report	How quickly suspicious emails were reported	Response efficiency measure
Repeat offender rate	Percentage of employees failing multiple tests	Identifies training needs
Improvement rate	Change in metrics over successive campaigns	Programme effectiveness measure

Track these metrics across campaigns to see progress and identify persistent weaknesses.

Interpreting Results

Context matters when looking at simulation results. Consider these when you’re analyzing:

• Baseline comparison: How do results compare to your first test?
• Industry benchmarks: How do your numbers compare to similar companies?
• Template difficulty: Were some templates more sophisticated?
• Departmental variations: Do certain departments show higher risk?
• Timing factors: Could external events have impacted results?

Remember 20-30% initial click rates are common in companies without prior phishing attack prevention training. The goal is steady improvement not perfection.

Benchmarking Against Industry Standards

Industry benchmarks are useful context for your results. According to recent studies:

• Average initial phishing simulation click rates are 15-25%
• After 12 months of regular simulations and training, mature programs are below 5%
• Reporting rates should increase over time, with mature programs seeing 60-80% of phishing emails reported
• Click rates vary by industry, with healthcare, education and retail showing higher risk

Use these as a guideline but recognize your situation may be different.

Phishing Simulation in Employee Training

Connecting Simulations to Training Content

Cybersecurity training solutions are most effective when simulations and training work together:

1. Pre-simulation training: Provide basic phishing awareness before testing to establish foundation knowledge.
2. Post-click education: When employees fail simulations, direct them to specific training on the phishing tactic they missed.
3. Just-in-time learning: Brief, relevant training modules delivered immediately after a failed test show much higher retention than scheduled training.
4. Progressive learning paths: As employees show awareness of basic phishing tactics, introduce training on more advanced attack methods.5. Role-based content: Both simulations and training should address threats specific to different roles within the organisation.

This is a continuous learning cycle not a one-off training event.

Dealing with Failed Tests

How you respond to failed tests matters:

• Don’t shame: Publicly shaming or punitive measures for failures typically creates resentment not awareness.
• Frame as a learning opportunity: Everyone is vulnerable to sophisticated phishing and recognising mistakes is valuable for improvement.
• Tiered responses: First failures might trigger educational only responses, while repeated failures could trigger additional training or manager notification.
• Acknowledge improvement: Recognise and celebrate departments or individuals showing significant improvement over time.
• Clear call to action: Make sure employees know exactly what to do when they see a suspicious email.

The goal is to create a culture where employees feel comfortable reporting potential security incidents not hiding them.

Building a Security Positive Culture

Effective phishing training goes beyond technical awareness to build a security positive culture:

• Executive involvement: Leadership participation in simulations shows organisational commitment.
• Recognition programmes: Recognise security conscious behaviours like consistently reporting suspicious emails.
• Clear policies: Document expected behaviours around suspicious communications.
• Regular communication: Share success stories and metrics to keep awareness up.
• Psychological safety: Ensure employees feel safe reporting potential security issues without fear of blame.

The most resilient security cultures see cybersecurity as a shared responsibility not just an IT function.

How Password Managers Stop Phishing

Phishing attacks target login credentials. Even security aware employees can sometimes fall for advanced phishing attempts. That’s where business password managers come in to help.

The Password Manager Benefit

Password managers like Uniqkey have specific features to prevent phishing:

1. Domain verification: Good password managers only autofill on legitimate domains, not phishing sites with similar URLs.
2. Less manual entry: Since employees don’t type in passwords, they can’t accidentally enter them on fake sites.
3. Strong, unique passwords: Password managers allow using complex, unique passwords for each service, limiting damage if credentials are compromised.
4. Centralised credential management: Business password managers enable quick response when credentials are compromised.
5. Secure sharing: Employees can share access without sharing passwords, reducing phishing opportunities.

Uniqkey: Europe’s #1 Business Password Solution

For organisations committed to robust phishing resistance, Uniqkey delivers comprehensive security capabilities:

• Zero-knowledge architecture: Fully encrypted credential vaults ensuring that even Uniqkey cannot access your passwords, maintaining absolute data integrity.
• Autofill information: Uniqkey securely autofills credentials, TOTP, payment card details and forms validated by the user themselves, which significantly reduces phishing vulnerability vectors.
• Role-based access controls: Granular permission configuration allowing precise control to prevent unauthorised credential access across your enterprise.
• Comprehensive audit logs: Thorough monitoring capabilities tracking all password activities for enhanced security oversight and compliance requirements.
• Seamless deployment: Effortless implementation across organisational teams with minimal operational disruption to existing workflows.
• European data handling: Built and hosted within European infrastructure with complete GDPR compliance, ensuring regulatory alignment.

By implementing Uniqkey alongside phishing simulation programmes, organisations establish multiple defensive layers: staff trained to identify sophisticated phishing attempts complemented by robust technical controls designed to prevent credential compromise even when phishing emails penetrate initial defences.

Conclusion

Phishing is one of the most common and effective attack vectors because it targets the human element of security. Phishing simulation software gives organisations a proactive tool to identify vulnerabilities, raise awareness and build resilience before attacks happen.

Phishing defence needs a multi-layered approach:

1. Regular simulations to test awareness and identify vulnerabilities
2. Targeted training to fill knowledge gaps
3. Clear policies on suspicious communications
4. A positive security culture that encourages reporting
5. Technical controls like password managers to prevent credential theft

By implementing comprehensive anti-phishing training programs that include simulations, education and a business password manager like Uniqkey, organisations can reduce their risk to one of the most common attack vectors. Security is not a one-off; it’s an ongoing process.

Disclaimer: We do not endorse or have any affiliation with the products mentioned in this article. The article is based on research and provides comprehensive educational content. We can only take responsibility for Uniqkey (our own product, a password manager for businesses).

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